Theo ManningThe charity co-founded by former PwC Australia CEO Luke Sayers has gone from more than a dozen staff earning over $120,000 per year to claiming it now has zero employees — and it has failed to lodge its annual accounts with the Australian Charities and Not-for-profits Commission (ACNC) for the financial year ending 30 June 2025. The Inclusion Foundation, which received more than $3 million in government grants in recent years, is now listed by the ACNC as having overdue reports. The collapse raises significant questions about how Australian charities are held accountable when they receive public money — and what mechanisms exist for taxpayers and donors when they don't get answers.
What Happened to Inclusion Foundation
The Inclusion Foundation's trajectory was dramatic. In 2022 and 2023, the organisation was receiving approximately $1.5 million per year in government grants. By the financial year to June 2024, that revenue had crashed to $82,800. The charity posted a $510,000 loss in FY2024, leaving just $173,000 in equity — roughly four months of runway at that burn rate.
The charity's website has since been taken down. Its phone service is deactivated. The organisation has told the ACNC it no longer needs to file full financial reports because it now qualifies as a "small charity" — a regulatory threshold introduced by the previous Coalition Government that reduces the reporting burden for organisations with revenue below a certain level.
However, even small charities are required to lodge an annual information statement with the ACNC. Inclusion Foundation's statement for FY2025 was due by 31 January 2026. According to the ACNC register, it remains overdue.
This matters because the public money the organisation received — more than $3 million over several years — came from Australian taxpayers, not private donors with no stake in the outcome.
Charity Governance and ACNC Obligations
Australia's charity regulatory framework requires registered charities to operate in accordance with the ACNC Act and the ACNC Governance Standards. These are not optional. They apply regardless of the charity's size, and failure to comply can result in warning notices, compliance actions, or ultimately deregistration.
The ACNC's Governance Standards require, among other things, that charities operate lawfully and with integrity, manage financial affairs responsibly, and be accountable to members and the public. For charities that receive government funding, additional accountability obligations typically flow through the grant agreements themselves — including requirements to report on how the money was spent and what outcomes were achieved.
A charity that receives $3 million in public money, employs more than a dozen people, and then effectively disappears without adequate accounting is not simply a private matter between the organisation and its former donors. It is a matter of public interest that the ACNC and, potentially, other regulators have the power to investigate.
What Can Be Done When a Charity Doesn't File Its Accounts
Anyone can make a complaint to the ACNC about a registered charity's failure to meet its reporting obligations. The ACNC's complaint process is publicly accessible, and the regulator has the power to compel information, conduct investigations, and take enforcement action.
Key steps for concerned donors or stakeholders:
1. Check the ACNC Charity Register. The register is publicly searchable. You can view a charity's filing status, see whether reports are overdue, and access any historical financial documents that have been lodged. This is the first step in understanding what has and has not been disclosed.
2. Lodge a formal complaint. The ACNC has a formal complaint pathway on its website for concerns about a charity's conduct, governance, or compliance. Complaints can be made anonymously.
3. Contact the relevant grant-making body. If government grants are involved, the agency that awarded the funding — whether a federal department or state body — has its own accountability frameworks. Commonwealth grant recipients are subject to the Commonwealth Grants Rules and Guidelines, which require transparency on how public money is used.
4. Seek legal advice if significant funds are at stake. For major donors or organisations that co-funded programs, a solicitor specialising in charity and not-for-profit law can advise on whether there are grounds for a civil claim, particularly if there is evidence that funds were not used for their stated purpose.
The Broader Governance Lesson
The Sayers situation is not unique. Across Australia, hundreds of charities receive millions of dollars in government funding each year. Many operate transparently and to high standards. But the combination of reduced reporting thresholds for small charities, stretched regulatory capacity at the ACNC, and the reputational shield that some high-profile names provide means that governance failures can persist for years before anyone outside the organisation notices.
According to the Australian Charities and Not-for-profits Commission, registered charities must meet five governance standards including a requirement that responsible persons (board members and officers) act with reasonable care and diligence, act in the best interests of the charity, and ensure the charity does not operate while insolvent.
If you have donated to a charity that appears to have ceased operating without adequate financial transparency, or if you work for a not-for-profit and have concerns about governance, consulting a legal expert in charity law is the appropriate next step.
Australia's charity sector depends on public trust. When that trust is broken — especially where public funding is concerned — accountability mechanisms exist. The question is whether they are used.
ExpertZoom connects Australians with legal and financial experts who can help you understand your rights in charity disputes, assess whether a complaint to the ACNC is appropriate, or navigate the governance obligations that apply to charity board members and officers.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your circumstances.
