ACNC Governance Standards · AICD NFP Governance Principles

NFP Board
Health Diagnostic

Rapid health check for not-for-profit and charitable boards. Assess mission alignment, financial governance, director independence, and community impact — benchmarked against ACNC Governance Standards and the AICD NFP Governance Principles.

6
ACNC Governance Standards all charities must meet
57,000+
registered charities in Australia — sector governance gap is material
AICD
NFP Governance Principles — the director standard for the sector
Survey Evidence: ACNC Governance Standards 2023 — all registered charities must meet six mandatory governance standards, with board composition and financial oversight representing the most common areas of non-compliance.
NFP Board Health Diagnostic — Assessment

Answer 8 questions to diagnose the health of your NFP board. Results are benchmarked against the six ACNC Governance Standards and the AICD NFP Governance Principles, covering mission alignment, financial oversight, director independence, and stakeholder engagement.

Question 1 of 8 — Mission Alignment

How regularly does your board formally assess whether organisational activities remain aligned to your charitable purpose and mission?

Question 2 of 8 — Financial Oversight

How confident is your board in its understanding of the organisation's financial position and sustainability?

Question 3 of 8 — Director Independence

What proportion of your board directors are genuinely independent of management and major donors/funders?

Question 4 of 8 — CEO Relationship

How would you characterise the governance boundary between your board and CEO?

Question 5 of 8 — Strategic Planning

Does your board lead a formal strategic planning process with documented goals, KPIs, and progress reporting?

Question 6 of 8 — Fundraising Governance

Does your board have visibility of and oversight over all fundraising activities and donor relationships?

Question 7 of 8 — ACNC Compliance

Is your board confident that all ACNC Governance Standards and annual reporting obligations are met?

Question 8 of 8 — Board Renewal

Does your board have a formal skills matrix, succession plan, and director recruitment process?

Noventum Advisory is analysing your governance posture…
Analysing mission alignment…

NFP Board Health Report

Overall Governance Maturity Score
47 / 100
Based on your 8-question assessment
DEVELOPING — Key governance standards require strengthening
Domain Scores
Mission & Strategy55%
Strategic plan exists but KPI tracking is informal. Mission alignment review is infrequent. Formalisation recommended.
Financial Governance50%
Quarterly financials reviewed but monthly management accounts not in place. Board financial literacy needs assessment.
Director Independence45%
Independence not formally assessed. Funder relationships may create conflicts. Annual independence review required.
CEO & Governance Boundary60%
Generally clear but no formal board charter with CEO mandate. Documented governance boundary is best practice.
Fundraising Governance40%
Major donors known but no formal fundraising governance policy. Board oversight of fundraising activities needs strengthening.
ACNC Compliance50%
Self-assessed compliant but no independent check. External legal review of ACNC standards recommended.

Recommended Governance Frameworks

Immediate

ACNC Governance Standards Review

Conduct a structured self-assessment against all six ACNC Governance Standards. Engage an NFP governance specialist to identify any compliance gaps and develop a remediation plan.

30 Days

AICD NFP Governance Principles

Adopt the AICD NFP Governance Principles as your board's operating framework. The 10 principles cover purpose, board composition, accountability, and stakeholder engagement.

60 Days

Board Charter & CEO Mandate Development

Develop or refresh your board charter to clearly define board roles, the CEO mandate, delegated authority, and decision-making frameworks. Engage an experienced NFP governance advisor.

Prioritised Action Roadmap

1

Conduct a formal ACNC Governance Standards self-assessment

Use the ACNC's own governance standard checklist. Engage external NFP governance counsel to verify compliance and identify gaps. Document findings and present to the board.

⏱ Target: 30 days · Owner: Board Chair + Company Secretary
2

Formalise the board/CEO governance boundary

Draft a board charter defining the division of responsibilities between the board and CEO. Include a delegation of authority schedule and CEO KPIs with formal board approval.

⏱ Target: 45 days · Owner: Board Chair + CEO
3

Introduce monthly management accounts with board narrative

Implement monthly financial reporting to the board including: income vs. budget, cash position, key program expenditure, and a CFO/CEO narrative. Strengthen board financial literacy if needed.

⏱ Target: 60 days · Owner: Finance Committee + CFO
4

Conduct a formal director independence assessment

Implement an annual director independence declaration process. Identify any actual or perceived conflicts, particularly with major funders. Establish a conflicts register.

⏱ Target: 60 days · Owner: Board Chair + Company Secretary
5

Develop a board skills matrix and succession plan

Build a skills matrix reflecting the capabilities required for your organisation's strategy. Map current directors against the matrix. Develop a director recruitment brief for identified gaps.

⏱ Target: 90 days · Owner: Nominations Committee
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