Organisational Structure

Understand and explore the governance and management structure of organisations.

Authored by: iClick2Learn Team

Translate Text

– Okay, so let’s look at the structure of a nonprofit organisation. And, you know, to some degree, there are a lot of similarities between nonprofits and corporates in how they’re actually structured. Probably a note here is that there’s a very big difference between organisations that are resourced and have staff and organisations like many of the event committees, for example, where there is simply just a committee and they are the whole organisation. So the example I’m using is a well-resourced organisation. So some of these may not apply, but it’s better than putting up a simple example where there are some gaps for many of you. So, why does an organisation exist? It exists, obviously, because it’s there to deliver a purpose. But ultimately it’s there because it has a member base of people that want that organisation to exist. Now, membership can be just the board, it could be four, you know, you need a minimum of three, for example, in New south Wales, three directors, five directors for some legislation, so, you know, it could be seven people who are just board members, and they’re the only legal members of the organisation. Or you could have everybody in your local government area is a member, or you have a paid membership structure, and perhaps you’re a nonprofit daycare centre and all of your parents are members of the organisation. There’s no right or wrong here. There are general rules and guidelines, but it’s what works best for your organisation. So what happens every year is we have an annual general meeting, and those members using their voting powers, they then vote in the board. And what they do is they actually transfer or what we call delegate, they delegate the powers, the governing powers of the organisation to the board. So they assign these people, I’m giving the power as a member for these people to govern the organisation and to run that organisation with the best interest of the organisation at heart and for proper purpose. So just some legal terms we’re using there which we’ll explain in, if you’re interested in the subject, you can explore further. So they vote in a board, and the board naturally has an executive committee. Now the executive committee are primarily what we call position holders. So that’s the president, the vice president, you might use chair and vice chair, the secretary and the treasurer, and they’re really the position holders. Now, obviously the other members are, they may be appointed based on the skillset, they may be appointed as a representative so you might have a council representative on board, but in the eyes of, in terms of legislation, the regulator, it’s the position holders. If it’s a Commonwealth legislation, let’s just say the Corporations Act, it would be company secretary, but just take care because some of those position holders also delegate some authority for the running of some of their positions if they’re resourced to the CEO or to the head honcho of the organisation, it might even be a coordinator in your group. So, they vote in an executive and the executive of the position holders. Now, depends on how you run your idea, there’s couple of different ways to run up, there’s no right or wrong. In this case, we’re saying the executive make part of the board, and of course we have a chair person or a president, if you use that term. So, really that’s where governance stops, okay? So that’s really governance. Governance, these key positions. Our CEO of course influences this and is involved in the governing of the organisation, but this is operational, this is the operational side of the organisation. So we have our CEO, our chief executive officer, our executive officer, our coordinator, our manager, whatever term you use to describe the head person. For some of you, you don’t have this next line up, all you have are the volunteers, but for others, you will have those layers. So CEO, who then oversees and manages senior staff, who may oversee and manage volunteers and other staff. So that’s really, if we looked at these, this is really the layer of accountability and responsibility in terms of a nonprofit organisation. So there are a couple of things I just want to make a note on. Do you have some subcommittees? Now, for some of you, you may not use the term sub, you might just say committees, that’s fine, those organisations that traditionally would call themselves a committee, not a board. So of course, if they’re a committee, then any other the committee of the committee is a subcommittee, just to get you confused there . So here’s an example of some of the subcommittees. Now I’m not saying go out and create another meeting for the purposes of having another meeting, no, not at all. For small groups, you might necessarily need to take those steps. Committees should be for a reason or a season, and that’s it. What I’m talking about with a reason, let’s just say, for example, we’re a large local medical service, and, you know, we’ve got quite a few million dollars in income and revenue coming in, we need a higher degree of financial oversight. So what we’re going to do is we’re going to have a finance subcommittee, and that is quite a will adopted subcommittee or committee that a lot of nonprofits have. It just, you know, make sure we underpin that valuable risk area with some detailed oversight. And the other one may be human resources. Now, human resources doesn’t have to be a committee that continues on, it could just be established for a season, and I’ll give you an example. Let’s just say, in this case, the executive committee sit on the human resources subcommittee, or executive of the board sit on the human resources committee, but they actually only make when it’s required to do so. So perhaps their CEO has given notice, so of course they’re going to make, they’re there for a season. There’s a period of time where something needs to be addressed. So that’s an example. Risk and audit, another common one and governance is another common one on some of the larger organisations. So that’s just giving you an overview of how nonprofit organisations are structured, some lines of accountability, there’s obviously a lot more information for you to know than that, but it’s a good start.

