This article originally appeared in the Institute of Community Directors Australia’s monthly newsletter, Community Directors Intelligence, and is published here with their permission.
'For charities and community organisations, a focus on purpose is essential.’
By Sue Woodward AM, Commissioner, Australian Charities and Not-for-profits Commission
As we enter 2026, charities and community organisations are navigating an environment that continues to grow in complexity and unpredictability. Social cohesion is being tested, both locally and globally. Australian communities are under strain as they face more frequent extreme weather events and natural disasters. More widely, many people continue to struggle with ongoing economic pressures. Our ageing population is reshaping volunteering trends, creating new challenges for organisations that rely heavily on community participation.
New questions are emerging for charities and community groups
How do we best reach young people with our services? What is a “right size” way for our small volunteer charity to manage risks like cyber security, screening checks and sending money to overseas partners?
I believe charities and community groups matter now more than ever.
The sector has been a force for unity in Australia − bringing people and communities closer together, supporting those facing hardship, and working on community issues in creative and locally meaningful ways. Trusted, evidence-based research and advocacy also place charities at the forefront of major social issues. Their thought leadership strengthens social connectedness and improves quality of life. To do its best work, the sector needs the trust and confidence of those it serves: the public.
Trust and accountability growing as shared responsibilities
As the regulator, the Australian Charities and Not-for-profits Commission (ACNC) plays an important role in supporting confidence in the sector. But trust is not something that can be regulated into existence. Accountability and integrity are responsibilities shared between charities and the ACNC.
Every charity contributes to maintaining trust through the way they do their work. The ACNC’s “Governance Standards” are important guard rails, but each organisation’s leaders should be applying an ethical lens to their decision making. They must ensure their actions align with their mission and with community expectations.
The scale and breadth of the sector’s contribution affirm why trust matters. Our latest Australian Charities Report showed record revenue of $222 billion and 1.54 million employees – 10.7 per cent of Australia’s workforce. But donations have almost flatlined, and this disproportionally affects smaller charities.
Volunteers remain at the heart of the sector
Our recent report Charity by Numbers: The volunteer effect shows that around 22,000 organisations across Australia are run entirely by volunteers. Most are small or extra small, and together they generate around $4.3 billion in revenue (these figures are from the 2023 reporting period).
These volunteer-run charities are the quiet achievers of the sector, embedded in their communities or working on niche but important issues, such as supporting people with rare diseases. Yet these organisations also face particular pressures, often feeling the load of regulatory compliance requirements more acutely.
When the pressure lands hardest on volunteers, the strongest response is to support them. I encourage charity and community directors to regard training and support for boards and for paid and volunteer staff as an investment, not an optional extra. Recognising and resourcing these people helps sustain your organisation. Volunteers are a strategic asset, and it is competitive to recruit and retain good people. Fortunately, there are many free or low-cost training and resource options available.
Equip your team with the right tools
Supporting your people also includes giving them the tools they need to do their work effectively. Increasingly, artificial intelligence, analytics and automation offer opportunities to scale impact – helping organisations reach more people, personalise support, and free up time for mission-critical work. But with these opportunities come risks. Data breaches and fraud aren’t theoretical anymore, they are happening to charities of all sizes. When they do, they damage trust, interrupt services, and expose vulnerable people. Good training and broader data governance are now core board competencies.
Start the year with good governance essentials
It’s not glamourous, but the start of a new year is an ideal time to check that your governance fundamentals are in order. Perhaps you have some new board members, which makes this an even better time to check in with their fresh eyes.
For charities and community organisations, a focus on purpose is essential. The purposes set out in your constitution should be reviewed regularly, and the start of the year is a good time to carry out such a review. Your stated mission should be used as the reference point for your important decisions. But if your mission has drifted, notice it – and realign.
Keeping accurate and clear records is critical
Good record keeping demonstrates accountability to donors, beneficiaries, regulators and the broader community. It provides a clear picture of decision-making, financial management and compliance with legal obligations. In short, it tells the story of your work and impact. That story matters. It supports transparency, builds confidence and helps attract and retain donors, volunteers, staff and board members. It also enables charities to meet obligations efficiently and manage risk effectively, including (for registered charities) completing the ACNC’s Annual Information Statement.
We focus on record-keeping because weaknesses in this area frequently point to broader governance failures. In an ACNC survey of charities overdue in lodging their first Annual Information Statement, nearly half identified poor record-keeping as the cause. Investing in record-keeping strengthens governance and supports long-term sustainability.
As a sector, we must continually reinforce our commitment to integrity, accountability and excellence. By working together – grounding decisions in purpose, good governance and transparency – we can strengthen public confidence and ensure Australia’s charities and community groups continue to play their vital role in supporting communities, enhancing social cohesion and making a meaningful difference.