Board self-assessment tool mapped to governance principles
Strong governance is not measured by compliance alone. It is reflected in a Board’s ability to provide clear direction, make informed decisions, manage risk and steward the organisation’s purpose over the long term. This checklist is designed by Australian Institute of Company Directors (AICD) to help small not-for-profit Boards reflect on their governance practices, identify opportunities for improvement and strengthen alignment with the AICD Not-for-Profit Governance Principles.
| When to use this checklist | How to use this checklist |
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Checklist
| Checklist item | Notes / Evidence | |
| Principle 1 – Purpose, vision and strategy | ||
| ☐ | The NFP’s organisational purpose is understood by directors, employees and volunteers. | Add notes / evidence |
| ☐ | The board has a vision and strategy document setting out the next 3–5 years. | Add notes / evidence |
| ☐ | In developing the vision and strategy, the board has considered the types and levels of risk the NFP is prepared to take on. | Add notes / evidence |
| ☐ | The board understands the resources, including employees and volunteers, that will be needed to achieve the strategic goals. | Add notes / evidence |
| ☐ | The NFP uses practical methods, such as its website, to communicate purpose, vision and strategy to employees, volunteers and key stakeholders. | Add notes / evidence |
| Principle 2 – Roles and responsibilities | ||
| ☐ | The roles and responsibilities of the board, encompassing governance, oversight and strategic direction, are documented. | Add notes / evidence |
| ☐ | Each board director understands their individual duties and obligations, consistent with relevant legal and regulatory frameworks. | Add notes / evidence |
| ☐ | The responsibilities of the management team are well understood and set out in position descriptions. | Add notes / evidence |
| ☐ | Processes such as training and induction ensure employees and volunteers understand their responsibilities, including legal requirements for working with vulnerable people. | Add notes / evidence |
| ☐ | The board understands key third-party providers, including IT software and system providers. | Add notes / evidence |
| ☐ | The board receives the necessary reports aligned with the size and complexity of the NFP. | Add notes / evidence |
| Principle 3 – Board composition and effectiveness | ||
| ☐ | The board collectively represents the diversity of the community served by the NFP. | Add notes / evidence |
| ☐ | The board has the necessary skills, experiences and perspectives to effectively govern the NFP. | Add notes / evidence |
| ☐ | New directors are given sufficient support and education when joining the board, and ongoing directors are supported with regular learning and development. | Add notes / evidence |
| ☐ | The board meets at appropriate intervals, papers are concise and insightful, and meetings are well led by the chair. | Add notes / evidence |
| ☐ | There is a clear distinction between the oversight role of the chair and the management role of the CEO. | Add notes / evidence |
| ☐ | The board formally reflects at least annually on its performance and where improvements could be made. | Add notes / evidence |
| Principle 4 – Risk management | ||
| ☐ | The board regularly discusses the NFP’s risk appetite and documents this in a concise risk appetite statement and supporting risk register. | Add notes / evidence |
| ☐ | The board has a risk management framework or policy that outlines the approach to identifying, assessing and mitigating risk. | Add notes / evidence |
| ☐ | Low-cost and practical risk controls are implemented, reflecting the nature of the risk, the resourcing of the NFP, and the frontline employees or volunteers managing the risk. | Add notes / evidence |
| ☐ | The board receives reporting that allows it to have an informed view on how risk is being managed in the NFP. | Add notes / evidence |
| ☐ | The board meets the external auditor or accountant at least annually. | Add notes / evidence |
| Principle 5 – Performance and accountability | ||
| ☐ | The board sets clear expectations about what success looks like for the NFP. | Add notes / evidence |
| ☐ | The board receives reporting that helps it understand progress against purpose, strategy, finances and key outcomes. | Add notes / evidence |
| ☐ | The NFP has appropriate financial controls and budgeting processes for its size and complexity. | Add notes / evidence |
| ☐ | The board understands whether resources are being used effectively and sustainably. | Add notes / evidence |
| ☐ | The board communicates performance and accountability information to members, funders and other stakeholders as appropriate. | Add notes / evidence |
| Principle 6 – Stakeholders | ||
| ☐ | The board understands who the NFP’s key stakeholders are, including clients, beneficiaries, funders, partners, employees and volunteers. | Add notes / evidence |
| ☐ | The NFP has practical ways to listen to and understand stakeholder needs and expectations. | Add notes / evidence |
| ☐ | Stakeholder perspectives are considered in board decision-making where relevant. | Add notes / evidence |
| ☐ | The NFP communicates with stakeholders in a clear, accessible and timely way. | Add notes / evidence |
| ☐ | The board monitors whether stakeholder relationships support the NFP’s purpose and long-term impact. | Add notes / evidence |
| Principle 7 – Sustainability | ||
| ☐ | The board considers the NFP’s financial, workforce, operational and environmental sustainability. | Add notes / evidence |
| ☐ | The board understands the external trends and pressures that may affect the NFP’s future viability. | Add notes / evidence |
| ☐ | The NFP has plans to maintain or strengthen capability, funding and service continuity over time. | Add notes / evidence |
| ☐ | The board considers sustainability when making strategic decisions and allocating resources. | Add notes / evidence |
| ☐ | The board monitors whether the NFP remains resilient and able to deliver on purpose. | Add notes / evidence |
| Principle 8 – Organisational culture | ||
| ☐ | The board understands its role in shaping and overseeing organisational culture. | Add notes / evidence |
| ☐ | The NFP has clear values and expected behaviours that support its purpose. | Add notes / evidence |
| ☐ | The board and management promote ethical conduct, accountability, safety and inclusion. | Add notes / evidence |
| ☐ | There are practical ways for employees, volunteers and stakeholders to raise concerns safely. | Add notes / evidence |
| ☐ | The board receives information that helps it understand whether the desired culture is being lived across the organisation. | Add notes / evidence |
How can we help?
To learn more about not-for-profit Board governance and how our experts in the sector can help, please contact us at info@sparkstrategy.com.au.
Sources
- Australian Institute of Company Directors, Small NFP Governance Checklist, Not-for-Profit Governance Principles – Third Edition, April 2024, https://www.aicd.com.au/content/dam/aicd/pdf/tools-resources/nfp-governance-principles/small-nfp-governance-checklist.pdf
- Australian Institute of Company Directors, Not-for-Profit Governance Principles – Third Edition, April 2024, https://www.aicd.com.au/content/dam/aicd/pdf/tools-resources/nfp-governance-principles/aicd-nfp-governance-principles-2024.pdf

Varsha Dudhwewala is a Senior Strategic Advisor at Spark Strategy, bringing a unique blend of legal acumen, financial expertise and data-driven strategic thinking. She helps NFP organisations cut through the noise of external change and competing internal priorities to identify the trends, patterns and evidence that matter most. Varsha equips leaders with the insight and confidence to make ambitious decisions grounded in fact, not assumption. She is known for her warm and engaging facilitation style, creating spaces where teams feel comfortable to share their perspectives and bold ideas.
Credentials
• Expertise in strategic research, stakeholder engagement, data analytics and insight generation
• Master of Business (Data Analytics for Business), Monash University
• Bachelor of Law (Business Law), Amity Law School
• Bachelor of Commerce (Accounting & Finance), St Xavier’s College

