Not-for-profits have varied governance structures. Different terms are used for some governance bodies depending on the sector involved. There are boards, management committees, councils, advisory boards, advisory groups, directors, councillors, governors, management committee members, committees, branches. Sometimes the terms used are confusing because of their different use in the government or private sector and the public sector.
It is our experience that there is sometimes confusion within a not-for-profit organisation of the power or authority and the role of each part of the governance structure. Sometimes this is because it is not appropriately set out or explained in the governance documents. Sometimes it is because of a change in the membership or governance group. Sometimes it is because of a lack of an induction process. Perhaps there is no clear delegation policy or process.
For example, some boards are advisory only whilst others are boards with decision- making responsibility and duties under the Corporations Act or the Australian Charities Not- for- profit Act 2012. Sometimes committees are delegated with decision making power and sometimes they are not. It may be unclear what personal liability an individual has in some of these roles.
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