1. 12 May 2008 Presented by Mr. Kaka Singh, Chairman and Partner Strengthening Governance in NPOs Board’s Challenges

2. NPO Framework in Singapore Code of Governance (COG) - to restore trust & help grow the sector - Strategic Mgmt Operational Mgmt Financial Mgmt Focus Areas Enhance effectiveness of charities Promote best practices Enhance public confidence Objectives of the Code

3. Board’s Challenges BOARD’S OBJECTIVES  To grow the non-profit organisation  To attract more high calibre people to the Board PRACTICAL CHALLENGES  Punitive view of the COG - a “stick” towards NPOs?  Difficulty in cascading Board directions to operations  Cost issue – Can smaller NPOs afford fancy system like the larger NPOs ?  Talent issue – ability to find the appropriate human resources to effectively run the systems

4. Board’s Challenges: The Code – a ‘Stick’ or an ‘Aid’?  Concern : COG adds to the work load and burden on the small resource pool of NPOs  True to a certain extent, especially at the start, so it is a question of cutting the clothes according to the size of the cloth 1.COG is a good starting point and it does not take a lot to comply  Key is in channeling resources to focus on the required matter at hand rather than a broad based approach 2.COG lowers compliance cost in the long run  E.g. provides a risk-based reference to external auditors on NPOs

5. Board’s Challenges: Cascading the Board’s Directions  Board’s directions often time remain as ‘wish list’  Boils down to execution problems – major stumbling blocks include  Square peg, round holes : difficulties in adapting guidelines as most view operations as unique  Wholesale adaptation makes manual non-operational  The perennial cost and talent issue 1.Guidelines are meant especially for smaller NPOs which may have difficulties coming up with own corporate governance framework 2.Board show of support in operating team is key 3.Open 2-way communication plays an important part 4.Finding the ‘right size’ professional help

6. Board’s Challenges: Affordability Issue  Smaller NPOs think that they cannot afford a COG compliant system  Question is : can we afford not to have one?  Opportunity cost can be much higher in sponsorship opportunity loss and competition for the talent pool 1.Start small, when it is still manageable 2.Invest on a practical system, no need for a “white-elephant”

7. Board’s Challenges: Talent Issue  Realistically – the most critical  Difficult to attract talent due to steep competition 1.Step 1 - Board members play key role in bringing in high calibre volunteers 2.Leveraging on corporate initiatives in CSR – Corporate Social Responsibility 3.It’s a chicken and egg matter – put the house in order, get the right results, resources will come (from marketing angle - corporate sponsors like to be with winners ) 4.Moving towards commercial remuneration structure is long term solution to talent management issue

8. Conclusion BOARD’S OBJECTIVES  To grow the non-profit organisation  To attract more high calibre people to the Board MEETING THE CHALLENGE - step by step - 1.NPOs cannot afford not to level up 2.First things first – leverage on public aid/help provided 3.Board members must work a little hard at the start – the fruits will come 4.Partnership with commercial companies is key to sustenance and growth but – NPOs must position themselves : everyone loves a winner!

9. THE END