A range of factors influence our ability to maintain public trust and confidence in the charity sector. Some are specific to the ACNC, while others reflect broader global or sector-wide issues. Together, these internal and external influences shape how we pursue our purpose.
Regulating more charities
The number of registered charities has grown substantially – from 57,672 in June 2013 to 65,245 on 1 March 2026. This is an increase of around 7,500 charities, representing a 13% increase.
We expect the number of registered charities to continue to increase because of the self-assessing income tax exempt reforms being administered by the ATO (which commenced from 1 July 2023). The number of affected entities and the timing of applications remains unknown, which may affect our ability to register new charities in a timely manner.
We continue to work with key charity and NFP stakeholders, including peak bodies, to help streamline the registration process. We continue to promote and refine our guidance, such as our self-assessment tool, which helps NFPs to identify whether they are charitable. We also work closely with the ATO to identify and support affected NFPs.
At the same time, we need to support charities to comply with their obligations to the ACNC, including lodgment of an annual return to the ACNC (the Annual Information Statement).
As the number of registered charities grows, we are committed to finding new ways to support an increasing number of charities to meet their obligations. We have developed additional proactive strategies to follow up with and remind newly registered charities of their obligations to the ACNC. We are committed to improving service efficiency and embracing technology in line with the government’s productivity agenda, strengthening our ability to support more registered charities while delivering high-quality outcomes for charities and the public.
Trust in charities
The ACNC plays an important role in supporting trust and confidence in the charity sector; however, 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 legislation including the Governance Standards are important guard rails, but each charity must ensure their actions align with their mission.
We support the sector to better understand the level of charity governance that we expect through guidance and a variety of online tools that help charities to self-assess compliance. This is consistent with our ‘education-first’ regulatory approach, which is informed from our own learning, whether it be through learning from the experience of other charity regulators (both within and outside Australia) or via insights received from our consultation and advisory forums. We also share our insights across government.
We continually promote the Charity Register, which allows the public to check if an entity is registered with us in addition to information about that charity (including the people responsible for running the charity).
Pressures faced by charities that can affect their ability to comply with obligations
Charity resources remain stretched due to:
- increasing demand among people experiencing vulnerability, who turn to charities for help when impacted by cost-of-living pressures
- economic and societal challenges driven by local and global economic factors, geopolitical tensions and rising operational costs (including insurance premium increases and energy costs), as well as cost pressures being felt throughout supply chains and higher employee expenses associated with a tight labour market
- the resources required to recruit, support and retain volunteers.
At the same time, charities need to manage increasingly complex risk landscapes. This includes changing technologies and the risks they present, including identity, access and security, and information accuracy. Charities often hold the personal information of beneficiaries and donors. Some also hold health information, and it is important for charities to protect themselves from cyber risks and manage cybersecurity incidents.
To support the charity sector to manage risks, we publish tailored and fit-for-purpose guidance, often after consultation with other regulators and sector experts. We are committed to refining our guidance based on any new findings or insights.
The Charity Register allows the public to easily find a registered charity to support or seek support from. Charities can also use the Charity Register to find like-minded organisations to work with.
The cumulative impact and pace of regulatory reform and initiatives on charities
Charities continue to be impacted by a range of concurrent regulatory reforms across all levels of government – some that affect all sectors (the changes to access to social media, for example) and others specific to the sector (National Fundraising Principles, for example). The number and pace of these reforms have a significant impact on charities, half of which operate with no paid staff.
In the coming years, charities may be affected by several reforms, including:
- any reforms associated with government inquiries and reports
- changes to the NFP financial reporting framework by the Australian Accounting Standards Board
- a range of state or territory government initiatives.
When regulatory changes are being developed by other agencies, we will proactively share our data and insights to help ensure the impacts of potential reforms are clearly understood. Where relevant, we work with agencies to minimise unnecessary red tape for charities. We share updates and guidance to help charities to understand any new obligations, including with our consultation and advisory forums (which include state and territory fair trading regulators).