Is all Governance Equal; What does Governance mean for Non Profit Organisations?

At Akira Consult, we believe #Governance is an essential (competitive) tool for all organisations and Non-Profit Organisations (#ngos )are no exception. It seems that sometimes and due to their altruistic nature NGOs do not need to have formal governance practices, or can get away with the bare minimum of appointing a few individuals as #directors to their Boards. Just because the organisation does not exist to make money, the mission that the organisation serves must still be met and for that, the need for formal governance practices to ensure that the stakeholders for who the organisation serves; be it a deserving community, generous charitable individuals and donors, staff of the NGO and indeed the country, calls for a structure that guides, directs and oversees the management of an NGO is necessary.

In Kenya, #ngos are registered and governed under the Non-Governmental Organisation Co-ordination Act 19 of 1990 and through the NGO Co-ordination Board that carries out registration. Being self-regulated, all NGOS in Kenya then under a collective forum called the Non-Governmental Co-ordination Council of Kenya which among other functions champion the intended key #values of an NGO which (should) include probity, transparency, accountability, justice and good governance.

So why does it seem that governance practices are not a priority for NGOs?
1. Regulation and #compliance – Corporates under the Companies Act by virtue of registration are expected to comply with the broad governance provisions in the Act and thereafter in separate industry guidelines.
2. Misconception of NGO activities- The governance conversation is seen to be a distraction to the overall good that the NGO and its officials are trying to do and which in most instances is the alleviation of a social problem.
3. Money matters- As most strategy thinkers have led us to believe, Corporates exist for the benefit of providing a return to its owners (shareholders). This may largely be true, but money also matters for NGOs as their return is in the form of impact. Money also matters to NGOS and governance acts as its conscience.

So if governance is key where should an NGO start on its governance journey?
1. Putting in place a Board- this should not only be a check box item, but a diverse, skilled and independent Board that can hold management accountable to ensuring the #ngo meets its objectives.
2. Ensuring the NGO has a clear vision and strategy- signed off by the Board. This acts as the blueprint in guiding management on where the organisation should go.
3. Map out #stakeholders (donors, staff, society) and ensure that their interests are aligned and taken care of as the organisation executes its strategy.
4. Upskilling- #training on strategic, management and governance practices.

We are happy to help! reach out to us at enquiries@akiraconsult.ke to elevate your governance practices today.