EOFY checklist for charities and NFPs 2026

The month of May traditionally marks the start of organisations’ EOFY requirements. It is crucial for charities and not for profit organisations (NFPs) to get a head start on their EOFY reporting and compliance tasks. Waiting until July to prepare often leads to unnecessary stress, delays in reporting, governance hiccups, and missed compliance deadlines.

At Accounting For Good, we always encourage our charity and NFP clients to start their EOFY preparations well before the financial year wraps up. Not only does early preparation enhance financial accuracy, but it also empowers boards and management teams to make informed decisions before the financial year concludes.

For charities and NFPs, EOFY is about more than just closing the books. It involves fulfilling obligations to the Australian Charities and Not for Profit Commission (ACNC), the Australian Taxation Office (ATO), auditors, grant providers, and state regulators. Taking a proactive approach ensures your organisation remains compliant, transparent, and financially robust.

An important task is ensuring your bookkeeping and financial records are accurate and up to date before 30 June. Waiting until after year-end to reconcile accounts can delay reporting and auditing processes.

Charities and NFPs should review:

• Bank reconciliations
• Payroll and superannuation records
• Accounts payable and receivable
• Grant income and acquittals
• Asset registers and depreciation schedules
• Employee leave liabilities
• Restricted and tied funding balances

It is also an opportunity to identify any coding issues, duplicate transactions or unreconciled items that may affect your financial statements.

For organisations receiving government grants or philanthropic funding, ensuring income is correctly recognised under accounting standards is particularly important. Revenue recognition errors are one of the most common issues identified during audits of NFP entities.

A common misstep is deferring recognition of income received simply because the funder and/or the organisation have referred to it as a grant. For example, we have seen many philanthropic funders refer to their payments as grants to be used in a future period. On inspection of the contract, there is little evidence of an enforceable agreement or of any clear, measurable performance obligations. It is unlikely that this payment is deferred income and more likely to be recognised as income on receipt, like a donation.

The recognition, or deferral, of income is done based on the substance of the agreement between funder and recipient and whether it meets the guidelines of AASB 1058 and AASB 15, not on what it is called.

All registered charities are required to lodge an Annual Information Statement (AIS) with the ACNC each year or ORIC if they are an Indigenous Corporation that has chosen to be registered. Medium and large charities must also submit annual financial reports.

Your reporting obligations depend on your charity’s size:

• Small charities: annual revenue under $500,000
• Medium charities: annual revenue between $500,000 and $3 million
• Large charities: annual revenue above $3 million

Medium and large charities are generally required to prepare accrual-based financial statements and have them reviewed or audited.

EOFY preparation should include confirming:

• Your charity size classification
• Whether an audit or review is required
• That your governing documents remain current
• Board and the responsible person details are accurate
• Related party transactions have been identified and disclosed where necessary

The ACNC has also increased scrutiny of governance compliance, record-keeping, and transparency. Boards should ensure that meeting minutes, conflict-of-interest registers, and governance policies are up to date and accessible.

If your organisation requires an audit or review, preparation should begin well before June 30th. Auditors expect organisations to provide complete records early in the process.

Preparing now will reduce audit costs and prevent reporting delays. In most cases, your auditor may request:

• Signed board minutes
• Funding agreements
• Lease agreements
• Payroll summaries
• Grant acquittals
• Work papers that support all balance sheet line items
• Supporting documentation for significant transactions
• Asset purchase documentation

It is important to prepare early; organisations that leave audit preparation until the last minute often face incomplete documentation, delayed board approvals, and missed ACNC deadlines.

Ensure you carefully review your ATO compliance obligations. It’s crucial to stay informed and adhere to all requirements. By doing so, you maintain transparency and safeguard your organisation’s financial standing. Remember, taking the time to understand these obligations can help prevent future issues. Make it a priority to stay up to date on any changes that may affect your compliance status. Depending on your structure and registrations, your organisation may need to review:

• GST reporting and BAS lodgements
• Fringe Benefits Tax (FBT)
• PAYG withholding obligations
• Superannuation compliance
• Payroll tax obligations
• Deductible Gift Recipient (DGR) status

While ACNC-registered charities typically benefit from an exemption regarding the new ATO NFP self-review return, it’s essential for non-charitable NFPs with an ABN to understand their new annual self-review reporting obligations to sustain their income tax exemption status.

The end of the financial year presents a perfect occasion to reassess salary packaging arrangements and employee reimbursements, ensuring compliance with the FBT concession rules available to qualifying charities.

EOFY reporting is a great opportunity for boards and management to ensure compliance and dive into the organisation’s financial sustainability. We encourage charities and NFPs to assess key areas, such as cash flow forecasts, funding concentration risks, reserve levels, program profitability, staffing costs, and future grant dependency. With many organisations experiencing rising operating costs, this is the ideal time to proactively identify financial challenges and create strategies for the upcoming year. It also provides boards the chance to compare budgets with actual performance and consider any necessary adjustments to ensure a strong start to the new financial year.

The most successful charities and NFPs view EOFY preparation as a continuous journey, not just a last-minute task. By starting early, you can address reporting issues, prepare for audits, manage governance responsibilities, and meet ACNC and ATO requirements accurately and promptly.

At Accounting For Good, we are dedicated to partnering with charities and NFP organisations to make EOFY preparation easier.