We recognise that reporting can sometimes be a bit daunting. If you need support during this time, please reach out. We have clinics every Thursday for charities that need one-on-one support and you can find more information about these below.

This month I’d like to draw your attention to a couple of things where your feedback makes a difference.

Volunteering New Zealand’s (VNZ) State of Volunteering in Aotearoa survey is now open for feedback. The last report, published in 2020, presented a snapshot of volunteering in New Zealand before COVID-19’s impact. By giving feedback on your experiences of volunteering in our new context, you will be providing invaluable information to inform the next report.

Te Tari Taiwhenua, the Department of Internal Affairs, is also seeking your feedback on a draft briefing exploring how community participation and decision-making can be supported by technology. Your thoughts and ideas are welcome, and you can find a link to more information about that briefing below.

Part of our role at Charities Services is highlighting the positive mahi of charities across Aotearoa. Our latest sector showcase features EcoMatters Environment Trust from Tāmaki Makaurau, Auckland. They deliver a wide range of environmental initiatives including sustainability workshops and events and running teaching māra (gardens) to promote food security. Their programmes have helped divert 75,200 kg of waste from landfills and turned 210,000 kg of food scraps into soil. You can read more about EcoMatter’s brilliant mahi in this newsletter.

If your charity would like to be considered for a future sector showcase, send us an email and a member of our team will get back to you.

Heoi anō tāku mō nāianei, noho ora mai ki a tātou katoa (that is all for now, stay well everyone).

Nā Mike Stone

Kaiwhakahaere Matua, General Manager

IN THE SPOTLIGHT 

It's reporting time!

31 March 2022 was the end of the financial year for many of you, which means it is time to start thinking about annual reporting. All registered charities need to file an annual return and either a performance report (Tier 3 and 4) or financial statements (Tier 1 and 2) within six months of their balance date (end of financial year). Check out our Annual Returns page for more information on filing your return.

What should I be doing right now?

All charities with their balance date on 31 March 2022 should be finalising their transactions for the year. Tier 4 charities should be gathering their bank statements and/or cash, and larger charities should be calculating their year-end journals and closing their general ledger.

It also pays to start collecting the information you need to complete your Statement of Service Performance, though we suggest doing this throughout the year. Remember, this is the non-financial information Tier 3 and 4 charities provide about their activities (outputs) and the reasons for doing this work (outcomes).

Your reporting might look a little different this year if your charity was affected by COVID-19. You may have done more, or you may have closed down or reduced your services. Remember to record the main activities you performed in achieving your purpose or mission, so you have something to compare with in the future.

Where can I find help?

We have a step-by-step timeline to support Tier 3 and 4 charities when completing their performance report. The resource outlines the steps you should take, and when to take them, to complete your performance report within 6 months of your balance date.

Our annual return checklist for Tier 4 charities goes over the key things you need to record throughout the year to complete your annual return and performance report. We also have guides, templates and loads of other information for both Tier 3 and Tier 4 charities. Make sure you check out the reporting webinars on our website if you need some reporting tips or book in a Thursday clinic if you need one-on-one support from a Charities Services advisor.

If you are a small Tier 4 charity, there is a new performance report template available that is shorter and easier to use. You can find the Simple Tier 4 Template and guidance on how to use the template on our website.

Performance reports

Your performance report is something you file with us once a year, but it can be used in many ways throughout the year to showcase your mahi.

When writing your performance report, think about what your members, donors and supporters expect to see in it. You can be creative and use pictures or graphs if that helps illustrate the work you do. Remember, your performance report is also your chance to celebrate and show your achievements to your readers.

What if I use a professional?

If you get a professional to prepare your accounts, remember to give them plenty of time. Let them know your filing date and make sure they know you are a charity, as the accounts need to be prepared under the Not For Profit (PBE) reporting standards.

If your annual expenses are above $550,000 for the last two years, you will need to speak with a qualified auditor. Remember to also check if your rules state you must get an audit or review.  A review or audit may take some time to complete, so it pays to engage early. If you want to know more about audits, we just published a blog on the topic. Also check out the statutory audit and review requirements page on our website.

We are aware that there is a current shortage of auditors in New Zealand which means you may need extra time to complete your annual return. If this is the case for you, please contact us.

