Minister urges charities to embrace innovation and governance

Posted on 29 Jul 2025

By Nick Place, Institute of Community Directors Australia

Shutterstock human AI edit — AI and new technologies can be harnessed by charities willing to embrace innovation and governance challenges. Pic: Shutterstock

The charity sector must have a strong commitment to innovative and trustworthy governance in order to play a leadership role in Australia’s ever-changing social and economic transformation, Charities Minister Andrew Leigh told a conference this morning.

Delivering the keynote address at the ACNC’s Governing for Good conference on Wednesday morning, Minister Leigh said governance not only was critical to the frontline role charities played in tackling Australia’s challenges, but must be approached with the mindset of enabling success, not just avoiding failure.

“In a country where one in 10 workers is employed in a charity, and millions volunteer, the governance of not-for-profits is not a side conversation,” he said. “It’s a national concern. Governance is what connects trust to impact. It’s how the sector earns its legitimacy, defends its independence, and drives change.”

Leigh told the conference that Australia stood at a critical moment. “Not just for charities, but for the nation,” he said, saying Australia was challenged by everything from artificial intelligence to fiscal constraint, from shifting demographics to climate shocks, from geopolitical uncertainties to pressures on the budget. “The operating environment is changing fast. The pressures are real, but so too is the opportunity to shape a more inclusive, resilient and connected economy.”

Charities Minister Andrew Leigh. Pic: Hilary Wardhaugh

“For the charity sector, that transformation is twofold,” he said. “First, it affects you directly. Changing workforce patterns, shifting donor expectations, increasing demand for services, and new forms of accountability are altering how organisations operate.

“Second, it places you at the centre of the national response. Whether it’s climate adaptation, mental health, food security, education or housing, charities are not on the sidelines. You are central to how Australia manages change.

“But to lead that response, you need systems that support adaptation, and that’s where governance comes in. Governance is the bridge between principle and practice. It’s how an organisation ensures that its decisions reflect its values, its risks are understood, its resources are well used, and its people are treated with respect,” he said.

“And governance isn’t static. It evolves. Governance manuals are like gym memberships – we all like having one, but real progress comes from turning up regularly and doing the work.”

The minister sympathised with the challenges the sector faced in trying to keep up with constant social and technological changes.

“These days, every second conference promises to explore the intersection of AI and ethics,” he said. “I’m still waiting for one that explores the intersection of AI and fixing the office printer.

“Whether its AI in housing support, digital tools in education, or data analytics in environmental advocacy, new technologies are reshaping the terrain. Some of the biggest questions facing boards in the next decade won’t be about compliance. They’ll be about design.

“Can we use AI to reach more people without sacrificing human connection? Can we manage data responsibly while also drawing insights to drive policy? Can we stay nimble without becoming reactive?

“Strategic planning in 2025 often feels like trying to write a five-year map with a two-month weather forecast. These are questions of governance, and they are urgent.”

“Strategic planning in 2025 often feels like trying to write a five-year map with a two-month weather forecast. These are questions of governance, and they are urgent.”

Charities Minister Andrew Leigh

Leigh provided several examples of organisations using what he said was great governance matched to innovation to come up with new ways of having an impact.

Wombat Housing, a Melbourne-based housing support service, created a very clever conversational AI tool called Wombot that now handles after-hour queries, directs clients to the right services and allows frontline workers to concentrate on the most critical clients, he said. Cool.org, which provides teaching resources for educators, has developed a sophisticated AI-powered lesson planning tool to greatly free up over-stretched teachers. Clean Up Australia has used AI to analyse its huge volunteer clean-up informational data set, “transforming grassroots energy into policy-grade evidence.”

Leigh gave a shout-out to Cool.org for its positive use of AI.

“The lesson? Good governance doesn’t resist innovation. It channels it. It ensures that new tools serve the mission, not the other way around, and it does so in a way that builds, rather than erodes, public trust,” he said.

Leigh saluted the Australian Charities and Not-for-profit Commission (ACNC) for hosting the Governing for Good conference, which brought together charity leaders, board members, advisers, regulators and advocates.

“The transformation underway in Australia isn’t just the backdrop to your work. It is reshaping the kinds of problems the sector tackles, and how you go about it,” he said. “From boardrooms in Broome to budget meetings in Bairnsdale, Australia’s 60,000 charities are wrestling with similar issues. This forum helps turn those experiences into collective insight,” he said.

“The more charities can adapt, the more communities can cope. The more transparent you are, the more trust you build. The more you learn from each other, the more resilient we all become.”