Governance Guru: Why should my not-for-profit care about this Blueprint?

The Blueprint explicitly calls on sector organisations to take the lead in certain actions rather than wait for the government. It emphasises that collective and collaborative approaches are key to shaping a positive future for the sector.

Great idea – in theory!

But how do NFP organisations find precious time and resources to help shape the future if they are struggling to survive in the present?

Here are some ideas for how your organisation can take up ideas in the Blueprint.

These ideas focus on collaboration, sustainability, and practical solutions that can be applied immediately, even with limited resources. By aligning your actions with the Blueprint, your organisation can directly support sector-wide objectives.

Board members are often deeply involved in the communities they serve, and their professional or personal networks may intersect with the organisation’s operations.

While having a conflict of interest is not inherently negative, failing to properly declare and manage them can lead to reputational damage, loss of trust, and even legal consequences.

Two of the key fiduciary duties of a board director are:

1. The duty to exercise due diligence – to make decisions with care, and in the best interests of the organisation.
2. The duty to use powers for proper purpose – to ensure personal interests do not unduly influence decisions.

Understanding and effectively managing conflicts of interest is essential for maintaining the integrity of an organisation’s governance and decision-making processes.

1. Advocate for full-cost, sustainable funding

Why it matters: Underfunding, short contracts and lack of indexation are major sector issues.
Board action

• Require all funding proposals to include full cost recovery (staff, admin, compliance)
• Use board networks to push for multi-year, indexed contracts with government and philanthropy
• Join or support sector campaigns advocating for sustainable funding models (e.g. “Pay what it takes”) or examine the Centre for Public Value’s research into human services costs.

Next steps

• Assume full cost funding in the organisation’s strategic or business plan to signal intentions to all stakeholders
• Develop internal policies that outline the need for full-cost funding agreements
• Have board members directly explain to funders why full-cost funding is necessary to sustain services, retain staff, and ensure compliance.

2. Join in collective advocacy for sector reform

Why it matters: The Blueprint calls for stronger sector-wide collaboration and advocacy rights.
Board action

• Develop an advocacy policy that protects the organisation’s voice
• Join peak bodies (e.g. ACOSS, state councils) and contribute to consultations or joint submissions
• Participate in efforts to harmonise regulations and reduce red tape.

Next steps

• Invest in advocacy training for the board and executive team
• Collect and share real life examples and case studies that demonstrate the impact of regulatory overburden on NFPs
• Subscribe to peak body newsletters and alerts to track upcoming consultations, surveysand policy submissions. Endorse or contribute to collective submissions.

3. Involve the people who use your organisation’s programs and services in design and decision making

Why it matters: Services should be shaped by the people they serve.
Board action

• Include people with lived experience on boards or advisory groups
• Involve people affected by programs in program development
• Allocate budget and time for genuine community consultation.

Next steps

• In the strategic plan, include specific objectives and targets related to the involvement of people with lived experience
• Invest in training on cultural competency and community engagement for the board and staff
• Develop and apply internal policies and procedures to complement and reinforce the training.

4. Support Aboriginal and Torres Strait Islander self-determination

Why it matters: The Blueprint prioritises First Nations leadership and service control.
Board action

• Build formal partnerships with Aboriginal-led organisations
• Commit to First Nations representation in governance (where appropriate)
• Invest in cultural safety training and direct funding to First Nations-led initiatives.

Next steps

• Prioritise First Nations businesses in procurement policies
• Add a standing item to the board meeting agenda calling on board directors to reflect on engagement with local First Nations owners, custodians and elders and how this might influence the organisation’s policies and practices
• Collaborate with a local First Nations organisation to create an event, project or report.

5. Strengthen governance to drive sector change

Why it matters: Strong, future-focused boards are essential for sector resilience.
Board action

• Review governance practices annually and improve continually
• Oversee a digital, environmental and workforce sustainability plan
• Monitor alignment with the Blueprint and report progress regularly.

Next steps

• Invest in training on the implications for governance of areas such as cyber security and artificial intelligence
• Undertake an annual board review and self-assessment
• Add a standing item to the board meeting agenda on monitoring Blueprint alignment and progress.

