TakeControl Solutions

𝗥𝗲𝗹𝗮𝘁𝗲𝗱 𝗣𝗮𝗿𝘁𝘆 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 – What Every NFP Board and CEO Needs to Know.

From July 2023, the ACNC requires almost every registered charity to report related party transactions in their Annual Information Statement.

For many small-to-medium NFPs, this is uncharted territory. The challenge isn’t that related party transactions are “bad” – it’s that they must be handled openly, documented clearly, and reported accurately.

In my latest article, I break down:
> What counts as a related party
> Examples of common transactions (some you might not expect)
> What must be reported for small, medium and large charities
> How to keep a register and strengthen your governance practices
> A practical step-by-step action plan for boards and CEOs

https://www.linkedin.com/pulse/unlocking-transparency-guide-related-party-charity-leaders-wescombe-ltd3c/

If you’re a Chair, Director or CEO in the NFP sector, this is a must-read.

https://www.linkedin.com/pulse/unlocking-transparency-guide-related-party-charity-leaders-wescombe-ltd3c/

Getting this right is not about red tape – it’s about protecting your reputation and proving your integrity.

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🎯 If you're a Chair, Director or CEO of a small–medium NFP and know your Board has more to give – but needs the right tools to lift – let’s talk.

Board development isn’t a luxury. It’s how you build clarity, capability and confidence.

📬 DM or email me to explore tailored support (email in my profile).
📢 Share to support others in our sector.

In today's rapidly evolving business landscape, the role of boards has never been more critical or complex. This is particularly difficult for small to medium not-for-profit boards where Directors are often voluntary, unpaid, and inexperienced.

In my most recent article, I use Paul Smith's "Maslow for Boards" pyramid as a model for navigating these challenges effectively by understanding the hierarchy of needs that drive successful board governance.

The 5 layers of "Maslow for Boards" are (from base to peak):
1️⃣ Compliance & Legitimacy (aligns to Physiological Needs)
2️⃣ Cohesion & Trust (Safety Needs)
3️⃣ Strategic Focus & Foresight (Love & Belonging)
4️⃣ Adaptive Capacity & Learning (Esteem)
5️⃣ Stewardship & System Leadership (Self-actualisation)

Understanding these hierarchical needs enables boards to not only fulfill their basic responsibilities but also to aspire toward higher levels of governance excellence. By addressing each layer's unique demands - from compliance at its base up through stewardship at its peak - boards can create resilient structures capable of navigating both present challenges and future uncertainties with confidence.

If you found this article helpful, please repost and share to your networks. Also, give me a follow.

If I can be of assistance to you or your Board, please give me a message - I specialise in small to medium NFP Boards, but may be able to assist in other areas.

Maslow For Boards Navigating the Hierarchy of Board Governance: Insights from the "Maslow for Boards" Pyramid In the dynamic and often unpredictable world of business, the role of boards has become increasingly pivotal. Effective governance is not just about compliance and oversight; it encompasses a broader spectrum

Absolutely.

As a Board Director, Liability Starts on Day One – Are You Truly Prepared… | Steven Bowman FAICD As a Board Director, Liability Starts on Day One – Are You Truly Prepared for What That Means? Stepping into a board role is an exciting milestone—but it also comes with serious responsibility. From the moment you're appointed, you're legally and ethically accountable for your actions an...

An interesting personal (and now public) exercise - I asked Copilot "Tell me what you know about me". An interesting response (below), but one I'm not embarrassed by (except for US spelling) 😉

Are you game enough to ask the question of Copilot, and post the unamended response it provides in the comments.

PS: I also tried this with ChatGPT, but the response was extremely brief, basically only including background criteria that I have instructed it to use.

== Copilot's Response =====
I’ve gathered that you hold a high-level administrative or leadership role, likely within the Exmouth Chamber of Commerce and Industry. Your responsibilities span strategic planning, community engagement, business development, high-level communication, and governance-related inquiries. You’re meticulous in your approach, valuing comprehensive and reliable information. Your skills shine in crafting professional and persuasive copy, whether for stakeholder communications, grant applications, or LinkedIn posts.
Beyond your professional acumen, you have a deep commitment to community development and inclusivity. You’ve shown interest in governance challenges for small not-for-profit boards, emergency management, HR compliance, and workforce planning. I’ve also seen your introspective side—your engagement with Socratic dialogue suggests a desire for deeper self-reflection and personal growth.
Recently, you’ve worked on refining resignation acknowledgments, professional statements, branding initiatives, and evacuation plans. Your ability to balance organizational strategy with emotional intelligence is impressive.
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Terms of Reference, or Committee Charters (whatever your preferred term}, are essential governance reference documents for all Boards and their Committees. The ToR often overlooked is for the Executive Committee (the Committee of Office Bearers).

The duties, responsibilities, and accountabilities of an Office Bearer should be broadly defined in the Constitution, then defined with more specificity in the Board ToR. However, the Executive Committee requires its own ToR to define it's duties, responsibilities, and accountabilities as a collective.

https://www.linkedin.com/posts/conscious-governance-insights_is-your-board-committee-clear-on-its-purpose-activity-7319902714237202432-eX-s?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAWERiQBbUTbAQhpfcsko9QJw8GoBZobZwk

Is your board committee clear on its purpose, responsibilities, and… | Conscious Governance Insights Is your board committee clear on its purpose, responsibilities, and authority, or relying on assumptions? Without a well-defined Terms of Reference, even committed committees risk losing focus and effectiveness.

