One of our key roles at Charities Services is to encourage good governance in the charitable sector through education and the effective use of charitable resources. Governance, in its broadest sense, is about how an organisation is run, and good governance is at the heart of any successful organisation.

In this newsletter we would like to draw your attention to diversity and governance. The people who make up your board are critical to your charity’s performance, and having a diverse board is an important part of effective governance. Your board members should represent a range of perspectives so that different voices and views can be represented. We share more resources below about the importance of having diverse boards.

This newsletter also includes a lot of useful information for charities, including COVID-19 guidance, new funding options, key upcoming events and helpful resources.   

Before I sign off, I would like to reiterate that we are focussed on being a responsive regulator. We recognise that COVID-19 presents many challenges for charities. If you have any questions, you can contact us by email or by calling our free phone line (0508 242 748).

I would like to finish by sharing a whakataukī that was quoted in 1858 by Kingi Potatau, the first Māori King. It refers to the importance of making connections to ensure we work towards a common vision.

Kotahi te kohao o te ngira e kuhuna ai te miro mā, te miro pango, te miro whero.

Through the eye of the needle pass the white thread, the black thread, and the red thread.

Ngā mihi

Natasha Weight
General Manager

IN THE SPOTLIGHT

Information on COVID-19 for charities

As Aotearoa continues to feel the effects of COVID-19, we want to assure you that Charities Services is available to support registered charities.

We have updated the COVID-19 page on our website with new information and guidance for charities and those who want to support them. We will continue to update this page as further information becomes available. Our new webpage, Fundraising at COVID-19 Alert Levels 1, 2, 3, and 4, will be useful for charities wondering how they can fundraise at different alert levels. Our guidance on holding your charity’s Annual General Meeting (AGM) will be useful if your charity has had to cancel or postpone an AGM or other key events.

We will continue to run online one-on-one clinics every Thursday. If you have any questions about being a registered charity, you can sign up for one of our clinics to meet with a Charities Services or Hāpai Hapori Community Operations staff member over Zoom. Sign up for one of our online one-on-one clinics here.

Charities Services will be open for business at all alert levels. As always, we are here to help and we will be available via phone (0508 242 748) or email (info@charities.govt.nz).

Recent court decisions 

Many interested observers would have seen that there have been two successful appeals against recent registration decisions. These were a High Court decision involving Greenpeace New Zealand’s application for registration, and a Court of Appeal decision concerning Family First New Zealand.

When making decisions to register or deregister charities, Te Rātā Atawhai, the Charities Registration Board (the Board) applies the law based on the Charities Act 2005, and many years of court judgments.

The ability to appeal the Board’s decisions is important because key elements of charities law sit in these court judgments, or ‘the common law’. It is only when decisions are appealed to the courts that the interpretation of 'charitable purpose' can evolve to reflect changes in our society.

The Board does not play an active role in appeals to defend its decisions. It simply abides the Courts’ decisions, and applies those decisions in the future. As the Board is not a party, Crown Law usually appears to assist the Court on behalf of the Board. In the two recent appeals, the Attorney-General appeared in the traditional role of ‘protector of charities’.

At the time of sending this newsletter, Charities Services understands that the Attorney-General is still considering the decisions, so there is nothing further that we can say about these cases presently.

If you want to read the decisions, these have been posted on our website alongside brief statements from the Board, which acknowledge the decisions:

Greenpeace of New Zealand Incorporated v Charities Registration Board and Attorney General 

Family First New Zealand Incorporated v Charities Registration Board and Attorney General  

Hāpai Hapori Community Operations update

Hāpai Hapori is a business group within Te Tari Taiwhenua (the Department of Internal Affairs). They build community connection, support innovation and empower local people to create positive change in their communities.

Funding 

Hāpai Hapori offers a range of other funding for communities, organisations and individuals. You can find more information and funding dates by visiting their website.

Community-led development programmes

Waimate2gether, a group with a vision of a united proud community, is one of Hāpai Hapori's community-led development programmes. Community-led development is a planning and development approach where communities achieve their shared visions and goals by working together.

