NOT FOR PROFIT LEADER’S REPORT Financial Management 2026
Now in its sixth year, this report presents insights from not for profit leaders, reflecting on the past year and offering practical recommendations for stronger financial management.
Not for profits are navigating a new era of uncertainty and opportunity - adapting, innovating and building resilience to meet rising challenges and deliver lasting impact.
Key highlights
- Reliance on government funding remains high, but not for profits are actively pursuing income diversification to strengthen financial sustainability.
- Over half of not for profits saw revenue growth last year, with many also raising prices to manage rising costs. Funding sustainability remains a concern as expenses and competition continue to rise
- Technology and governance are in focus, with 78% developing AI policies and 88% using cloud accounting, though few leverage automation or data analytics.
- Payroll costs and compliance complexity are major challenges for 24% of organisations, yet payroll confidence remains strong even though compliance reviews are relatively infrequent.
Not for Profit Leader's Report - Financial Management 2026
Download your copy to explore practical insights from the report
Download the reportWhat’s inside?
- Funding and revenue trends, pricing strategies and funding diversity.
- Financial health benchmarks covering cash reserves, budgeting and performance metrics.
- Workforce and payroll insights, with a focus on compliance, skills gaps and future capability.
- Technology and innovation updates, highlighting digital tools, automation and cybersecurity.
- Governance and risk essentials, including board engagement, risk management and resilience planning.
- Key takeaways and actionable steps you can incorporate in your organisation.
About the authors
Our specialist not for profit team, understand the practical realities of balancing purpose, funding, people and accountability. Led by Aidan Smith, Head of Not for Profit Australasia, our Sydney team of more than 40 specialists works alongside organisations to strengthen financial stewardship, manage risk and support sound, sustainable decisions. They work closely with boards and executive teams across the sector on strategy, governance, risk and financial sustainability.
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About the Not For Profit Leader's Report
HLB Mann Judd Sydney publishes the Not For Profit Leaders Report twice a year. Each edition is based on surveys with NFP leaders and focuses on either strategic planning or financial management, offering practical insights to support decision making across the sector. Earlier reports are also available on our website.
About HLB Mann Judd Sydney
HLB Mann Judd works closely with not for profit organisations across Australia, supporting boards and leadership teams as they navigate financial, governance and strategic challenges. Our specialist not for profit team, understands the practical realities of balancing purpose, funding, people and accountability. Led by Aidan Smith, Head of Not for Profit Australasia, our Sydney team of more than 40 specialists works alongside organisations to strengthen financial stewardship, manage risk and support sound, sustainable decisions.
We support not for profits across audit and assurance, strategy and advisory, governance and risk, tax, sustainability and digital assurance, providing practical advice that reflects the sector’s complexity and constraints. Our focus is on helping organisations build capacity, use resources well and support long-term impact.
The Sydney firm is a member of the HLB Mann Judd Australasian Association. HLB Mann Judd has offices in most of the major business centres in Australia and New Zealand and is a member of HLB International, the global advisory and accounting network. If you want to talk through the findings or see how they apply to your organisation, our team is here to help. We’re invested in your success, every step of the way.