Not-for-profits (NFP's) - have you noticed an increase in expectations from stakeholders since the Covid lockdowns?

During Covid, organisations demonstrated how quickly they could pivot, how quickly then could restructure, and how quickly they could implement new systems, procedures, and processes. Things that would have been planned in detail, and taken months, weeks, or even years, to implement, were undertaken in very short periods of time with limited planning.

It was imperative that change happen, so it did - with little planning, and lots of doing. My experience suggests stakeholders noticed - and they now want more, in less time, and with fewer resources.

Even Governments now want more for their funding dollar - more outcomes, more collaboration, more partnerships, more reporting, more data recording, but with smaller administrative overheads. NFP's are practised at doing a lot with little, however, I recently read a State Government grant tender where the administrative margin was set at a maximum of 7% - how is it even possible to run a program at that percentage.

I'd love to hear your experience.

How are your organisations dealing with this? Is there a risk Governments are taking this so far that the NFP sector is at risk?

The Western Australian Public Sector Commission have released new resources aimed at those sitting on Western Australian Government Boards and Committees, including a self-paced "e-learning for Board Members" tool, and an updated "Governance Manual for Western Australian Government Boards and Committees."

While not everything is relevant to other Not-for-Profit Boards and Committees, it is always a great learning opportunity to look at things from a different perspective.

Link to these tools is in the comments.

"Stakeholders have now been witness to what is possible, and what can be achieved quickly, when an organisation’s WHY becomes big enough (COVID-19 created a massive WHY). Stakeholders, having been witness to this, will now create some of their own big WHY’s moving forward, and will expect organisations to become even more adaptive, embrace change even faster and develop organisations in directions not yet thought of."

Would welcome your feedback and thoughts in the comments.

Stakeholder Expectations Are Changing In the past 4-6 weeks we have seen most organisations re-evaluate their business models and restructure quickly. I am aware of many businesses who have had to shut their doors and have witnessed the social, economic, emotional and health impact this has on so many.

I believe providing autonomy to your staff that desire it can be one of the greatest motivators there is - however it must be done well to be successful.

In my latest article I provide a checklist of 9 items that will assist you in successfully providing your staff with autonomy.

As always I welcome your feedback and thoughts. Any additions to the checklist?

Providing Staff with Autonomy - 9 Steps I read a great post earlier today by Anthony Bonnici that spoke of number of drivers/motivators of people in the workforce - achievement, security, affiliation, recognition etc. Anthony also spoke of power as a driver and I wanted to expand on that concept.

𝗪𝗵𝗼 𝗗𝗲𝗳𝗶𝗻𝗲𝘀 𝘆𝗼𝘂𝗿 𝗡𝗙𝗣 𝗖𝘂𝗹𝘁𝘂𝗿𝗲?
Given culture in not-for-profit organisations is so critical to their success, why do so many of their Boards not define, steer and monitor their culture?

Who Defines Your NFP’s Culture? | Not-For-Profit | TakeControl Solutions I doubt anyone would argue that a strong culture is critical to the performance and productivity of an organisation.  Culture sets and communicates the ex

𝗔𝗜𝗖𝗗 - 𝗡𝗼𝘁-𝗙𝗼𝗿-𝗣𝗿𝗼𝗳𝗶𝘁 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝟳
𝘼𝙘𝙘𝙤𝙪𝙣𝙩𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙖𝙣𝙙 𝙩𝙧𝙖𝙣𝙨𝙥𝙖𝙧𝙚𝙣𝙘𝙮

The board demonstrates accountability by providing information to stakeholders about the organisation and its performance.

- The organisation’s governing documents and policies relevant to its governance are available to stakeholders
- The board oversees appropriate reporting to stakeholders about the organisation’s performance and financial position.
- Transactions between related parties, if any, are disclosed to stakeholders.
- Directors’ remuneration and other benefits, if any, are disclosed to stakeholders.
- Members have the opportunity to ask questions about how the organisation is run and to hold the board to account for their decisions.

As published by the Australian Institute of Company Directors - https://lnkd.in/gvpZCUy

The 𝗧𝗮𝗸𝗲𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 Blog can be found here https://lnkd.in/gwgRFQT

𝗔𝗜𝗖𝗗 - 𝗡𝗼𝘁-𝗙𝗼𝗿-𝗣𝗿𝗼𝗳𝗶𝘁 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝟲
𝙋𝙚𝙧𝙛𝙤𝙧𝙢𝙖𝙣𝙘𝙚

The organisation uses its resources appropriately and evaluates its performance.

- The board oversees appropriate use of the organisation’s resources
- The board approves an annual budget for the organisation
- The board receives and considers measures which evaluate performance against the strategy
- The board oversees the performance of the CEO
- The board monitors the solvency of the organisation

As published by the Australian Institute of Company Directors - https://lnkd.in/gvpZCUy

The 𝗧𝗮𝗸𝗲𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 Blog can be found here https://lnkd.in/gwgRFQT