Sep 29, 2025 Emily Pell
Strengthening Governance: Lessons from Hillsong College
In December 2024, the Australian Charities and Not-for-profits Commission (ACNC) issued an enforceable undertaking to Hillsong College following serious concerns about governance, financial reporting, and compliance with the ACNC’s External Conduct Standards. Among the most critical issues identified were deficiencies in record-keeping and the handling of related party transactions.
The undertaking is specific to Hillsong College but provides good practice recommendations that any not-for-profit could adopt.
Related Party Transactions: What Went Wrong?
The ACNC found that Hillsong College had failed to adequately document and manage related party transactions. These are transactions between the charity and individuals or entities closely connected to it—such as board members, staff, or affiliated organisations. Poor handling of these transactions can lead to conflicts of interest, misuse of funds, and loss of public trust.
As part of the enforceable undertaking, Hillsong College must now:
- Identify and disclose all related party transactions in its financial reports.
- Ensure board members declare conflicts of interest and abstain from decisions where they have a personal stake.
- Maintain clear records of approvals and justifications for any related party dealings.
- Demonstrate that all transactions are in the best interest of the charity and aligned with its purpose.
How Organisations Can Improve Record-Keeping and Governance
1. Document Related Party Transactions Thoroughly
- Keep a register of related parties and update it regularly.
- Record the nature, value, and rationale for each transaction.
- Ensure board minutes reflect discussions and decisions about these transactions.
2. Strengthen Conflict of Interest Protocols
- Require annual declarations from board members and senior staff.
- Include conflict of interest as a standing agenda item in meetings.
- Use independent decision-makers where conflicts exist.
3. Standardise Meeting Minutes
- Use a consistent format that captures:
- Attendees and apologies
- Agenda items and discussions
- Decisions made and actions assigned
- Conflicts declared and how they were managed
4. Centralise and Secure Records
- Use digital platforms to store:
- Financial reports
- Governance documents
- Meeting minutes
- Compliance records
- Ensure access is controlled and regularly backed up.
5. Train and Review
- Provide governance training for board members and staff.
- Conduct regular internal audits of records and processes.
- Use ACNC templates and guidance to benchmark practices.
Final Thoughts
The ACNC’s directive to Hillsong College is a powerful reminder that governance lapses can have serious consequences. By prioritising transparency, especially in related party transactions, and maintaining meticulous records, charities can protect their reputation, meet regulatory obligations, and continue serving their communities with integrity.
You can find a copy of the enforceable undertaking on Hillsong College’s ACNC listing.
