Many charitable clients have been seeking advice from us regarding the changes to charities legislation and the recent creation of the Charities Commission.

With the implementation of the Charities Act 2005, charitable entities can now apply to become a registered charitable entity with the Charities Commission.  The Charities Commission is a newly-created government agency that is responsible for processing the registration of charitable entities and governing the charitable sector within New Zealand.  If your organisation operates for a “charitable purpose” then it is entitled to register with the Charities Commission.  Both Charitable Trusts and Charitable Societies can register, with or without being registered under the Charitable Trusts Act 1957 or Incorporated Societies Act 1908.

Registration as a charitable entity has no application fee and is a voluntary decision; however, there are several benefits for charities that choose to register:

• Getting or retaining tax-exempt status with the Inland Revenue Department,
• Being listed on the Charities Register,
• Receiving a registration number that states the organisation’s charitable status, and
• Being provided with information on the charitable sector within New Zealand.

Who can register?

Any charitable entity can apply for registration with the Charities Commission if:

• It is established and maintained for exclusively charitable purposes,
• It is not established for the private profit or gain of any individual or group,
• It has a name that complies with the Charities Act 2005, and
• All the officers of the Charity are qualified to be officers.

(For advice as to whether your Charity operates for charitable purposes or whether the officers are appropriately qualified, please contact us.)

In order to retain tax-exempt status, the Commission required all charitable entities to be registered by 1 July 2008. 

For those that have not yet registered and seek to retain tax-exempt status, it is recommended that registration becomes a priority.For those charities that have applied for registration, at present the Charities Commission is processing applications received as at 19 September 2008.

We have attempted to contact all charitable organisations that we are involved with, and have been successful in registering many that have decided to register with the Commission.  If your charity would like assistance or advice with regards to the registration process then please do not hesitate to contact us.  We are able to assist with the application, and provide advice as to any work that may be needed to update rules, constitutions, trust documents, or other documents.

For any queries relating to the registration process please contact Mark von Dadelszen.