Related posts

Board members around a table

Starting a Not-for-Profit

Thinking of launching a not-for-profit?  We dive headfirst into the world of not-for-profits. Whether you’re a seasoned philanthropist or just starting out, we go through ...
Read More →
Two people talking

Accidental Counsellor

Learn how to become a good listener, resolve emotional situations, learn about your own triggers, and how not to take things personally.
Read More →
Board members attending meeting for AGM

How to run your AGM

Watch our experts Natalie Bramble and Andrew Wright explain how to run a smooth and legally compliant AGM.
Read More →
Fundraising Plan

Developing a Fundraising Plan

Watch this recorded workshop to help you create a fundraising plan.
Read More →

Create a Sponsorship Plan

Watch this recorded workshop to help you create a sponsorship plan.
Read More →

How to Develop a Logic Model [Course]

A logic model is a structured process to use to plan and assess your organisations purpose and what you are doing to achieve that purpose. ...
Read More →

Social Impact

Watch our two not-for-profit experts and learn what social impact is and how to identify the difference you make.
Read More →

Develop Your Event Plan

This workshop will help you create an outline of your event that you can use to start obtaining sponsorship funding, applying for grants and getting ...
Read More →

Approving Your Budget

Learn what information is contained in a budget, red flags to look out for, and questions to ask before voting to approve a proposed budget.
Read More →
Collaboration to increase opportunities

5 Tips for effective meetings

Hear governance expert Natalie Bramble’s top 5 tips for effective meetings.
Read More →
Board Assessments

Board Assessments and Evaluations: An Introduction

Good boards aren't an accient. To keep them on track, t's helpful to have regular assessments and evaluations of their performance.
Read More →
Legal Structures

Legal Structures

Understand and explore the governance and management structure of organisations.
Read More →
People Structure Tree

Organisational Structure

Understand and explore the governance and management structure of organisations.
Read More →
Coffee mug in front of computer screen

Governance and Your Organisation

Good governance is essential for the health and efficacy of not-for-profits.
Read More →
calculator

3 Essential Financial Documents

Learn about your not-for-profit’s three essential financial documents and how they can support good governance, accountability, and transparency.
Read More →
sticky paper

Staying On Top of Your Financials

Staying on top of financials helps your organisation keep accountable. Learn how your whole committee can better understand your financial status.
Read More →
ladies on meeting

Informed Decision Making in Your Not-For-Profit

How does informed decision-making lead to better governance in not-for-profits? This simple checklist will help your organisation make better decisions.
Read More →
boys writing notes

What is a Code of Conduct and Why Do You Need One?

Our code of conduct articulates your organisation’s core values. It also establishes ethical and behavioural standards for members and employees.
Read More →
Group of people looking at constitution

Getting to Know Your Constitution

Your not-for-profit’s constitution is an essential governing document. As your organisation changes, your constitution might change too.
Read More →
People discussing

Governance Risks for Service-Based Organisations

Service-based organisations like childcare services and neighbourhood centres face unique governance risks. Check our list here.
Read More →
Volunteers discussing about Governance risk

Governance Risks for Community and Grassroots Organisations

Community and grassroots organisations have unique governance risks. But good governance creates a positive, accountable culture.
Read More →
Taking Minutes

How to Take Meeting Minutes

Have you ever been asked to take minutes at a meeting and panicked because you didn’t know what to do? The take a deep dive ...
Read More →
Membership Application Form

Membership Application Form

Your membership application form will help you manage eligibility; compliance to the rules and voting rights!
Read More →

Committee Nomination Form

This form will help you manage the committee member nomination process at your AGM.
Read More →
Board members around a table

Questions to Ask Your Board [Course]

If you’re new to a committee or board, or a long-time member this course will go over the foundational essentials you really should know to ...
Read More →
General Meeting

Strategic Planning [Course]

This recorded advanced webinar workshop on strategic planning is suitable to service based boards.
Read More →
General meeting

Can Members Request a General Meeting?

A discussion about can members request a general meeting of the organisation?
Read More →
Due Diligence

Due Diligence

9 steps to understand your roles and responsibilities on a committee or board [Video Series]
Read More →
Legal Obligations

Boards and Committee Legal Obligations

It’s essential you know and understand your legal obligations as a committee member.
Read More →

Incorporation: Step by Step

In this article we’ll discuss what incorporation means and guide you through the steps to become incorporated.
Read More →
error: This content is protected !!
Scroll to Top

Welcome

What you have already seen is just a small sample! There are loads more videos, in-depth courses, and content included in our library membership to
develop your skills. Let us show you!

Get access to the full library