Fact Sheet: How the Members, Board and Staff operate within a Member-owned Peak Body

The NSWFDCA is a member-owned Peak body that represents and advocates on behalf of Family Day Care educators and services. The Association is owned by its members who have a say in governance by attending Annual General Meetings and voting for members of the Association’s Board.

KEY FEATURES OF A BOARD-LED, MEMBER-OWNED PEAK BODY

  1. Members shape the direction of the organisation through governance structures.
  2. Board members are often sector peers who are experienced in Family Day Care and passionate about its future.
  3. Operates with a strong values base, grounded in children’s wellbeing, educator support, and community care.
  4. Decisions are informed by consultation, collaboration, and consensus-building.
  5. Often involved in policy submissions and government liaison.

BENEFITS OF A BOARD-LED, MEMBER-OWNED PEAK BODY

  • Deep sector legitimacy – members feel ownership and connection.
  • Enables strong, unified advocacy on behalf of the Family Day Care community.
  • Draws on the real-world experience of both Board and members.
  • Promotes democracy and accountability in governance.
  • Helps preserve the unique identity and values of the Family Day Care sector.

CHALLENGES

  • Balancing representative governance with professional operational management.
  • Avoiding “operational creep” by the Board while remaining deeply connected to members.
  • Managing diverse member needs and expectations, particularly across regions and service models.
  • Ensuring sustainability and relevance in a changing regulatory or funding environment.
  • Maintaining strong communication loops between Board, staff, and members.

ROLE OF THE BOARD WITHIN A MEMBER-OWNED PEAK BODY

  • The board is elected by the members and is accountable to them.
  • Duty to act transparently, responsibly and in the best interest of the organisation’s purpose and its membership.
  • Provides strategic leadership and ensures the organisation reflects the values and priorities of the Family Day Care community.
  • Oversees policy positions, advocacy strategies, and sector engagement.
  • Ensures financial sustainability, regulatory compliance, and ethical governance.
  • Hires and supports the CEO, who manages daily operations and staff.

The Board consults members on major decisions like setting or changing strategy. Outside of this, members elect the Board to make decisions on their behalf.

BOARD ACCOUNTABILITIES

The Australian Charities and Not-for-profits Commission in Governance Standard 2: Accountability to Members states a Board must:

  • Take reasonable steps to be accountable to their members, and
  • allow their members adequate opportunities to raise concerns about how the charity is run.

The Board demonstrates their accountability to members by reporting progress against the Association’s goals at the Annual General Meeting. NSWFDCA also runs member forums (currently State Committee Meetings) to seek member input and to provide opportunities for members to raise concerns and ask questions about how the Association is run.

Here is information from the ACNC as to how NSW FDCA would meet the governance standard of accountability to members: https://www.acnc.gov.au/for-charities/manage-your-charity/governance-hub/2-accountability-members

Fiduciary Responsibility: The Board must act in good faith and in the best interests of the members and the organisation. This includes:

  • Duty of Care: Make informed decisions with reasonable diligence.
  • Duty of Loyalty: Avoid conflicts of interest; act without personal gain.
  • Duty of Obedience: Ensure the organisation adheres to its mission and complies with laws and governing documents.

Transparency: Members should be informed about Strategic plans and major decisions, financial performance and use of funds, and Board actions and rationale for significant changes. Transparency can be achieved through regular reports (e.g., annual reports), open meetings, and providing clear communication channels between the Board and members.

Member Engagement and Representation: The Board should reflect and respond to member interests. If the organisation is membership-based, members have the power to  vote on key issues such as changes in the constitution and election of Board members.

Performance and Evaluation: The Board must evaluate its own performance in governance and the performance of the organisation in delivering on its mission. Poor performance or misconduct should be addressed openly, with the possibility of member input or formal review.

Legal and Ethical Compliance: The Board must ensure the organisation follows all relevant laws and regulations and operates ethically and in accordance with its constitution, strategy and policies. Failure to do so can damage trust with members.

ROLE OF THE CEO AND STAFF

  1. Deliver programs, advocacy, member support, training, and services.
  2. Act as a bridge between Board decisions and member needs.
  3. Gather sector insights to inform the Board’s decisions.
  4. Lead partnerships, stakeholder relations, and communications.
  5. Report to the Board and are accountable for the implementation of the Strategic plan.

BEST PRACTICES FOR EFFECTIVE GOVERNANCE

  • Regular member engagement and consultation.
  • Clear roles and responsibilities between Board and staff.
  • Skilled and diverse Board membership, with training and sector knowledge.
  • Transparent decision-making, underpinned by the best interests of members and sector.
  • Continuous review of strategy, impact, and alignment with sector needs.

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