Governance & Management
Governance and Management: Charities and the Non-governmental organisations in Africa have been in the forefront of demanding for good governance, transparency and accountability from the public sector. The sector can least afford to continue with business as usual. Time has come for the sector itself to carry out critical self-appraisal and walk its talk. To be fit for purpose and demonstrate high level of accountability, organisations need to have appropriate governance arrangements.
Our sector depends on money belonging to organisations who, as matter of course, and in order to deliver value for money (vfm) would pay as much attention to your organisation’s capacity to handle public funds or resources that could be put into other uses.
What do we mean by governance?
Governance means the way your organisation is set up and run. It is partly about the procedures, policies, documents and management arrangements you have in place or the way you administer and control your organisation, including its finances and delivery of what it has been set up to achieve. It is also about your organisation’s relationships with the stakeholders and the aims and objectives of your organisation. The main stakeholders will include trustees, people and groups who use your services and activities, directors and employees and most importantly, organisations and individuals who fund your activities. Other stakeholders include professional services, banks, regulators and the community at large.
Why is good governance important?
Every donor agency or organisation would wish to ensure that their money is going to organisations that can effectively deliver projects to those most in need and is being used for the genuine benefit of the community. To ensure this, they will only make awards to organisations who can demonstrate that they have adequate governance to hold funds ‘on trust’ whilst they deliver these aims. With competition for funding increasing, donors are increasingly looking for more evidence of your organisation’s ability to manage scarce resources. It is essential that you can demonstrate to them that you have the sound governance structures required to ensure that your organisation can successfully manage and deliver the project you want to be funded. This is just as important as demonstrating that your outcomes will bring benefits to those most in need. If you do not have the governance structure to deliver the outcomes, then the real benefits will not be felt.
You must have already incorporated some useful clauses into your constitution (if you have one). The starting point would be for us to be sure that there are adequate safeguards for accountability and probity in that document. They will expect that your governance and record keeping will be in accordance with the relevant statute and guidance issued by the relevant regulatory bodies. They will be seeking reassurances that your organisation have sufficiently sound governance to enable you to concentrate upon the delivery of what your organisation has been set up to do. They will expect that you have robust policies that can guide relationship between all the different stakeholders having one thing or another to do with your organisation. For instance, they will be desirous to see your Financial Protocol, etc. They will be eager to know if you have regular management and board meetings and be willing to know how decisions are made at those meetings.
If you need our Advice and help in order to begin the process of having the right Governance and Management in place for you organisation kindly fill out the form below and one of our Advisers will respond to your needs.