Administration for not-for-profit organisations

Quality governance has never been more important for NFPs. Australia’s charity regulator, the ACNC (Australian Charities and Not-for-profits Commission), requires charities to meet core governance standards, operate lawfully, and run responsibly. In recent years, the ACNC has sharpened its focus on compliance. Serious mismanagement or repeated failures can even lead to fines or loss of charity status.

Beyond basic compliance, board members are striving for better governance overall. This means actively managing risk, adopting clear internal policies, and building diverse, skilled boards. There’s also greater emphasis on transparency, with openness about how funds are used and the outcomes achieved. These measures help maintain public trust and keep the charity on track to fulfil its purpose.

Administration covers a range of essential tasks that keep an NFP running smoothly. These include:

• Financial management and reporting: Budgeting, bookkeeping, ensuring funds are used properly, and preparing timely financial reports and audits.
• Compliance and record-keeping: Filing required returns (like the Annual Information Statement), keeping ABR information up to date, and complying with fundraising, tax and other legal obligations on schedule.
• People management: Handling payroll and HR for staff, coordinating volunteers, and ensuring a safe, fair workplace. There’s now a greater emphasis on formal HR policies, volunteer support and staff wellbeing.
• Technology and data: Maintaining secure IT systems, protecting data privacy, and using up-to-date tools (like cloud accounting or donor databases) to work efficiently.

Even well-run not for profits can hit administrative snags and common pitfalls often present as:

• Skimping on admin: Running on bare-bones support might save money in the short term, but often backfires, leading to errors, burnout or compliance issues. A common misstep for many NFPs, even the organised ones, is failing to keep information about associates, directors and public officers up to date on the ABR. Weak financial oversight: Without proper checks and balances, problems like inaccurate accounts or even fraud can go unnoticed. Basic internal controls and regular financial reviews are a must.
• Missing compliance obligations: Busy NFPs sometimes miss reporting deadlines or fail to meet requirements. Late filings or breaches, whether with regulators or funders, can bring penalties and reputational damage.
• Outdated practices: Operating without clear policies or clinging to old processes can hold an organisation back and increase the risk of things going wrong.

To build a stronger organisation, consider these strategies:

• Embrace technology: Cloud systems and automation can streamline tasks, save time and reduce errors. Just be sure to pair new tools with solid cybersecurity practices.
• Invest in people and culture: Ensure your team (including the board) has the training and support needed. A culture of transparency, accountability and continuous learning goes a long way.
• Seek expert help: If you lack certain expertise, consider outsourcing or consulting professionals. An experienced accountant or adviser can help set up effective systems and lighten your team’s load.
• Plan for sustainability: Be proactive about risk management and long-term planning. Document key processes, maintain backups for critical roles, and build financial reserves, if possible, to weather unexpected challenges.

In 2026, effective administration isn’t just “overhead” to minimise. By focusing on good governance, organisations will be well equipped to meet their own and the external expectations of their mission. Every dollar and hour invested in sound administration helps charities deliver more to the communities they serve.