Do you sit on a community committee or not-for-profit (NFP) board, or are you considering joining one?

Many people take on these roles with a passion for making a difference, but do they fully understand their responsibilities?

Serving on the board or management committee of a community organisation or NFP is a valuable way to contribute.

While the role can be rewarding, it also comes with important legal and governance obligations.

A key responsibility of board members is ensuring that the organisation complies with relevant laws, regulations, and its own governing documents.

Governance is not just about oversight; it involves making strategic decisions, ensuring ethical leadership, and fostering transparency.

Financial oversight is another crucial duty, as boards must ensure sound budgeting and long-term sustainability.

Without careful financial management, even the most well-meaning organisations can find themselves in difficulties.

Have you considered whether your organisation is meeting its workplace health and safety (WHS) obligations?

If a community group or NFP employs staff or works with contractors, it must provide a safe and supportive environment.

Similarly, risk management is vital, and identifying potential challenges early helps protect the organisation and the people who rely on it.

Maintaining accountability and transparency is also crucial, ensuring the organisation remains open, ethical, and responsible to members, donors, and stakeholders.

While a not-for-profit or community group may not operate for financial gain, it still functions within a legal framework.

Board members must ensure sound financial management, follow workplace safety regulations, and maintain ethical leadership.

The misconception that NFPs are free from legal risks can lead to serious consequences.

Failing to meet governance obligations can result in financial penalties, reputational damage, and legal liability for board members.

Examples of local NFP organisations such as Gerringong and Kiama Surf Life Saving Clubs play a vital role in the community by providing essential water safety services and education.

The Kiama and District Business Chamber supports local businesses through networking and advocacy, while Kiama Community College offers training programs that benefit the broader community.

Service organisations like Kiama Lions Club and advocacy groups such as Minnamurra Progress Association help strengthen local initiatives and ensure community voices are heard.

Historical and cultural organisations, such as Gerringong and District Historical Society, work to preserve the area’s rich heritage, while environmental groups like Landcare focus on sustainability efforts.

Emergency service groups, including Kiama SES, play a critical role in disaster response and preparedness.

Community events, such as the Kiama Show, coordinated by the Kiama Show Society, celebrate local agriculture and rural traditions.

For those looking to support health and wellbeing, Kiama Men’s Shed provides an inclusive space for men to socialise, learn, and contribute to community projects.

Does your board or committee have the right mix of skills and experience?

Passion is essential, but board members must also surround themselves with individuals who complement their knowledge.

Having financial expertise within the team is critical, ensuring someone understands budgeting, financial reporting, and fundraising strategies.

Legal and compliance knowledge is equally important to navigate regulations and mitigate risk.

Strategic thinkers who can plan for the long term, as well as individuals experienced in community engagement, can significantly strengthen a board.

Joining a community or NFP board can be a fulfilling experience, but preparation is key. Have you familiarised yourself with the organisation’s goals, constitution, and structure?

Have you reviewed financial reports and governance policies?

Does your organisation have appropriate insurance, such as Director & Officer (D-and-O) liability coverage?

Being part of a community or NFP board is both a privilege and a responsibility.

Those who take on these roles should not only bring passion but also ensure their board is well-equipped to meet the demands of governance.

A successful board is one that embraces a collaborative approach, values expertise, and ensures the organisation is built on a foundation of strong leadership and accountability.