Newsletter cont.

This time of year is always a very busy one for charities, with a large number of you having a reporting due date of 30 September. We know that this can be time consuming on top of all your other mahi (work), so we have a whole host of reporting resources to help you included in this newsletter, with more available on our website.

The Charities Services annual meeting is being held simultaneously online and in person in Tamaki Makaurau Auckland this year. After COVID meant we had to run last year’s meeting entirely online, I am really pleased that we will be able to see some of you in person. The team and I are very much looking forward to meeting with you all, no matter how you choose to attend, and hearing about the valuable work you do in the community.

Here at Charities Services, we’re committed to making sure we support the diverse communities that make up the charitable sector. We have recently completed a project to translate some of our key resources into multiple languages. There are six separate resources that have been translated into nine different languages now available on our website. We think it’s really exciting that charities from Māori, Pacific and ethnic communities now have resources available to them in their own languages. I encourage you to have a look at them on our website!

This month we also observe Charity Fraud Awareness Week on 17-21 October. The Fraud Advisory Panel in the UK have been running this awareness week for 6 years now and have provided some incredible tools and resources to charities in that time. I encourage everyone to have a look and get involved if you can.

Natasha Weight
Kaiwhakahaere Matua, General Manager.

IN THE SPOTLIGHT 

Update on proposed changes to the Charities Act

The Minister for the Community and Voluntary Sector, Priyanca Radhakrishnan, has introduced the Charities Amendment Bill to the House.

The objective of the Bill is to make practical changes to support charities to continue their vital contribution to community well-being, while ensuring that that contribution is sufficiently transparent to interested parties and the public. The Bill does this by:

•  enabling simpler financial reporting from small charities to reduce the compliance burden
•  improving access to justice for charities in the appeals process
•  enhancing regulatory decision-making requirements, to further promote transparency and fairness
•  clarifying the role of officers and supporting the governance of charities
•  improving regulatory compliance and enforcement tools.

The public now have an opportunity to make submissions on the Bill until 10 November 2022. To read the Bill and make a submission visit the Parliament website.

Charities Services Annual Meeting

Tickets to attend our annual meeting on 14 October have sold out. If you missed out this year, a recording of the event will be available on our website shortly after the meeting. 

Translated Resources

We've translated some key resources for charities into nine languages (Te Reo Māori, Cook Islands Māori, Tongan, Samoan, Fijian, Hindi, Simplified Chinese, Traditional Chinese and Arabic). These resources include information on completing your Annual Return, registration, officer information, templates, and guides. 

To view all the translated resources, visit our website.

It’s reporting time!

Many charities are in the process of  preparing their performance report/financial statements and filing their annual return. There are many resources on our website to help with reporting, and a good place to start is to know which tier you will use. Once you know this, it unlocks a range of resources for Tier 3 and Tier 4 charities. You will find annual return guides, templates, example performance reports, webinars and other information on the webpage for your tier. 

You might also want to have a look at our blog “Annual Reporting is crucial and here’s what you need to know”. If you are new to reporting then our page on filing your annual return gives you a good idea of what is required, and has a list of the questions you’ll be asked.

Other great tools include the Automated Cash Book, which will help you track your transactions throughout your financial year and summarise them into the required format for the Statement of Receipts and Payments or the Statement of Cash Flows. If you are Tier 4 and are having trouble with Excel you can read the troubleshooting blog. If you are still finding things hard, remember you can book in for an online clinic to have a chat with our friendly team.

Don’t forget to check your rules and the limits for audit or review requirements! Remember to get in touch with us if you think you may be late filing your annual return.

New Simplified Tier 4 Performance Report

If you are a very small Tier 4 charity you should check out the new Tier 4 template.  Earlier this year the External Reporting Board (XRB) released a simplified version of the Tier 4 Performance Report template. It has all the same minimum required information, but is condensed into a short and more manageable three pages.

This is great for small charities, as it will make meeting the reporting requirements much easier. It’s specially designed for charities with only one bank account, few or no assets or commitments, and no complex transactions.

If you feel like this might be right for your charity have a look at the quick guide and find the template on our website.

Exploring the data on the Charities Register

We’re excited to announce some improvements to our website that allow you to more easily access and view the data on the Charities Register!

We have introduced a new Power BI data visualisation section, which you can use to explore information ranging from the sector’s income and expenditure through to volunteer hours and the areas charities work in.

The wealth of useful data available on the Register is used by a range of people for different purposes. The Register helps the public and funders make informed decisions about which charities they want to support. The Register is also used by the charitable sector itself, government and researchers to assist in making or influencing policy and strategic decisions.

We are always looking at ways to improve access to the data on the Register. If you have any suggestions, please get in touch. 

NEWS OF INTEREST

Clinic reminder 

Don’t forget, we hold one-on-one support clinics every Thursday!

