Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Not-for-Profits Need High Calibre Board Members

Media Release

6 December 2005

Not-for-Profit Organisations Need More High Calibre Board Members

A growing number of not-for-profit organisations are paying board members for their services, but many of them still have concerns about being able to attract high calibre individuals to serve at board level.

These are among the findings of the Grant Thornton 2005 survey of not-for-profit organisations.

"We were not surprised to find that the three most challenging issues for this sector - financing, fund-raising and governance - were the same as in our last survey in 2003," said Grant Thornton not-for-profit specialist Brent Kennerley.

"But it is of concern that, while more NFPs are doing their bit by providing some remuneration, they are still having trouble attracting people with business and other such skills to their boards. This says to us that they still have some mind-set barriers to overcome, and there probably has to be more work done on shifting perceptions of both how stimulating and rewarding these particular governance roles can be."

Some 36% of respondents said they now provided remuneration to one or more members of their boards. In the 2003 survey, the figure was only 24%.

Meanwhile, more than half of the respondents are concerned about their ability to attract high-calibre individuals to serve on their boards.

Some 46% are concerned their boards do not undergo sufficient training and 41% believe their boards lack adequate knowledge of relevant legislation.

"This is probably due to the fact that board members are drawn most commonly from internal sources, such as from regional or membership representatives," said Mr Kennerley. "From the survey we can see that only a minority look outside their organisations for board members and obviously very few are volunteering themselves in from outside their circles.

"This inward focus may be constraining the range of skills and experience available to govern not-for-profits."

Mr Kennerley said that, in conjunction with this, many NFPs gave low priority to risk management and this was of concern.

"Nearly half the respondents do not undertake periodic risk profile assessments. As a result, they may be highly vulnerable if they face major problems beyond their control.

"It transpires that, even among those who undertake risk planning, there are gaps."

Mr Kennerley said that few had contingency plans or insurance for the loss of key staff and less than half had "worst case scenario" plans for disaster, loss of key income sources, or adverse media attention.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>


  • Bill Bennett on Tech