Next week the Charities Services team are hosting a clinic in New Plymouth. Some of our team will meet with charities to answer their questions about financial reporting, funding and more general questions about running a charity. If you haven’t registered yet you can do so here. The team will be hosting more engagement events across the country throughout the year. Keep an eye out on our Facebook page and in upcoming newsletters for more information.

We also heard the message that reporting is difficult, and some of the templates and online materials are not as clear as they could be. Last year, we released a 'How to complete your Performance Report and Annual Return' guide, but with this newsletter we’ve also released a simple checklist for small (Tier 4) charities. This will help your group know what you need to be collecting through the year, so when you get to the end of your financial year, you’ll have the information ready for your performance report and annual return.

Did you know that the Charities Services team is made up of 38 people across four different teams, all working towards promoting public trust and confidence in the New Zealand charities sector? One person on the Charities Services team that you’ll meet at our engagement events is our new accountant, Allyssa Carle.

We know that financial reporting can be a daunting task, but Allyssa is here to help and make that task more manageable. Look out for her at the engagement events we’ll be running across the country, and if you have questions about your reporting, contact us here and Allyssa or one of our team will make contact.

The theme of this newsletter is collaboration. There is no question that the New Zealand charities sector makes a significant contribution to Aotearoa. There are more than 27,000 registered charities, all working towards their own charitable purposes. We know that sometimes working with other organisations can help you reach your goals more effectively.

This newsletter discusses why collaboration is important for the charities sector. We profile the Working Together More Fund, a fund dedicated to supporting charities that collaborate. In our Sector Showcase we talk to Community Foundations New Zealand about how they work with charities to increase their impact in their local communities. 

There is no doubt that working together allows us to achieve greater results. It is inspiring to hear about how the charities sector has come together to have a bigger impact on the communities that they serve. 

Nāku te rourou, nāu te rourou, ka ora ai te iwi

With your basket and my basket the people will thrive

Ngā mihi,

Natasha Weight
General Manager

IN THE SPOTLIGHT

Volunteer Firefighters and the Australian Bushfire

While the holiday period is usually a time for spending with friends and family and getting in a well-deserved break in the sun, for many people in Australia, the summer break was marked by intense bushfires and extreme heat. People from New Zealand, and worldwide, have given generously through donating money and goods or even sewing pouches for wildlife. But dedicated volunteer firefighters from Aotearoa New Zealand went above and beyond and flew over to help battle the flames. Working together is important in any endeavour, but for firefighters it is vital. Ray Dunbar, a volunteer fire fighter from Taupō, recently returned from a stint in Australia and spoke to us about his experience.

Ray has been a rural volunteer firefighter for eight years and he is extensively trained in vegetation fire. When the opportunity came to deploy to Australia, he didn’t hesitate to put himself forward. Ray explains “Helping others is second nature for volunteers, that is just what you do. Whether it is your neighbour on the street, or your neighbour across the ocean that needs help.”

Ray worked alongside firefighters from throughout Australia as well as volunteers from Canada. This coming together meant that beleaguered firefighters who had been battling the blazes for months had a chance to take a break, spend time with family and return to work. Though we all witnessed the ferocity of the fires through the news, Ray says that nothing prepares you for the extent of the damage, the intensity of the heat and the community heartbreak that surrounds you. Despite this, he would go back in a heartbeat to help those in need.

Photo: Volunteer firefighters Brad Eyre and Ray Dunbar

Collaboration for firefighters is an essential part of the job. No matter their background, they are all working toward the same goal, to protect people and their property. For anyone who has thought about volunteering with their local fire brigade Ray has this advice to offer: “Explore your options, go along to a training night and see what it’s all about. Everyone was new at one point so don’t be shy, you will be welcomed with open arms.”

To find your local volunteer fire brigade you can check the Charities Register or visit the Fire and Emergency New Zealand website. We also have some guidance on our website on how to donate safely to support the Australian bushfire relief.

The Working Together More Fund

The Working Together More Fund (WTMF) – He Pūtea Mahi Tahi – was established in 2009. The idea came out of research into the value of collaboration in not-for-profit organisations commissioned by Wayne Francis Charitable Trust, J R McKenzie Trust, Todd Foundation and The Tindall Foundation. It found that although successful collaboration takes time and effort, working together has a massive contribution to the successful performance of groups. One of the recommendations was the WTMF, which was launched with the aim of helping community organisations work together in order to achieve greater results. 

Today the WTMF is made up of eight funders (J R McKenzie Trust, Todd Foundation, The Tindall Foundation, Hugh Green Foundation, D.V.Bryant Trust, Len Reynolds Trust, Wayne Francis Trust and Lindsay Foundation). The WTMF exists for collaboration but also because of collaboration. To ensure the successful running of the fund, the funders have to work together. 

