Voluntary Governance (VG) in the Not-for-Profit Sector: The Model for Retention and Recruitment of Boards of Directors

Abstract

This research seeks to explore the current type of Voluntary Governance (VG) mechanisms used to monitor and control Not-For-Profit (NFP) entities at the Board of Directors (BOD) level. It uses case study analysis to investigate the Model rules for NFP Directors. The questions explore the Board and governance mechanisms for NFPs, particularly focusing on the value added by Voluntary Board members, to make recommendations for reporting of Voluntary Governance by NFPs. The Global Financial Crisis demonstrated the importance of Accountability, Transparency and good Corporate Governance of all types of organizations be they Not-for-Profit (NFP) or for-profit. This research demonstrates the obligations of Voluntary Directors in terms of legislation, common law duties and equitable fiduciary duties in relation to governance, social responsibility, transparency and risk management, particularly in a sector that contributes so much to the global economies in terms of employment and GDP [1], [2].