This is an excellent opportunity to talk to our team and get answers to all the questions you have about registration or being a registered charity. Clinics are available for a range of subjects, from pre-application advice to financial reporting, as well as governance. You can talk to us over Zoom or by phone call.

Sign up for a clinic here.

Myth Busting

When we’re out and about, we often hear myths about what charities and Charities Services can and can’t do. Our Myth Busting series is a regular feature where we address some misconceptions and bust some myths!

This month, we are looking at the myth that you need an accountant to prepare your performance report.

Read the article here to find out more.

Our Contact Centre is still closed – but we’re here to help

Please email us at info@charities.govt.nz if you have a question. If you need to speak to someone directly, please send us an email and we will call you back.

Charity Fraud Awareness Week

This year’s Charity Fraud Awareness Week is being held from 17-21 October, and it is a good opportunity to find out how to protect your charity from fraud. The Fraud Advisory Panel in the UK have been running the awareness week for six years and have seen a tremendous response from members of the sector throughout the world.

Fraud and cybercrime are threats to every organisation, especially charities, as criminals look to exploit the current global crisis. Regulators from all around the world will be raising awareness and sharing good practice in tackling fraud and financial crime.

You will be able to attend some of the live webinars, take part in the social media campaign and check out the excellent resources.

More information can be found on the Prevent Charity Fraud website.

Match | Te Puna Taurite - be a part of a more equitable, accessible and collaborative funding system!

Match | Te Puna Taurite is an online service for philanthropists and grant makers to connect with community and charitable groups working in areas they want to support. 

Charities can post funding requests to get in front of multiple funders with one action. Funders can search for charities working in particular areas they want to support. 

Head to match.org.nz/apply and join before 31st October to get your early bird discount. 

Make sure you are following the Match | Te Puna Taurite Facebook and LinkedIn pages and are subscribing to their newsletter.

INCORPORATED SOCIETIES UPDATES

The Incorporated Societies Act 2022 was passed on 5 April 2022, but societies don’t need to do anything just yet. There is a transition period of several years that allows societies time to become familiar with, and prepare for, the new regime. Below is a summary of the key changes you should know about.

Key changes

A summary of the key changes included in the Incorporated Societies Act 2022 can be found on New Zealand Companies Office website:

• Comparisons between 1908 Act and 2022 Act
• Members’ consent
• Committee and officers
• Contact person for the society
• New financial reporting standards
• Documented dispute resolution procedures
• Documented recipient of surplus assets
• Societies will need to reregister
• How you can stay up to date

You can watch the webinar series on the changes and re-registering under the new Act.

Make sure you sign up to stay up to date.

UPDATES FROM WIDER GOVERNMENT

Do you provide lending services?

If your charity lends money as part of your regular activities, you are likely to be considered a financial institution, and will have obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

If this sounds like your charity, the AML group is interested in hearing from you. Getting in touch is easy! Send an email to amlcft@dia.govt.nz, and one of the team will help you understand your obligations under the AML/CFT Act.

For updates from the AML Group at Te Tari Taiwhenua DIA subscribe here.

Introducing Granted.govt.nz

Did you know over $250 million was returned to communities in Aotearoa New Zealand through pokie grants distribution in 2021?

Granted.govt.nz is a new website that makes it easier for you to see whether your community benefits from pokie grants. The purpose of the digital tool is to provide community-based organisations with easy access to information about the distribution of these grants, allowing users to filter and sort the data down to a local level.

Learn more at Granted.govt.nz

Updates from Inland Revenue

Deregistered charities remaining on the Companies Office Register

A reminder that if your charity has wound up or is no longer on the Charities Register, and you were either a charitable trust or an incorporated society, you will need to apply to the New Zealand Companies Office to be removed from its register.

Charities remaining on the New Zealand Companies office Register continue to be considered as legal entities and will need to file income tax returns, even if there is no income generated.

Further details on this process are available at:

Ending a charitable trust board | Charitable Trusts (companiesoffice.govt.nz)
Ending an incorporated society | Incorporated Societies (companiesoffice.govt.nz)

Deregistration tax

Deregistered charities that have net assets of $10,000 or more on hand at the time of deregistration may be liable for deregistration tax. For deregistration tax not to apply, deregistered charities have 1 year from the date of deregistration to either:

• distribute the assets in line with their deed or constitution, or
• become re-registered with the Department of Internal Affairs – Charities Services

Inland Revenue monitors those deregistered charities that fall into the above category.

Further details are available at: When your charity is deregistered (ird.govt.nz)

Once Inland Revenue has processed the charity’s deregistration in their system, they will issue a letter. This letter covers deregistration implications, options available for organisations no longer wanting to be a registered charity but that will continue to operate, and the next steps for those that are no longer operating and have wound up.

Please make sure to read this letter and contact Inland Revenue through your myIR account or email charities.queries@ird.govt.nz if you have any further questions.

RESOURCES

Read the plain text version of this email here.