Since the establishment of the WTMF, 331 grants have been given to collaborations across the country. These grants have supported a lot of positive change in community organisations. A 2019 report found that those community organisations that received the WTMF improved their quality of service, programme outcomes, human resources and these organisations made many more positive changes. The WTMF demonstrates how powerful collaboration can be and the great things that can be achieved by working together. 

The latest funding round closes on 20 March 2020. To find out more about the Working Together More Fund and how you can apply, visit their website. 

Changes to the reporting standards

The External Reporting Board (XRB) has introduced changes to the reporting requirements for Tier 3 and Tier 4 charities. 

If you are a Tier 3 or 4 charity and your financial year ends on or after 31 December 2019 (due with Charities Services from 30 June 2020) your performance report will now need to include:

• The date the performance report was approved and authorised
• Details of who authorised the performance report (usually this will be one or more of the officers of your charity)
• The signature(s) of that person/those people

Read more about this change here. 

Update on the modernisation of the Charities Act 

As you many of you know from the last Policy Group update, the Department of Internal Affairs’ Policy Group released the summary of submissions from the public consultation on Modernising the Charities Act last year.

The Policy Group is working through the issues identified in the discussion document and raised by submitters. The initial focus of the work will be on reporting requirements for small charities, charities’ business activities and accumulation of funds.

The Policy Group will continue to involve the charitable sector – specifically the Core Reference Group – as work on these issues progresses over the next few months. No legislative change will be made this parliamentary term.

If you have any further questions, feel free to get in touch with the Department’s Policy Group via email at charitiesact@dia.govt.nz.

SECTOR SHOWCASE

Community Foundations New Zealand

Collaboration; working together for a cause you feel passionate about, it’s essential to a charity’s survival. Many people involved in charities want a similar outcome: to give something back to their communities and to see that support sustained over time. But what happens when a charity is languishing? Maybe a charity is struggling to find beneficiaries or attract new Trustees? Or perhaps an historical Trust wishes it could contribute more? This is where community foundations come in.

Community foundations are a group of independent, not-for-profit organisations throughout Aotearoa New Zealand. The first community foundation was established in Wellington in 1991 and by 2013 community foundations were established in most major regions. In the same year, the Community Foundations of New Zealand was formed in order to better support the various regional foundations. Community foundations are an international success story and are growing steadily across the country. In just the past five years over 20 million dollars has been granted to worthy causes and individuals from funds established by individuals and charities. 

So why would a registered charity want to invest their assets with a community foundation? Aotearoa has a thriving charitable sector, but we understand that for some charities there may come a time when it is necessary to wind up.

Wastebusters Trust is a Canterbury based community initiative established in 1991. During their 24 years in operation, founders Anita Coghill and Sheryl Stivens, achieved a lot for their community. They supported groups to reduce ‘waste’ going to landfill and provided sustainable waste reduction processes and recycling education, all with the purpose of working towards zero waste. Eventually, due to a lack of financial resources the time came to make the difficult decision to wind up. The Trustees still wished to support projects that promote waste minimisation practices and protect and enhance the environment. They invested their surplus funds into Advance Ashburton Community Foundation so their causes could continue on despite the winding up of the charity. The resulting invested fund will guarantee that their legacy lives on into the future.

Photo: Members of Wastebusters Trust and Advance Ashburton Community Foundation

It can take trust to invest your money or assets, so how do you know that your investment won’t be lost and that it will be well managed? Fear not! Each community foundation has a professional investment manager and a written investment strategy unique to each region. What’s more, your investment is protected against inflation, so the capital won’t be eaten away over time. Each community foundation is governed by a local volunteer Board of Trustees, following robust appointment processes, who are given the responsibility to carry out donors' wishes, which are legally documented. The Trust can also stipulate which area they want their money to be invested in, such as the arts, the environment, health care services or a specific charity. This way they can still support their original charitable purpose even after the charity has been wound up.

This was the decision that Trust Porirua made in 2018 when they transferred $5.5 million worth of assets to Nikau Foundation. Towards the end of its life, the Trust had been spending three times as much on its structure and administration than it was able to return to the Porirua community. Trust Porirua Chair Tim Sheppard said, “Trust Porirua and its assets needed to get to a place where they could work effectively for Porirua, with maximum returns to the community. This will help secure the future of funding for the Porirua region in a sustainable way, ensuring good investment and grant making practices for the long term”.

