Strengthening Nonprofit Governance

Marivic Españo, FICD

Life Fellow

Institute of Corporate Directors

In the Philippines, governance is often associated with large corporations—especially publicly listed companies where shareholder value, regulatory compliance, and financial performance dominate the conversation. In that environment, governance is viewed as a mechanism that protects investors, strengthens transparency, and guides management toward responsible decision‑making.

But governance is not exclusive to the corporate sector. Its core principles—accountability, fairness, transparency, and strategic leadership—are equally essential for all organizations, especially those that exist for public service rather than profit.

For NGOs, governance is even more critical because their operations rely heavily on trust—trust from donors, volunteers, communities, and beneficiaries. Trust is the sector’s most valuable currency. When decisions are principled, transparent, and aligned with mission, an organization strengthens its credibility and deepens stakeholder support.

Moreover, while NGOs do not aim to generate profit, they still require financial resources to sustain programs, support staff, and maintain systems. This is where the board’s strategic role becomes indispensable: ensuring that the organization remains mission‑driven while also achieving financial sustainability.

Today, many NGO boards in the Philippines are still unfamiliar with the full scope of their responsibilities. Except for large corporate foundations or well‑established NGOs with foreign or multilateral funding, most organizations struggle to attract trustees with expertise in governance, finance, fundraising, or strategic planning. And because trustees serve as volunteers, they often have limited time to study reports, join committees, or engage deeply in strategic issues. As a result, many boards become ceremonial, leaving the Executive Director to shoulder most decision‑making.

When this happens, the Executive Director or head of the organization often becomes the de facto decision‑maker. While this may keep operations moving, it places too much responsibility on one person and limits the board’s ability to provide oversight, direction, and long‑term stewardship.

This must change. Boards need to evolve into genuine stewards of mission, not symbolic bodies. This requires rethinking how organizations recruit, prepare, and support trustees so they can fulfill their governance role effectively.

Encouragingly, efforts to strengthen NGO governance are gaining traction. The Philippine Council for NGO Certification (PCNC) continues to run its Essentials of Good Governance program across Metro Manila, Visayas, and Mindanao, consistently drawing strong participation from diverse non‑profits. The Institute of Corporate Directors (ICD) supports this initiative and continues its broader advocacy to uplift governance standards in the NGO sector. Additionally, ICD is launching the Professional Trustees Program for NGOs, which aims to equip current and aspiring trustees with the mindset, tools, and frameworks needed for effective governance.

Given the vital societal role NGOs play—from education and health to disaster response and community development—and the importance of maintaining public trust, it is imperative that future trustees meet clear qualifications in governance training and experience. Strengthening trustee capability is not only an organizational requirement; it is a responsibility to the communities NGOs serve.