THE Australian Institute of Company Directors’ latest report into not-for-profit directorships has revealed specifics around the dedication of business people to the community sector.
The ‘Directors Social Impact Study 2011’, a study mining the governance of the not-for-profit sector and the contribution made by its directors, found that, on average, non-executive directors of NFP organisations spend the equivalent of seven working weeks a year on their role as a director, with 89 per cent of these directors fulfilling this role on a voluntary basis.
“This voluntary contribution is essential to organisations which often struggle with limited resources and funding,” AICD chief executive John Colvin said.
The study also examines governance practices in NFP organisations compared to the for-profit sector.
The study found that the time NFP non-executive directors spent in their roles, the duties they perform and their level of ongoing education were broadly comparable to for-profit organisations.
However, Mr Colvin said care needed to be taken when making comparisons within the NFP sector and between the NFP and for-profit sectors.
“It is clear from the study that governance practices in the NFP sector are continuing to evolve, with a key influence being the experience that individual directors bring from their other director roles,” he said.
‘‘The extent and value of such ‘cross-pollination’ should not be underestimated.”
