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By Nick Koerbin
According to a recent Association Executive Services' webinar
with Jennifer Moltisanti from the Australian
Taxation Office,
most associations or not-for-profit organisations in Australia must soon review their governing documents as part of their self-assessment
process for claiming not-for-profit status.
💡 This includes your organisation's constitution, known as governing rules, memorandum of association, or charter. It is not just a set of
guidelines; it is a legal document, a contract, and its terms must always be adhered to by all members, including the Board.
💡 In the ever-evolving NFP sector, organisations often find themselves on a different trajectory. Their current objectives and activities
might not align with those stated in their constitutions. Regular reviews are not just important, they are crucial to ensure alignment.
💡Unfortunately, this is often one of the jobs that gets kicked down the road. The number of constitutions our consulting team has reviewed
that need to be updated or aligned with the organisation's direction and purpose is alarming.
💡We are noticing that some not-for-profit organisations are now fined by regulators for not complying with their constitutions.
💡If your constitution looks like it was written on a typewriter, it is time for an update.
However, it's not only constitutions written before the invention of the computer that would benefit from a review.
Updating your constitution is not just a task; it's a responsibility. It's an opportunity to ensure the document reflects contemporary legal
requirements and your current operations.
This can lead to better governance and a more effective organisation, and it's up to you to make it happen.
The association sector is in the middle of a leadership handover.
Across Australia and New Zealand, CEOs and Executive Directors are moving on. Some are retiring. Some have gone to larger organisations.
Some have left because the relationship with their Board ran out of puff. The reasons vary, but the movement is noticeable, and Boards are
appointing replacements.
The encouraging part is the calibre of the people coming in. Many are genuinely well suited to the job — capable executives with strong
records behind them. A good number are stepping into an association CEO role for the first time.
Most associations can provide a long list of membership benefits. They may include professional development, advocacy, networking, industry information, events, resources, accreditation, discounts and access to specialist advice. However, a list of benefits does not necessarily explain why someone makes the decision to join.
While every Board is different, the same governance issues appear time and again. One of the most common is allowing one person’s behaviour
to dominate the Board table.
Almost every Board has experienced it at some point. One director who seems to consume more time and energy than everyone else combined.
How we help membership based, not-for-profit associations now and into the future.
