AN EVALUATION OF THE EFFECTIVENESS OF GOVERNANCE BOARDS OF SELECTED NOT – FOR – PROFIT ORGANIZATIONS (NPO’S) IN NAMIBIA

Abstract

Governance is defined as "the act of establishing and monitoring the long-term direction of an organisation through policy" (Alberta Culture and Community Spirit, 2008: 31). Consequently, good governance and code of good practices have become topical issues in organisations. Besides, good governance entails a thorough knowledge of all factors, both internal and external, which dictate the success of an organisation. It is consequently that the legal implications of establishing and maintaining an organisation are the responsibilities of the board. If a not-for-profit organisation (NPO) is not complying with legal provisions, the directors of the board are accountable. However, boards or trustees in the NPOs are largely volunteers. Unlike their counterparts in the private sectors and state-owned enterprises (SOE) in Namibia, NPO boards are not readily paid sitting allowances or preparation and retention fees. However, most NPOs reimburse travel, accommodation and lodging costs, while others do not pay at all. Despite this difference in remunerations, all boards/trustees are expected to discharge their functions and fiduciary responsibility; making decisions in the best interest of their respective organisations and ensure them to be good corporate citizens.