Hillsong College on probation after Australian regulator raises compliance concerns
Hillsong College, one of several ministries run by the nondenominational Hillsong Church network headquartered in Australia, has 18 months to adequately meet several compliance standards of the Australian Charities and Not-for-profits Commission after an investigation by the national regulatory body.
The ACNC accepted a remedial plan from the college known as an enforceable undertaking last Friday in an effort to maintain its charity registration, according to a legal document.
The investigation found issues with matters such as reporting obligations; compliance with financial and operational record keeping; governance standards; and compliance with ACNC's External Conduct Standard, which covers things such as the way a charity manages its activities overseas, how it is required to control the finances and other resources it uses overseas and the requirement to comply with Australian laws.
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"On 20 December 2024, the delegate of the ACNC Commissioner of the Australian Charities and Not-for-profits Commission accepted an enforceable undertaking offered by Hillsong College Ltd," the ACNC announced.
An enforceable undertaking is a court-enforceable plan voluntarily offered by a registered charity to take or not take a series of actions in order to meet the compliance standards of the charity regulator.
If the charity is found to be in breach of the enforcement undertaking, the ACNC could get a court to enforce the terms of the agreement. If the charity still fails to meet the terms of the agreement, criminal charges could be levied.
The ACNC investigation of compliance matters with Hillsong College, which boasts more than 14,000 alumni from over 60 nations, began in September 2022 after "public allegations of a serious nature were made about the Hillsong Church charities."
"In 2022 and 2023, public allegations of a serious nature were made about the Hillsong Church charities. Hillsong College is one of several Hillsong Church charities registered with the ACNC. Hillsong College's sole member is The Trustee for Hillsong International. The board of Hillsong College is comprised of the same individuals as the board of The Trustee for Hillsong International," the ACNC noted.
At Hillsong College in Australia, an undergraduate diploma in ministry costs just over AU$11,000, while a bachelor of ministry/theology costs just over AU$18,000 for domestic students and AU$20,000 for international students. A master of arts degree from the college costs just over AU$26,000 for international students and AU$24,000 for domestic students.
In response to the ACNC's acceptance of the undertaking, Hillsong College said it provided the charity regulator with a governance action plan in August. Many of the corrective actions outlined in that plan, which focus on record-keeping, financial management and transparency, and eliminating conflicts of interest, are formalized in the enforcable undertaking.
Some of the actions Hillsong College is expected to take include ensuring that minutes of any board or committee meeting are recorded, highlighting specific information such as the name of the committee or board, date, time, location and names of attendees.
Hillsong College is also required to ensure that it keeps written details of all key management personnel that are employed or engaged by a related party and follow certain guidelines when it comes to significant financial transactions.
Over the 18-month period of the undertaking, Hillsong College must also provide the ACNC with progress reports on their compliance at six, 12 and 18 months.
In a statement, Hillsong Church said the college's undertaking is among other compliance agreements its ministries have entered into with the ACNC.
"The compliance agreements and undertaking incorporate a range of actions that Hillsong Church and its ministries committed to earlier this year. The matters are resolved without findings of a contravention or any noncompliance with the Act," the Hillsong Church statement reads. "We recognise that this is an important step to follow the governance improvements which we have set out in our regular church updates. We will continue to work with the ACNC and look for other ways to improve our practices — so that we can continue to serve our community."
In March 2023, Andrew Wilkie, an independent member of the Australian Parliament, revealed that a whistleblower report accused Hillsong Church founder Brian Houston and other leaders of money laundering, tax evasion and shopping sprees that would "embarrass a Kardashian."
Citing reams of financial records and genuine Hillsong Church board documents he received from a whistleblower, Wilkie said popular American televangelists like Joyce Meyer and T.D. Jakes were paid tens of thousands of dollars in honorariums by the global megachurch for speaking engagements. Meanwhile, others like Chris Hodges, founder and leader of Church of the Highlands, received "curious payments."
"Last year, a whistleblower provided me with financial records and board papers that show that Hillsong is breaking numerous laws in Australia and around the world relating to fraud, money laundering and tax evasion," Wilkie alleged during his presentation in Parliament.
He then pointed to a document showing that in 2021, as the world grappled with the impact of the COVID-19 pandemic, four members of the Houston family flew to Cancun, Mexico, for a luxury retreat lasting three days and billed the church $150,000 for it.
"These other documents show former leader Brian Houston treating private jets like Ubers — again, all with church money," Wilkie said. "For example, in one three-month period, Brian Houston's trips cost $55,000, $52,000, $30,000, $22,000 and $20,000."
A spokesperson for Hillsong said in response to Wilkie's claims that Hillsong has been "open and transparent with our congregation about past governance failures, and over the past twelve months we have engaged independent, professional assistance to overhaul our governance and accountability procedures."
"The claims made in federal parliament by Mr Andrew Wilkie are out of context and relate to untested allegations made by an employee in an ongoing legal case," the spokesperson reads. "These allegations, made under parliamentary privilege, are in many respects wrong, and it is disappointing he made no effort to contact us first. If he did so, we would have answered his questions and provided him with financial records to address his concerns."
In March 2023, Hillsong Church announced a slew of changes in how it manages its finances.
Hillsong Church's now 70-year-old founder Brian Houston formally resigned as Hillsong's global senior pastor in March 2022 after revelations that two women made serious complaints of misconduct against him in the last 10 years.
He and his wife, Bobbie, have since launched a new ministry called Jesus Followers online.
Hillsong College had been expanding in the U.S. in recent years but announced earlier this year that it would pause Hillsong College USA after May 2024, to streamline their operations.
"The College is committed to a careful teach-out process for existing programs. This commitment ensures that students currently midway through their academic year can successfully complete their courses by May 2024," Hillsong officials wrote in a statement. "This decision is part of a strategic refocus of the College's leadership development and education strategy, aligning with Hillsong Church's global strategy and mission. The move aims at ensuring a more sustainable and promising future for Hillsong College both in the USA and globally."
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