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Good Governance – What’s Involved?

Performance of Your Organisation

Whatever your organisation’s size or purpose, a board is responsible for its overall performance. You need to know if the organisation’s resources are being used efficiently and effectively.

Identify some key performance indicators (KPIs) or key result areas (KRA) to track progress.  They should be linked to your strategic plan and be a mix of financial and non-financial measures.

Measures should be:

  1. Meaningful to your organisation
  2. Capable of being measured and acted upon
  3. Timely
  4. Cost effective to produce
  5. Capable of allowing comparisons (eg over different timeframes, between projects, with external benchmarks).
  6. Simple (where possible).

KPIS are easier to identify if your mission and goals are clear, achievable and measurable.

KPIs could be related to:

a). Fundraising (eg Fundraising from donors; donations and donor growth; fundraising return on investment (ROI – comparing the number of dollars coming in per dollars spent on fundraising).

b). Marketing and Communications (eg number of website page views, email opens and click-through rates, number of newsletter subscribers).

c). Programme/Service Delivery (eg number of clients serviced, programmes/activities attended, satisfaction rates; pre and post scores measuring changes in knowledge, skills; abilities, behaviours).

d). Human Resources (eg employee retention rate; employee satisfaction rate; percentage of performance goals met; absenteeism rate).

e). Financial – (eg year over year growth; operating surplus/deficit).

Audit and Risk Committees

An audit and risk committee can be a powerful advisory group to help an organisation manage its risk. By applying external, independent perspectives to the risks, issues, and challenges facing an organisation, the committee can help the organisation to manage the variability of its delivery of outputs, impacts, and outcomes. The Office of the Auditor General has a wide range of information about audit committees here including principles and tools and tips.

Resources

See this blog on ‘20 KPIs for your Nonprofit to Track’- it includes how to measure and calculate them. 

https://donorbox.org/nonprofit-blog/kpis-for-your-nonprofit/

Programme/Service Delivery – For more information on social impact KPIs see this blog “Measuring Nonprofit Social Impact: A Crash Course

https://donorbox.org/nonprofit-blog/measuring-nonprofit-social-impact/

A major research report looking at how value is measured in the non-profit sector in Aotearoa New Zealand.

https://sportnz.org.nz/managing-sport/search-for-a-resource/news/true-to-label