Photo: Tim Sheppard (Trust Porirua) and Chris Milne (Nikau Foundation) sign the agreement transferring $5.5m of assets to the care of Nikau Foundation, Wellington’s community foundation

While many funds held by community foundations are donor-led, all community foundations also have a general fund which contributes to the greatest area of need in the community. These general funds are growing and community foundations are increasingly utilising research and working collaboratively to assess where the greatest community needs lie.

The pooling of resources into community foundations allows investments to grow and achieves economies of scale. Collaboration of funds in this way will in turn increase the amount of funding available to communities. It ensures that a wide variety of causes will continue to be supported in perpetuity and sets up sustainable income streams for charities for the future. To learn more and to find your local community foundation visit their website.

We also talk more about community foundations, and options for charities looking to wind up, in our most recent blog, check it out here.

QUICK NEWS OF INTEREST 

Annual return checklist for small charities

As a registered small charity you are required to file an annual return form and a performance report that meets defined reporting standards. These are due no later than six months after the end of your financial year. We have developed a simple checklist that identifies the key things you need to record through the year to complete your annual return and performance report.

Click here to read our Annual return checklist for small charities.

Does your charity operate overseas?

Many charities operate overseas, for example by funding or delivering programmes (sometimes in partnership with a local organisation). If your charity has reported to us that it operates overseas, you may have received an email about protecting your charity against terrorist financing and other risks.

Charities operating overseas need sufficient policies, practices and controls in place to help identify and manage these risks. We have recently released a resource to support your charity to minimise any risk of their funds being used for illegal purposes overseas. The resource is available on our website here.

Community Governance Steering Group and Capability Builders

Last December the Community Governance steering group launched their national strategy. The goal of developing a national strategy is to strengthen, unify, enhance the value and support best practice in community sector governance. Working groups have been established for each of the outcome areas, and will come together between February and April 2020 and devise key actions in each area. The aim is to have all actions identified and collated into the national strategy by July 2020 and start implementing those actions from then on.

The next steps also include mapping out what already exists in the sector and identifying where there are gaps. If your work includes building capability in the sector, the steering group would love to hear about it. You can email your response to info@csinz.org.

Kiwibank cheque-free update

Kiwibank is saying goodbye to cheques next week. If you’re a Kiwibank customer you will no longer be able use cheques from Friday 28 February 2020.

To help their customers learn how to use payment alternatives, Kiwibank have a range of support available around the country. The Stepping UP digital banking workshops are courses designed to teach people how to use online banking. They are free and will be offered at community centres and libraries around the country. Kiwibank also has trained staff that are available in certain branches to work with customers to help them understand payment alternatives. You can find all of this information as well as resources and support on payment alternatives here.

Please note that while some organisations, such as ACC and Inland Revenue, are also moving away from cheques, Charities Services have no current plans to phase out the use of cheques.

UPDATES FROM WIDER GOVERNMENT

UPCOMING EVENTS

Charity Law, Accounting and Regulation Conference 2020

Another example of a successful collaboration is the Charity Law, Accounting and Regulation conference, put together by organisers from Charities Services, Chartered Accountants of Australia and New Zealand, and the Charity Law Association of Australia and New Zealand. 

The conference brings together accountants, lawyers, regulators and charities to understand the key issues facing the sector. This year’s theme is the “Sustainability of charities and their work”, and seeks to answer such questions as: Is the current model of charity in New Zealand and Australia sustainable? What might the future hold for new ways of ensuring that the good work charities do in our society continues, and what might the shape of charities take in the future? 

It is being held from 30 April to 1 May at Te Papa in Wellington and tickets are available now.

Governance Bites

Volunteering Northland are hosting monthly governance sessions, Governance Bites. These sessions are aimed at those in governance positions in community organisations who would like to gain confidence in their role.

The sessions will be held at the ASB Stadium in Whangarei and will also be live-streamed for those who are unable to attend in person. You can find more information about the sessions here.

Impact Unconference

Christchurch is hosting an “unconference” – a conference that is designed by attendees. As well as requiring a lot of collaboration, the theme is collaboration – and Charities Services is one of the supporters of the event. It will be held 8-9 May in Christchurch. You can find out more information here.

GOVERNANCE TIP

Start your year off well by looking after your volunteers 

Creative New Zealand encourages, promotes and supports the arts in New Zealand. Their work in capability building includes this substantive volunteer management toolkit. It is designed for arts organisations but can be used by any New Zealand community organisation.

The kit is intended for use by boards, managers and coordinators to help attract, manage and retain volunteers. It includes templates for a code of conduct, application forms, appointment letter, decline letter, and an interview plan and questions. 

Download the toolkit, and other great governance resources, from CommunityNet Aotearoa.

RESOURCES