The Australian Institute of Company Directors (AICD) Not-for-Profit Governance & Performance Study 2022-23 reveals the increased challenges and demands impacting directors in the Not-for-Profit sector.

Key Findings Include:

  • 68 per cent rated their organisation as highly effective in achieving its purpose, although the most used measurement was from CEO reports and other management metrics.
  • Directors are committing more time, with over 40 per cent spending more than three days per month on a single NFP.
  • For organisations responsible for providing care, directors were mainly using CEO reports as the primary source of information on the quality of care provided.
  • The percentage of directors being remunerated has increased to 22 per cent, compared to 14 per cent, five years ago.
  • Profitability has fallen with almost a quarter (24%) making a loss, compared to 15 per cent last year.
  • Despite the drop in profitability almost 75 per cent said their organisation would be financially stronger in three years’ time.
  • Only five per cent were currently undertaking a merger.
  • Workforce planning, staff shortages and board succession planning identified as key issues.

‘Tougher governance standards resulting from various Royal Commissions, workforce shortages and the ongoing legacy of COVID-19 all continue to affect not-for-profit organisations, with many directors forced to re-evaluate their role in this vital sector…’