Barry Baker, Partner Business Advisory Services Grant Thornton NZ answers the question: “why would you bother reviewing your policies?”
Nonprofit organizations (NFPs) in New Zealand should have their policies reviewed for several reasons, including:
1. Compliance: NFPs must comply with various laws and regulations, such as the Charities Act 2005 and the Privacy Act 1993. Having policies reviewed ensures that they are in compliance with these laws and regulations.
2. Governance: Reviewing policies helps NFPs ensure that they have effective governance systems in place. This includes ensuring that the organization is run in a transparent and accountable manner, and that its operations align with its mission and values.
3. Efficiency: Reviewing policies can help NFPs identify areas where they can improve their efficiency and effectiveness. This can include streamlining processes, reducing costs, and increasing transparency.
4. Risk management: Reviewing policies can help NFPs identify and mitigate potential risks to their operations. This can include risks related to financial management, data protection, and legal compliance.
5. Adaptation to change: Reviewing policies can help NFPs adapt to changes in their environment and stay relevant in their field.
Categories: GovernanceLegal