Message from Charlotte

In the last financial year, there were just over 29,000 registered charities and 227 groups in New Zealand. These charities were governed by 121,000 individual officers. Volunteers play a crucial role in our charitable sector. Over 170,000 people volunteered a remarkable 1.4 million hours to registered charities each week. Another 100,000 people are employed full-time in the charitable sector, making up around 4% of New Zealand’s workforce. This is a truly significant contribution to communities throughout Aotearoa. This information, along with the other data in our 2023/24 Annual Review, comes directly from the information charities include in their annual returns every year.

Charities Services held its Annual Meeting online in November. The Annual Meeting is an important part of our role as a responsive regulator, and it’s where we can share information with you and answer any questions you have of us. The team also use the opportunity to run short information sessions, focused on topics you’ve asked for more support with. If you would like to view recordings of the Annual Meeting, or the information sessions, these have been published on our website.

This year we have focused on increasing our engagement opportunities with you and responding to the needs you have raised. We held in-person Community Sessions around the country and hosted over twelve webinars. We are thankful to those who were able to attend an in-person or online event. We have met over 4,300 of you this year. If you couldn’t attend a webinar, we publish all of them on our website, so you can watch them at a time that suits.

It is my great pleasure in this issue to introduce Tarita Hutchinson as the newest member of Te Rātā Atawhai, the Charities Registration Board. Ms Hutchinson brings with her a wealth of financial governance experience and a strong commitment to community service. We look forward to working with Ms Hutchinson. 

As always, the team have filled this newsletter with information we hope will be helpful to charities. This issue covers information on Incorporated Societies, changes to the Gambling Act, and updates from Inland Revenue. We’ll be back with more information and resources in our February edition.

Finally, the holiday period is fast approaching. For many of us, this means a break before heading into another year. But for some, it will mean work is ramping up. On behalf of the team here at Charities Services I wish you all a happy holiday season. We look forward to seeing you in 2025.

Meri Kirihimete!

Nā Charlotte Stanley
Kaiwhakahaere Matua, General Manager

New appointment to the Charities Registration Board

Tarita Hutchinson has been appointed as a new member of Te Rātā Atawhai, the independent Charities Registration Board. The main function of this Board is to make decisions about registering or deregistering charities.

Tarita joins the board as an experienced trustee and fiduciary with over three decades in senior advisory roles across the Pacific in the public, private, and not-for-profit sectors. As a Chartered Member of the New Zealand Institute of Directors and a Fellow of CPA Australia, she brings extensive governance expertise and a strong commitment to community service.

Tarita is dedicated to creating sustainable impact through her work, especially within Pacific communities. As the founder of Temarama Wealth, she focuses on empowering Pacific entrepreneurs to build resilient wealth infrastructure that supports their communities.

Tarita is excited to bring her skills in financial governance, strategic planning, and community-focused solutions to her role on Te Rātā Atawhai, which she began in October 2024.

For more information about how the Charities Registration Board, click here.

Charities Services Annual Meeting 2024

On 13 November, we held our Annual Meeting. This meeting offers registered charities the opportunity to hear from us, ask questions and to celebrate the diversity of the charitable sector.

This year, alongside the speeches and Q&A session we added three information sessions on the topics of Governance, Annual Reporting, and Incorporated Societies reregistration process.

We also launched the Charities Services’ 2023/2024 Annual Review. This outlines what we have done this year and our main goals for the year head. It highlights information about charitable sector and the important mahi (work) charities do.

We would like to extend our thanks to all the charities who shared their photos with us.

To view a recording of the Annual Meeting and to read the Charities Services Annual Review follow the links on the Charities Services website.

November 2024 Webinars

In November we held webinars on the new governance review, changes to the officer definition and updates to the reporting standards. All the recordings can be found in this email and on the Charities Services' website. 

Governance review - this webinar discussed the new governance review that registered charities need to complete once every 3 years. We looked at the new requirement, why it is important to review your governance and provided information on where you can get help to improve the way you run your charity. To watch this webinar, click this link.

Officer definition - when the Charities Act 2005 changed last year, the definition of who is an officer of a registered charity changed. This webinar talked about the importance of understanding what the new definition of an officer means to your charity, who may now be included, and the duties of an officer of a registered charity. To watch this webinar, click this link.

Updates from the External Reporting Board on the Reporting Standards - we hosted a webinar with the External Reporting Board who set the reporting standards that charities must use when reporting to Charities Services. The webinar explained the changes in reporting standards and how to use the new templates. The webinar provided important financial reporting information for charities who report at Tier 3 and Tier 4. To watch this webinar, click this link.

Is your charity also an incorporated society still registered under the 1908 Act?

Did you know that currently 22% of registered charities are also registered as incorporated societies?

If your charity wants to remain an incorporated society you will need to re-register with the Companies Office before 5 April 2026.

Key changes for all incorporated societies under the Incorporated Societies Act 2022 include:

• updating your constitution to set out clear and fair provisions for resolving internal disputes
• ensuring the majority of the committee members are members of the society
• and you no longer need to use a common seal.

For more information about the reregistration changes head to the Companies Office website.

If your incorporated society is also a registered charity and has completed the reregistration process, you might have a new rules document. Your new rules document should also be updated on the Charities Register. Log in to your Charity’s Dashboard and fill in an Update Details form.

Consultation on Audits of Less Complex Entities

The External Reporting Board (XRB) is consulting on the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

This consultation is looking at the possibility of adopting the ISA for LCE auditing standard, tailored to fit New Zealand conditions. This consultation is open until 27 February 2025.

To find out more information and have your say, click here

Good news for charities with gambling licences

Changes to the Gambling Act means that charities who hold a class 3 gambling licence can continue to operate raffles and lotteries online and keep raising funds for good causes.

Tickets can continue to be purchased online using a range of payment options such as internet banking or providing credit card details via a website. Class 3 licence holders can choose to run their entire raffle or lottery remotely too, as tickets can also be issued digitally.

If you’re planning on running a class 3 raffle or lottery, make sure you read the rules on our website, there are some key things you’ll need to know. For example, when running a class 3 raffle or lottery, no commission can be offered or paid to anyone other than a licenced promoter.

For more information on class 3 raffles and lotteries, click here.  

Update from Inland Revenue

Tax and Social Policy Work Programme announcement

The Government launched its Tax and Social Policy Work Programme on 12 November 2024.

The Government's integrity measures include reviewing the tax rules for charities and not-for-profits.  The Government wants to ensure that the not-for-profit sector continues to benefit from tax concessions, while at the same time making sure the concessions are fit-for-purpose and not abused.  

To see the Tax and Social Policy Work Programme please visit  Policy work programme announced.

More information will be provided when available.

Will your charity’s members or contact details change in 2025?

Please make sure your organisation’s contact details and names of current members, executive officer holders or trustees are updated with Inland Revenue. You can do this in your organisation’s myIR account. This makes the process faster should Inland Revenue need to get in contact with you.   

End-of-year closedown

The Inland Revenue lines will close down at 2pm on Tuesday 24 December 2024 and reopen on Monday 6 January 2025. For more information, see their website.

Holiday closure

Charities Services will be closed from 12:00 PM (midday) on Friday, 20 December 2024 and will reopen on Monday, 6 January 2025.

During this time, charities can still log in to their online account to file annual returns or update their details. The Charities Register will also be available for everyone to check the latest information on registered charities.

The team at Charities Services wishes you a happy and safe holiday season.

Resources

Read the plain version of this email here.