ACNC 2026-27 regulatory focus areas: What directors of charities need to know

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The Australian Charities and Not-for-profit Commission’s (ACNC) 2026-27 regulatory focus areas give charities a clear signal of where governance attention is needed most. While annual reporting remains important, the regulator's latest priorities point to broader risks around governance documents, partnerships, record keeping and board oversight.

The ACNC continues to take a proportionate, risk-based approach. Its preference is education, guidance, and early intervention, with stronger action reserved for serious misconduct, deliberate non-compliance or risks to vulnerable people, significant charitable assets or public trust.

Focus area one: Governing documents

Governing documents — including constitutions, rules and trust deeds — sit at the centre of a charity's governance framework. The ACNC is concerned many are outdated, poorly understood or no longer aligned with how charities operate in practice.

Common issues include documents that are:

  • Outdated and no longer reflect current operations
  • Inconsistent with a charity's activities or structure
  • Missing important governance provisions
  • Poorly understood by Responsible People
  • Not followed in practice.

These gaps can lead to disputes, unclear decision-making, membership issues and compliance risks. In some cases, an outdated governing document may even affect a charity's ongoing eligibility for registration. Boards should ask one practical question: Does our governing document reflect how we operate today?

Growth, new services, changed funding, mergers, and modern governance expectations can quickly make constitutions unfit for purpose.

Focus area two: Working effectively with partners

Many charities now deliver services through partnerships, consortiums, auspice arrangements, subcontractors, and shared service models. These arrangements can expand impact, but they also increase governance and compliance risk.

The ACNC expects charities to:

  • Conduct appropriate due diligence before entering partnerships
  • Ensure arrangements are properly documented
  • Clearly identify responsibilities and accountabilities with partners
  • Monitor partner performance and compliance
  • Establish processes for reviewing and, where necessary, ending partnerships.

Boards should not assume that outsourcing activities transfers accountability. Directors remain accountable for how charitable resources are used.

Key board questions to consider:

  • Do we undertake documented due diligence on significant partners?
  • Are partnership agreements current and clearly documented?
  • Do we regularly monitor outcomes and compliance?
  • Have we assessed potential conflicts of interest?
  • Is the partnership aligned with our charitable purpose and values?

Other regulatory themes to remember

Beyond the two formal focus areas, the ACNC continues to emphasise several recurring governance risks.

  • Effective record keeping: Poor records often point to broader governance weaknesses. Strong financial and operational records support transparency, accountability and good decision-making.
  • Governance standards compliance: Boards must maintain oversight, manage conflicts, ensure accountability and support effective decision-making.
  • Overseas operations and external conduct: Charities operating internationally, or sending resources overseas, need strong risk management, due diligence, partner oversight and compliance with the External Conduct Standards.

What boards should do now

The ACNC's focus areas should be treated as early warning signs of broader sector expectations. Practical actions include:

  1. Reviewing constitutions, trust deeds and other governing documents to ensure they remain current and fit for purpose
  2. Assessing whether governance practices align with governing document requirements
  3. Undertaking due diligence reviews of significant partnerships and collaborative arrangements
  4. Ensuring partnership agreements clearly define responsibilities, reporting obligations and termination provisions
  5. Reviewing record-keeping practices for both financial and operational records
  6. Reassessing board governance frameworks against ACNC Governance Standards.

Final observations

The message is simple: strong governance underpins public trust.

Charities that keep governing documents current, oversee partners effectively, and maintain sound records are better placed to build trust, manage risk, demonstrate accountability, and deliver sustainable impact.

Key ACNC Resources

How BDO can help

BDO can assist with governance document and framework reviews, partnership assessments, and compliance readiness. An independent review can help identify gaps before they become regulatory concerns.

For more information, contact Elizabeth Blunt, Not-for-Profit National Leader, or your local BDO adviser. Elizabeth leads BDO's national not-for-profit industry group and works with charities, foundations, member associations, sporting organisations and community service providers across Australia.

Key takeaways

Governing documents are a regulatory focus area
  • The ACNC is concerned that many constitutions, rules and trust deeds are outdated, poorly understood or no longer reflect how charities operate.
Boards remain accountable for partnership risks
  • The ACNC expects charities to undertake due diligence, clearly document partnership arrangements and monitor partner performance, with accountability remaining with directors.
Record keeping and governance oversight remain key priorities
  • The ACNC continues to emphasise record keeping, governance standards compliance, and oversight of overseas operations as ongoing governance priorities.

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