Good governance in meeting the duties of directors of charities and not-for-profits

Various jurisdictions in Canada and the United States have been looking at developing tougher corporate governance laws since the collapse of Enron and Worldcom. Accountability requires good governance from the not-for-profit and charitable sector as much or more than in the for-profit sector. In the for-profit sector, corporations are primarily accountable to their shareholders for the ability of the corporation to return a profit. In the not-for-profit and charitable sector, however, organizations are accountable to their members as well as to the general public. This summary outline examines the role of good governance in achieving accountability to a not-for-profit and charitable corporation’s members, stakeholders, and the public.