Standards wait welcomed

THE federal government’s recent decision to delay implementation of new governance standards for not for profits highlights the complexities involved in regulating the sector, according to the Australian Institute of Company Directors.

AICD chief executive John Colvin welcomed the decision to delay implementation and hold further public consultation on governance standards for charities.

“The government has said they are committed to smarter regulation for the NFP sector and we believe they should conclude, through their future consultations, that a sector-driven response is the best approach to foster good governance of NFPs,” Mr Colvin said.

“Legislation will never be able to cater for the wide range of organisational forms, missions and activities of differing size and complexity that exists in the NFP sector. A one-size-fits-all approach, even mandated principles, simply will not work, and could have unintended consequences.” 

The AICD plans to take a leadership role in the development of principles and guidelines for the sector, to be published as part of the incoming Australian Charities and Not for Profit Commission by the end of 2012. 

“The principles and guidelines we develop will allow the NFP sector to adopt an appropriate set of governance arrangements for their own individual circumstances, and adapt these over time as conditions warrant,” Mr Colvin said.