State of Volunteering in Aotearoa Survey

Volunteering New Zealand (VNZ) is seeking feedback on the state of volunteering in Aotearoa. If you are a volunteer or your organisation involves volunteers, this survey is right for you. VNZ’s last report published in 2020 presented a snapshot of volunteering in Aotearoa at a critical point in the nation’s history - just prior to COVID-19 hitting our shores. Your feedback on how volunteering has changed for you now will help inform the 2022 report. The survey closes in mid-May. Give your feedback here.

Charities Services' He Rourou Atawhai Sessions

We know that some charities aren’t always able to attend our workshops and events during typical business hours, so we’ve designed a series of informal evening Zoom sessions to share information with you.

He Rourou Atawhai sessions are 45 mins long and will include short presentations and plenty of time for questions and answers where we will all learn from each other.

When? 4 May 2022 
What time? 7:00pm – 7:45pm

The first session will cover the new simplified Tier 4 template. This is a new and easier to use performance report template available for small Tier 4 charities. Registration is now open, sign up here.

SECTOR SHOWCASE

EcoMatters Environment Trust

EcoMatters Environment Trust is a registered charity whose vision is ‘a society where aroha (love), wairua (spirit) and mauri (environment) is restored’.

Their programmes have helped divert 75,200 kg of waste from the landfill, saved 11.5 million litres of water and turned 210,000 kg of food scraps into soil. Read about their mahi here. 

NEWS OF INTEREST

Privacy 101 for charities

You may have heard about the new Privacy Act that went into effect in 2020. Maybe you've completed an e-learning course, but you’ve still got questions about how the Act applies to your day-to-day work.

In this informal session, representatives from the Office of the Privacy Commissioner will give a short overview of what’s changed since the new Act, and then be on hand to answer all your thorniest questions. 

Register here and find out more by checking out the Office of the Privacy Commissioner's website.  

Donation guidance updated

We recently updated our donations page on our website.

Many people have questions about donating, whether it’s members of the public wanting to donate to charities, or charities themselves wanting to donate to other organisations.

This page answers some common questions you may have about donating to charities locally and overseas, and how to donate safely.  

New video release

Stuck trying to create your Annual Return?

We’ve recently released a video to support people who are unable to create their Annual Return online. This usually happens because you have an update details form in progress. To fix this you need to delete the update details form.

You can find out how to do this by watching the video.

New blog

Our latest blog looks at audit reports and what you need to know to submit the right document to us. It covers when and why you would need an audit, what makes up an audit report and the different types of audit opinions.

This blog is particularly helpful for charities with operating expenditure over $550,000. Read it on our website.

New Zealand Charity Reporting Awards 2022 winners announced

The winners and highly commended in the 2022 New Zealand Charity Reporting Awards have been announced.

The awards, organised by Chartered Accountants Australia and New Zealand (CA ANZ), recognise excellence in charity reporting and to help the sector continuously improve the quality of its reporting. These reporting standards give greater transparency and consistency among charities.

Well done to all the winners and highly commended! You can find details of the winners, as well as links to their Performance Reports, on the Chartered Accountants Australia and New Zealand’s website.

New Zealand's willpower 

Results of a two-year study on leaving gifts in wills to charities in New Zealand has been released. Commissioned by the Fundraising Institute of New Zealand (FINZ), this research benchmarks the current rate of people considering a gift to charity in their will, along with an understanding of the unique factors at play in the New Zealand context compared to other countries. Read the report here.

Philanthropy New Zealand releases Match | Te Puna Taurite 

Philanthropy New Zealand, Tо̄pūtanga Tuku Aroha o Aotearoa, has developed a new service to help both those seeking and distributing philanthropic funding in Aotearoa New Zealand.

The vision of Match, Te Puna Taurite is a more equitable, accessible and collaborative funding system. It aims to more easily connect those with funds to those that seek them.

Match, Te Puna Taurite launched on the 28^th of March 2022. You can keep updated by subscribing to the MTPT newsletter and through the Philanthropy New Zealand | Tōpūtanga Tuku Aroha o Aotearoa website.

GOVERNANCE MATTERS

Board Talks

Community Governance Board Talks is a bi-monthly Zoom series that discuss topical issues designed to help you on your governance journey. Register for the next Board Talk and hear from not-for-profit thought leaders on the subject of cyber security for not-for-profits.

