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.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>



Psychic Ventures: US Consumer Spending On Video Games Jumped By 42% In Jan 2021

On a global scale, there was a 15% increase in digital games revenue in January 2021, pushing the total to $11.6 billion.
In the US, gaming revenue rose to an impressive high during the month thanks to the new generation of consoles. ... More>>

OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>