With 30 June under your belt, many of you will be thinking ahead to your next Annual General Meeting. I have attended many charity and not-for-profit AGMs over the years, including some when I have been up for election as a board member, and would like to share some insights.
A good starting point is to consider your charity’s obligations. All charities must be accountable to their members and allow questions to be asked, and we advise this can be achieved in a well-run AGM. You may also be required to hold an AGM by another regulator or there may be this requirement in your charity’s constitution or a provision in a funding contract. You can check these things in your contracts, on the ACNC website and with your state or territory regulator.
Of course, you need to tailor the AGM agenda for your charity. You could focus solely on fulfilling meeting obligations under your constitution. Or you could also approach it as an opportunity to celebrate achievements, inspire and engage your members and supporters ̶ maybe awards for staff and volunteers, and stories that show why your charity’s work matters ̶ its impact.
AGMs often mean change to members of your board or committee, and you need to prepare to support this transition. Charities have a duty to notify the ACNC of changes to their board or committee, their Responsible People, and there are time limits. Small organisations have up to 60 days to notify changes, and larger ones have up to 28 days.
A thorough handover helps with knowledge sharing and helps make sure your charity doesn’t lose momentum. Make sure you pass on key documents like the constitution, the latest strategic plan, budgets, passwords and details about the charity’s obligations to remain registered and their duties as board members. Explain upcoming tasks and known challenges. You may like to arrange site visits and times to see service delivery in action.
We’ve developed a checklist that can support new leaders to hit the ground running. Handovers done well give confidence to those stepping in, and allow people considering taking on the role in the future to see there is good support there.
When it comes to the regular work of the board, governance hygiene is important, but unfortunately, can sometimes be neglected. Record-keeping is the core of good governance, and an ACNC requirement for ongoing charity registration. It applies to all registered charities regardless of size or any reporting exemptions, including Basic Religious Charities.
One thing we see time and time again in our compliance work is that poor recording-keeping goes hand in hand with poor governance. A handover is a good time for a reset; improving record-keeping can be a great way to provide immediate value to any board. We have plenty of guidance and resources to help you, such as this meeting minutes template. Clear minutes are a useful handover tool. Remember to capture what was decided ̶ resolutions and actions ̶ and why, rather than noting every word said.
For new board members, our free Governing Charities online learning content is a great way to get across the requirements of the role, with quizzes to reinforce your learnings. A certificate can be downloaded after each section is completed. Even if you have been on a board for some time, it is useful to refresh and update your knowledge about key areas such as your obligations under the ACNC Governance Standards.
And finally, a reminder that it’s only a couple of weeks until our Governing For Good Forum. It’s free and you can still book to attend online. If you can’t make it, we will have recordings available to watch later.
Warm regards,
Sue Woodward AM