Click this link for more information: 
Board Talks: What does digital and cyber security mean for NFPs? - Thursday 23 June 2022, 12:00pm

UPDATES FROM WIDER GOVERNMENT 

Your thoughts on community participation and decision-making

Are you interested in how community participation and decision-making can be supported by technology?  Do you have ideas about the best way to do this, or thoughts on emerging issues government and society need to consider?

In May, Te Tari Taiwhenua, the Department of Internal Affairs will be seeking public feedback on a draft briefing exploring this topic. This is a Long-term Insights Briefing, and it looks forward at least a decade. The Briefing examines key issues, trends and different scenarios, and investigates options for navigating the years ahead.

The thinking and analysis in the final Briefing will be available to everyone, and the options it explores could be picked up or debated by the current government, other political parties, or anyone else wanting to make positive change.

If you want to be emailed when the draft Briefing is published, and haven’t already signed up for updates, email LTIB@dia.govt.nz with “Subscribe” in the subject line.

You can find out more on the Department of Internal Affairs website. 

Ministry of Foreign Affairs and Trade

The Minister of Foreign Affairs and Minister for Trade and Export Growth recently announced new trade measures against Russia. These include travel bans on specific individuals, asset freezes, prohibition of certain financial dealings, and bans on military aircraft and ships entering Aotearoa.

All New Zealanders and entities operating in Aotearoa are required to comply with the sanctions set out in the Regulations.

For more information please refer to the Ministry of Foreign Affairs and Trade website.

The Community Organisation Grants Scheme (COGS) funding round is open!

The Community Organisation Grants Scheme (COGS) provides grants to non-profit community groups and organisations delivering community-based social services, projects and events. Grants are one-off contributions for things like operational costs of organisations that provide community-based social services, community development costs such as hui, training fees, and project costs.

The funding round closes 18 May 2022. For more information, check out the CommunityMatters website.

Updates from Inland Revenue

Draft ruling open for public consultation

We welcome your feedback on the draft ruling PUB00420 ‘Fringe benefit tax – charitable and other donee organisation and fringe benefit tax’.

The draft public ruling considers when benefits provided by charitable organisation to their employees may be excluded from being treated as fringe benefits.

Public comments are being accepted through until 6 May 2022. For further information please visit; PUB00420: Fringe benefit tax - charitable and other donee organisations and fringe benefit tax (ird.govt.nz)

COVID-19 Tax relief for donations of trading stock

Our website has been recently updated with information around COVID-19 tax relief for donations of trading stock. If this applies to you or for more information please visit COVID-19 Tax relief for donations of trading stock (ird.govt.nz)

Resident withholding tax (RWT) exemptions

A reminder if you are a registered charity with Charities Services, you do not need to apply for an RWT exemption. We will automatically add you to the register upon receiving notification of the organisation’s charity registration. 

You can find out more information and check your organisations RWT exemption details via our online RWT exemption register here Resident withholding tax exemption register (ird.govt.nz)

Have your contact details or members changed recently?

Please make sure your organisations contact details and names of current members, executive officer holders or trustees are updated with us. This makes the process faster should we need to get in contact with you.   

If you need to get in touch to update any details, please contact us through your myIR account. For more information, please visit myIR Secure Online Services (ird.govt.nz)

Governance Matters

Policies

If you run a charity you need to have the right things in place to ensure you are compliant with legal, governance, regulatory and funding requirements.

Whether your charity is large or small, it is important that you have some written policies and procedures to guide your board, your staff and your volunteers. It helps when things go wrong to have a way forward that everyone has already agreed to.

Increasing legislative and regulatory compliance also increase the need for a regular review of your charity’s policy bank. The kind of policies you need will depend on your individual charity. Below are a few common ones we recommend you have in your policy bank.

• Conflict of Interest Policy
• Health and Safety
• Grievance Procedures
• Privacy Policy
• Bullying/Harassment Policy
• Whistle-blower Policy
• Child Safety and Safeguarding Policy

You can find lots of helpful information on CommunityNet Aotearoa (type in “policy” in the search bar). You can also find free policy templates here, a checklist of policies and procedures and a policy building tool here.

RESOURCES

Read the plain text version of this email here.