Modernising the Charities Act 2005

Public consultation - have your say!

The Department of Internal Affairs (DIA) announced the beginning of the public consultation period on 22 February 2019. Consultation is open until 30 April 2019.

As part of this announcement, DIA also released a discussion document outlining key issues, as set out in the terms of reference. The discussion document asks specific questions to help members of the public share their experiences and provides examples of how charities currently operate under the Act.

 You are encouraged to have your say by attending a community meeting and sending in a written submission in response to the discussion document. Submissions can be made by downloading the submission form linked below and returning it to DIA by post or email.

Community meetings 

The Department of Internal Affairs (DIA) will be hosting 21 community meetings throughout the country between 6 March and 18 April 2019 about the modernising the Charities Act.

Community meetings will be an opportunity to hear presentations from DIA and sector representatives about issues within the scope of the review. Linked below are the slides shown at the meetings containing the presentations from DIA and sector representatives. Both presentations are included in the same PDF file. Dates, times and locations for the community meetings may be subject to change.

The community meetings are an important part of a wider engagement strategy. A discussion document will be released in late February 2019, to encourage public submissions by late April 2019. DIA has worked with key stakeholders to develop an engagement strategy which can be found below.

The flyers below outline the key points that will be discussed during community meetings and note why it is valuable for charities to attend. We encourage everyone to share these flyers with their own networks. 

General flyer for community meetings for the Charities Act Review 2019      Maori engagement flyer for community meetings for the Charities Act Review 2019     Pasifika engagement flyer       Thumbnail of Te Reo Māori version of flyer

Open a PDF of each flyer from the thumbnails above or click on the links below:

Read the media release: Community meeting dates and locations released (1 February 2019)

Earlier documents

Core Reference Group (CRG)

The Department of Internal Affairs has established the CRG to assist during the review. As outlined in the terms of reference, the Department of Internal Affairs will work closely with the CRG to identify issues and possible solutions within scope. The CRG comprises the following six members, who bring a variety of perspectives, skills and experiences to the review:.

  • Sue Barker (Director of Sue Barker Charities Law);
  • Charmaine Brown (Director of Creating Success and Trustee of Autism Intervention Trust);
  • Donna Flavell (Chief Executive Officer of Te Whakakitenga o Waikato Incorporated and Trustee of Waikato Raupatu Lands Trust);
  • Anaru Fraser (General Manager of Hui E! Community Aotearoa);
  • Everdina Fuli (Research Advisor at Te Whare Wānanga o Aotearoa); and
  • Dave Henderson (former positions include Chair of Kidney Health New Zealand and External Relations Manager for Hui E! Community Aotearoa).

Sue Barker and Dave Henderson of the CRG have received some funding from a consortium of philanthropic community trusts to carry out a research project, aimed at gathering empirical community-sourced evidence to feed into the review of the Charities Act. This research is being conducted in their independent, private capacities, separately from the Government review. For further information, please email davehendersonnz@gmail.com.

 

Indicative timeline

The following indicative timeline supersedes the original indicative timeline contained in the terms of reference for the review (below):

Phase

Indicative timing

Key activities

One – Establishment

Completed May 2018

Develop and approve terms of reference

Publicly announce review

Two – Pre-consultation

Completed

 

Complete by Feb 2019

Establish Core Reference Group

Identify issues and possible solutions, develop discussion document

Three – Consultation

Late Feb – Apr 2019

Launch discussion document

Public consultation

Four - Policy

May – late 2019

Review public submissions

Develop policy proposals for Cabinet approval

Five - legislation

Late 2019 onwards

Develop draft legislation

Passage through the House of a Bill to amend the Act

Frequently Asked Questions

Overview of the charitable sector and the Charities Act

Overview

The charitable sector contributes significantly to New Zealand society. These charities contribute in diverse areas including sports, recreation, arts, culture and heritage, emergency and social services, health, education, religion, conservation and the environment. There are more than 27,000 registered charities in New Zealand. The sector has an annual total income of more than $18 billion and it is supported by more than 230,000 volunteers and 180,000 paid part-time or full-time staff.

Charities Act 2005

In 2005, the Charities Act was enacted. The Act aims to promote public trust and confidence in the charitable sector. It provides for the registration of societies, institutions, and trustees of trusts as charitable entities. It also places certain obligations on charitable entities, such as annual reporting. Being listed on the charities register entitles an organisation to tax exemptions on most income under the Income Tax Act 2007. Registration on the charities register is voluntary.

Link to Charities Act 2005 (Legislation NZ website)

Background to the 2018-2019 review

The original Charities Bill was introduced into Parliament in 2004, and led to establishment of a Charities Commission. The charities register (which provides the purposes, activities and annual returns for all registered charities) commenced in 2007.

In 2010, the former Minister for the Community and Voluntary Sector announced an intended review of the Charities Act 2005, to assess both the effectiveness of the Charities Commission since its inception in 2005 and the “charitable purpose” definition.

However, in 2011, the Government disestablished the Charities Commission, transferring its functions to the Department of Internal Affairs and an independent Charities Registration Board. This was part of the Crown Entities Reform Bill: https://www.parliament.nz/en/pb/bills-and-laws/bills-digests/document/50PLLaw19581/crown-entities-reform-bill-2012-bills-digest-no-1958#RelatedAnchor

Cabinet decided in 2012 not to continue with a review, as the new regulatory regime was still bedding in, and the definition of charitable purpose was considered to be generally working reasonably well. The following Cabinet papers and minutes related to that decision were proactively released by the Minister:

In 2018, the Minister for the Community and Voluntary Sector announced that a review of the Act would be undertaken, noting that while the fundamentals of the Act are considered sound, there are a range of substantive issues that will be reviewed. The February 2018 edition of the Charities Services newsletter outlined that preparatory work to begin a review of the Charities Act was well underway.

The Minister announced the terms of reference for the review in May 2018. The Minister will be the key decision maker on the review, with some decisions also requiring Cabinet approval. The Department of Internal Affairs will be the lead agency. The full terms of reference can be found above. See: Earlier documents.

Contact the team

If you can’t find the information you need on this page or if you have any further questions please email charitiesact@dia.govt.nz