Hillsong College commits to reforms amid charity regulator investigation

(Photo: Hillsong)

Australian megachurch Hillsong is facing fresh scrutiny after a ruling by the country's charity watchdog, the Australian Charities and Not-for-profits Commission (ACNC), found a number of financial irregularities at its college.

Just before Christmas, ACNC published a list of enforceable undertakings for the college, and indicated that the body was considering entering into similar agreements for other Hillsong Church charities.

The investigation by the ACNC found issues with several aspects of operations at the college, including reporting obligations, compliance with financial and operational record-keeping, governance standards, and its compliance with the ACNC's External Conduct Standard. The External Conduct Standard covers the way a charity manages its overseas activities, including the requirements for controlling overseas finances and other resources and ensuring compliance with Australian laws.

The church first came under scrutiny from the ACNC in 2023, when Independent MP Andrew Wilkie tabled internal Hillsong documents in the Australian Parliament which he claimed had been supplied to him by a church whistleblower, alleging that the church had broken "numerous laws" in Australia and around the world, and had engaged in "fraud, money laundering and tax evasion".

Speaking under parliamentary privilege, Mr Wilkie raised a number of allegations, including that Hillsong founder and former leader Brian Houston had treated private jets "like Ubers", spending tens of thousands of dollars in church money per flight, and that members of the Houston family "and their friends" had used $150,000 of church money on a luxury retreat in Cancun, Mexico, while Australia was in the grip of a strict Covid-19 lockdown.

Hillsong Church denied these allegations at the time, saying in a statement that they "are in many respects wrong".

Hillsong College, which boasts more than 14,000 alumni from over 60 nations, is one of the church's flagship programmes. The church responded to the findings from the ACNC in a statement acknowledging it has been "cooperating with" the regulator.

"As part of those inquiries, and to demonstrate our commitment to continuous improvement in governance, Hillsong Church and its ministries have agreed to resolve the inquiries of the ACNC by entering into compliance agreements, and for Hillsong College by providing an undertaking," the statement says.

The church also claimed that "the matters are resolved without findings of a contravention or any noncompliance with the act".

As part of the enforceable undertaking, which is a voluntary agreement entered into by a charity under investigation, Hillsong College committed to improving its record-keeping and disclosure of conflicts of interest, and will also be required to meet standards governing charities regarding their international activities and financial statements. Failure to adhere to the terms of the voluntary agreement could see the ACNC seek a court order enforcing the terms, or lead to criminal charges being laid.

Wilkie criticised the ACNC's decision, labelling it as "pathetic".

"The commission is effectively saying it will forget about the extraordinary alleged wrongdoing in Hillsong so long as the church promises to be good from now on," he told The Daily Telegraph.

Hillsong was once one of Australia's most successful Christian exports, boasting Hollywood celebrities and politicians among its members. However, its international image was dented by a scandal involving Hillsong East Coast and New York City pastor, Carl Lentz, who was known for his magnetic leadership and celebrity connections. He was fired by the church in 2020 for what they called "leadership issues and breaches of trust, plus a recent revelation of moral failures".

However, the church has been rocked by numerous other scandals over the past few years. Brian Houston was forced to step down as leader of the church after allegations of inappropriate behaviour toward two women, as well as substance abuse.

A recent television exposé broadcast in Australia contained a number of other accusations, including claims by former members of sexual, emotional, and spiritual abuse they allegedly suffered while attending the church or participating in other programmes it runs.