believes that being a member of the governing body of a Christian church,
charity or not-for-profit organisation is a vital and serious role, and one
that should be pursued out of altruism and commitment to the purposes of the
organisation, rather than for personal financial gain.
At the same
time, CMA recognises that in very large organisations, or in special high-risk
sectors, the degree of skill, the associated risks, and the time commitment
needed to properly fulfil an onerous governance role means that a prohibition
on remunerating members of the governing body may seriously limit the pool of
candidates, and thus diminish the overall governing effectiveness of the
recognition of this tension, CMA has determined that the following policies
must be followed in order for certification to be permitted:
members of the Governing Body
- As a general rule, no member of the governing body may
receive, either directly or indirectly, any salary, wages, or other amount for
performing their governing role. This shall not preclude the reasonable reimbursement
of expenses incurred by members in meeting their governing obligations
- The exception to
#1 is members who are also paid staff of the organisation, such as the CEO or
CFO. The payment of a staff salary shall not be grounds for exclusion from the governing
body under #1.
- A further exception may be for very large, complex
and high revenue organisations where the members of the governing body are
required to make very significant commitments of time as part of their role.
Members of the Governing Body as Consultants
- Whenever a member
of the governing body or a firm that a member has a material relationship with is
engaged in a paid consulting role by an organisation, the details of the consulting
agreement must be documented, disclosed to and approved by the full governing
body, signed by the chair or an authorised member, and recorded in a register
for periodic review.
- Whenever such
consulting agreement exceeds the total amount of $10,000 in a single financial year,
the governing body must take such steps as may be appropriate to assure
themselves that the fee is reasonable in terms of market comparisons.
- The organisation must annually disclose the total
amount paid under #1, and (separately) the total amount paid under #4, in its
annual report, or in whatever publication is used as the vehicle to communicate
annual results to supporters and stakeholders.