Many charitable clients have sought advice from us regarding the Charities Act and 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 government agency that is responsible for processing the registration of charitable entities and monitoring 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 under the Charities Act as a charitable entity involves no application fee and is a voluntary decision.  There are several benefits for charities that choose to register:

• Obtaining tax-exempt status with the Inland Revenue Department,
• Ensuring that those that donate to them benefit from tax deductions to a recognised charity,
• Being listed on the Charities Register,
• Receiving a registration number that records the organisation’s charitable status, and
• Being provided with information about 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 (although some ancillary activities are permitted),
• 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. 

Monitoring and investigation 

The Charities Commission is responsible to monitor charities in New Zealand and all charities can be investigates as part of an ongoing programme of monitoring, or as a result of a complaint made to the Commission.  We have experience in advising clients subject to and making complaints.  The Commission has very strong powers when undertaking an investigation and those governing a charity are required to take investigations seriously and to respond promptly and in detail to any Commission communications about an investigation. 

Education 

The Commission’s website, www.charities.govt.nz, has a lot of useful information on it.  Those involved in governing or managing charities can sign up for Commission newsletters (go to www.charities.govt.nz/News/LatestNewsletter/tabid/219/Default.aspx), and also attend the series of regional forums held periodically and notified in the Commission’s newsletters. 

Further information  

Bannister & von Dadelszen partner, Mark von Dadelszen, writes fortnightly articles on charities and societies (see NZ Lawyer Articles on Societies and Charities on our website), and is also the author of the only New Zealand text about charities and societies, Law of Societies (see Lexis Nexis). 

Please contact Mark von Dadelszen if you have any questions relating to the registration process or about the Commission’s monitoring and complaints investigation functions. 

May 2011