Opening statement - Senate Estimates
As we near the end of the financial year, the Australian Charities and Not-for-profits Commission (ACNC) is as busy as ever, focused on supporting charities to operate with integrity and transparency so the public and funders can be confident when engaging with them.
Since our appearance before Senate Estimates in February, we have focused on better understanding how charities manage the risks of funds being misused, including for terrorism financing. This work included charity reviews and surveys of those operating overseas, as well as hosting a forum to gain insight into their perspectives.
Around 6% of Australia’s 65,000 charities operate overseas in over 300 countries and regions, many in multiple places. We engaged these charities to hear about their challenges, knowing there is greater complexity for them. Topics included working with international partners, meeting financial management and compliance obligations, and identifying and managing risks. We coordinated this engagement with other agencies (Australian Federal Police, Department of Home Affairs and AUSTRAC) and a key sector body, the Australian Council for International Development.
In addition to our ongoing compliance work, this focused work has affirmed that the majority of charities at the greatest risk of misuse, understand the seriousness of the issue and demonstrate a willingness to comply with Australian and international laws. Importantly, their boards and staff were being supported to develop strong financial literacy skills and had comprehensive risk management procedures in place.
We know how important it is for the sector that charities are educated and competent when it comes to investing, so we launched guidance on investing charity money for financial return. With knowledge, risk mitigation strategies and a realistic plan, prudent investments can diversify a charity’s income stream while maintaining good practice in financial management. Our guidance works as a basic explainer to support those involved in charity governance to understand terminology and what they must consider for compliance with ACNC Governance Standards.
To support our own transparency, we published more de-identified registration decisions. These decisions cover topics from addressing conflicts of interest, to private benefit, to incidental and ancillary purposes, and exploring in-depth how an organisation’s activities align with its charitable purpose. Our library of decisions is a useful resource on what we consider when it comes to granting charity registration, and how we work with organisations to ensure the best outcomes.
March saw the launch of two new online resources to support good governance practices for charities. The tools focus on key functions including financial management and safeguarding ─ protecting staff, volunteers and other people connected with a charity, including vulnerable people who use charity services. The tools empower charities to work through at their own pace and embed knowledge about strong governance across their teams.
As our sector continues to evolve, we welcomed changes to streamline processes for charities that fundraise in New South Wales. As of 1 April 2026, ACNC registered charities do not need to apply for or renew a NSW charitable fundraising authority.
In May, we were joined by more than 450 for our webinar on charity reporting. We ran charities through the basics; required and recommended record-keeping, governance requirements and how to manage their obligations using the ACNC Charity Portal. At the beginning of the session, attendees rated their confidence in meeting their charity obligations with 39% saying they were neutral or not confident in their understanding. At the end of the session, we saw a substantial improvement, as 89% expressed they felt somewhat confident or extremely confident to meet their obligations. The webinar has been published on our website for charities to access at any time.
Recently, the ACNC used its powers to suspend a Responsible Person and appoint two acting Responsible People to the board of a charity. Based on work with the relevant workplace health and safety regulator, we formed the view that this was a necessary step to protect staff and volunteers from immediate and serious risks.
Looking ahead, the 12th edition of the Australian Charities Report will be published in June. The analysis of sector data brings together information from 53,641 Annual Information Statements (charity reports to the ACNC), and once again is backed by our powerful Charity Data Explorer which can be used to drill down into specifics to better understand issues and trends.
As 30 June approaches, many charities will be gearing up to submit their annual reporting. We know that amid cost of living pressures, there’s more demand for charity support than ever before. We will continue to work with charities to reduce regulatory burden and provide the resources they need to meet their reporting obligations. In doing so, we ensure their time can be best spent making a difference in their communities.
Sue Woodward AM
Commissioner
Australian Charities and Not-for-profits Commission