As organisations enter planning cycles for the 2026 financial year, Evergreen Accounting & Advisory is calling on non-profits to take a proactive approach to several emerging regulation, reporting, and compliance changes that will influence how charities, associations, and community organisations manage their finances.
Natasha Mackenzie, Managing Director of Evergreen Accounting, says 2026 will be a year defined by stronger governance expectations, more transparent reporting, and tighter scrutiny over financial accountability.
“Non-profits are operating in a period where funding is harder to secure and compliance is becoming more rigorous. Boards and executives need clarity on what is coming so they can plan programs, budgets, and staffing with confidence. Early preparation is essential.”
Evergreen Accounting highlights five priority areas that non-profits should be focusing on now to stay ahead of the curve.
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Heightened Governance Standards and Director Responsibilities
Regulators and funding bodies are signalling a shift toward stronger oversight. Boards can expect greater emphasis on risk management, financial literacy, and responsible financial stewardship. Organisations should review board skills, induction processes, and annual governance training.
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Evolving ATO Expectations for Grants, Donations, and GST
2026 is expected to bring tighter categorisation requirements for grants and fundraising revenue. Misclassification is a growing focus area. Non-profits should ensure their accounting systems distinguish grant income, tied funding, and general donations with precision. GST compliance in mixed-purpose organisations will also be reviewed more closely.
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Digital Transformation Incentives and Technology Write Offs
Non-profits that invest early in technology modernisation may benefit from accelerated write-offs, including digital infrastructure, cybersecurity, workflow automation, and cloud-based systems. Planning now ensures purchases align with funding cycles and tax treatment.
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Workforce and Contractor Classification Reviews
Updates to contractor versus employee tests are expected to continue. Organisations using contractors for programs, events, or outsourced staffing should review agreements, ensure Superannuation Guarantee obligations are captured, and update payroll systems ahead of July 2026.
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Strengthened Reporting Requirements Through ACNC and State-Based Regulators
Financial report thresholds and disclosure requirements continue to evolve. Non-profits should expect expanded expectations around program impact, revenue categorisation, and related-party disclosures. ACNC is also improving data matching which means audited, reviewed, and compiled reports must be accurate and consistent.
Mackenzie says the organisations that prepare early will not only safeguard compliance but also strengthen their financial position.
“Non-profits need space to do their best work for the community. When financial systems and compliance processes are strong, organisations gain the confidence to apply for larger grants, attract partnerships, and scale their programs. Preparation is both a financial and strategic advantage.”
Evergreen Accounting & Advisory encourages non-profits to undertake a 2026-readiness review before the end of Q1 next year. This includes a governance check, chart of accounts refinements, funding compliance audit, and a forward-looking tax strategy.
Prepare your organisation for 2026 compliance and governance changes — connect with Evergreen Accounting today.
