AICD: Not-For-Profit Study 2025/26
The not-for-profit sector is evolving rapidly. New data, emerging risks across cyber, AI and climate, and shifting operating practices are raising expectations and placing unprecedented governance demands on boards.
With fewer resources and greater personal accountability, directors are navigating increasing complexity while strengthening performance, oversight and long-term sustainability.
To better understand the forces shaping the future of not-for-profit governance, the latest Not-for-Profit Governance and Performance Study from the Australian Institute of Company Directors (AICD) highlights a sector at a critical inflection point—balancing resilience with mounting pressure.
NFP boards across Australia are operating in an increasingly demanding environment, with governance workloads, regulatory obligations and workforce challenges continuing to escalate. While commitment to purpose remains strong, directors are being asked to do more, often with less, with many roles extending beyond traditional oversight into operational involvement.
Key findings from the 2025–26 study include:
- Governance maturity is improving, with 82 per cent of directors reporting stronger governance than three years ago
- Director workloads are rising, with 46 per cent spending more than three days per month on a single board, raising concerns around burnout and succession
- Director remuneration is becoming more common, with 27 per cent of non-executive directors now paid, up from 24 per cent in 2024 and 16 per cent a decade ago
- Workforce planning, board succession and skills capability remain critical challenges, particularly in care-focused and regional organisations
Financial performance across the sector remains mixed. While many organisations are meeting or exceeding income expectations and reporting fewer losses, margins remain tight, limiting their ability to absorb shocks or invest in transformation. This places greater emphasis on strong financial oversight and disciplined governance.
As AICD Managing Director and CEO Mark Rigotti notes, the sector continues to operate in an environment of growing complexity and heightened expectations. Encouragingly, the findings also point to measurable progress, underscoring the sector's resilience and the critical role boards play in navigating what comes next.