Given that this is a 10-year Blueprint, we encourage organisations to start small and tackle one important action initially, rather than trying to tackle everything at once. Reviewing the government response to the report (due to be handed down at the end of March) and joining peak bodies like the Community Council for Australia are simple ways to ensure that your organisation ispart of the bigger picture.

The more empowered the community sector is in advocating for change, the more likely change is to happen. Every NFP has the opportunity, and the responsibility, to play a role in ensuring this roadmap leads the whole sector to a brighter future.

Understanding conflicts of interest

A conflict arises when a board member’s personal or professional interests clash with their ability to make objective decisions for the organisation. There are three common types:

• Actual conflict of interest: A board member (or someone close to them) directly benefits from a decision.
• Potential conflict of interest: A situation where a conflict could arise in the future, depending on circumstances.
• Perceived conflict of interest: Even if no real conflict exists, others may believe that a board member has an interest that could compromise their impartiality.

It is important to distinguish conflicts of interest and strong personal views. Passionate debate and differing viewpoints contribute to healthy governance. However, failing to disclose a relevant personal interest can signal poor governance.

Examples you might encounter

Actual conflict of interest

Janet is a board member of a housing cooperative and owns a plumbing business. The cooperative is seeking a new plumbing contractor, and Janet’s business submits a bid.

Perceived conflict of interest

Lee, another board member, discovers that his former partner’s new business has submitted a tender for the plumbing contract. While he has no current financial interest in the business, other members may perceive bias in his decision-making.

Strong opinion (not a conflict)

Arun, another board member, strongly advocates for a particular contractor based on prior positive experience. However, he has no personal or financial ties to the contractor.

Types of conflicts

To determine whether a situation constitutes a conflict of interest, board members should ask themselves: Would a reasonable person believe my personal interest could influence my decision-making?

1. Financial conflict: A board member or someone close to them stands to gain financially from a decision. This could include payments, commissions, or discounts.
2. Relational conflict: A board member’s personal relationship (family, close friends, or associates) unduly influences a decision.
3. Ideological conflict: A board member’s personal beliefs, religious views, or political stance cause them to oppose a decision that is otherwise in the organisation’s best interests.
4. Loyalty conflict: A board member’s commitment to another organisation, such as an employer or another board they sit on, creates divided loyalties.

Declaring and assessing conflicts

All conflicts must be declared. If a member fails to do so, others should raise the issue. The rest of the board should consider:

1. Is this a potential conflict of interest or just an opinion or disagreement?
2. Could the board member (or someone close to them) benefit from the decision?
3. Would a reasonable person think the conflict compromises objectivity?

If the answer to any of these questions is ‘yes’, it should be treated as and managed as an actual conflict. If no, document the discussion and record it as non-conflict in the minutes.

Managing conflicts of interest

1. Check regulations and organisational policies: The organisation’s constitution, by-laws, and relevant legislation may outline specific procedures for managing conflicts.
2. Exclusion from discussion and decisions: In most cases, the conflicted board member should leave the room during discussions and voting.
3. Documentation: The decision and its management should be recorded in the minutes, including when the conflicted member exited and re-entered the meeting.
4. Use a conflict of interest register: A register of declared conflicts ensures consistency in future governance decisions.

When quorum is at risk

In rare cases, multiple conflicts may leave too few board members to form a quorum. In such cases, consider:

• delegating the decision to a sub-committee or staff member
• disclosing conflicts, but allowing participation while upholding fiduciary duty
• referring the decision to members at a special general meeting (SGM).

You can’t avoid conflict, but you can manage them well

Managing conflicts of interest effectively is essential for good governance in community organisations. While it is natural for board members to have personal or professional connections to their work, transparency and accountability ensure that decisions remain impartial and in the best interests of the organisation.

Boards should:

• have an up-to-date conflict of interest policy
• maintain a conflict register, and,
• regularly review governance practices to protect both the organisation and its members.

By proactively identifying and addressing conflicts, boards can uphold their fiduciary duties, maintain trust within their community, and ensure sound decision-making processes.

More information

Help sheet: We've matched the Blueprint recommendations to our resources

Community Directors Intelligence special report on the Blueprint

Free ICDA webinar: Learn more about the NFP Sector Blueprint

Sector support vital for Blueprint’s success

Workplace reforms urgently needed