Waimate2gether recently received the community-led development programme’s largest single grant for the Waimate community’s White Horse Hill development project. The project involves restoring the iconic White Horse landmark, planting native plants, installing viewing decks and plaques on local history, and more. It has been described as one of the “major community projects in Waimate’s history.” You can read more about Waimate2gether’s project here.

From the Hāpai Hapori Community Operations Team.

New funding options available for charities

Lottery COVID-19 Community Wellbeing Fund

A new Lottery fund worth $40 million has been established to support organisations that have lost funding or have an increased demand on their services due to COVID-19. The Lottery COVID-19 Community Wellbeing Fund provides funding for one-off grants for community or social initiatives that increase the strength and resilience of communities responding to the impacts of COVID-19. The fund will prioritise hapū, iwi and community or social initiatives that have been impacted by the pandemic.

The fund is expected to be up and running in the last quarter of 2020 and it is intended that the one-off fund will remain open until all of its funding has been distributed.

Community Capability and Resilience Fund

The Ministry of Social Development is administering the Community Capability and Resilience Fund. $36 million is available to support communities over the next two years. It is available for community groups that support COVID-19 rebuild and recovery initiatives.

The first round of applications closes on 1 September 2020, with the second funding round opening in November 2020.

If you have any questions about the fund please email CCRF_2020@msd.govt.nz. Find out more and apply on the Ministry of Social Development website.

Do you have a great image of your charity's mahi?

Here is an example of what can make a great photo. Photo supplied by Surf Life Saving New Zealand

Do you want to show off the great mahi that your people do?

We are looking for photos that could be featured in our 2019/20 Annual Review. If you have a great image that you want to share with us, send your photos to info@charities.govt.nz. Include the word ‘Photos’ and your charity registration (CC) number in the subject line of the email.

Before sharing any photos of charities we will ensure a photo consent form is completed by those featured in the photos. We will also complete a compliance check to ensure the charity is meeting the financial reporting standards.

COVID-19 impact survey results released

The results of the COVID-19 impact survey have been released.

Over 1,400 community organisations participated in the survey, conducted by the Centre for Social Impact, Hui E! Community Aotearoa, Philanthropy New Zealand, and Volunteering New Zealand. The results paint a clear picture of how COVID-19 has impacted the community and volunteer sector. Common themes in responses outline the sector’s desire to continue to harness the generosity, collaboration and innovation that was activated during lockdown.

The results of the survey will help inform discussions around recovery and recommendations on how to move forward.

Find out more and read the COVID-19 impact survey report here.

SECTOR SHOWCASE

Belong Aotearoa

This month's sector showcase features Belong Aotearoa, a social change organisation that has supported over 70,000 newcomers to Aotearoa since 2003.

Formerly known as Auckland Regional Migrant Services Charitable Trust – ARMS, Belong Aotearoa has been delivering settlement support programmes that assist and inform people of migrant and refugee backgrounds for close to two decades.

Rochana Sheward, Chief Executive, leads a diverse team fuelled by a common passion of promoting the visibility, participation, and representation of migrants, resettled communities and minority ethnic groups.

Read the full sector showcase here.

QUICK NEWS OF INTEREST 

The International Day of Charity

Saturday 5 September 2020 is the International Day of Charity.

Celebrated annually and observed around the world, the day aims to increase public support for charitable causes and raise awareness of the great work the charitable sector does.

The International Day of Charity is celebrated on 5 September to commemorate the passing of Mother Teresa who was awarded the Nobel Peace Prize in 1979 for her lifetime of selfless work to overcome poverty.

The charitable sector makes a massive contribution to the lives of New Zealanders and this important mahi is worth celebrating. Thank you to the charitable sector for everything that you do for our communities, hapū and iwi in Aotearoa and beyond.

Charity Fraud Awareness Week

This year, Charity Fraud Awareness Week will be held 19-23 October.

Charities can be more vulnerable to fraud because of the nature of their work. Charities need to be aware of the risks and it is important that your charity knows how to detect and prevent fraud.

Charity Fraud Awareness Week promotes openness and honesty about fraud. It brings together everyone involved in the charity and not-for-profit sectors to raise awareness and share best practice on good governance.

Charity Fraud Awareness Week is led by the Charities Commission of England and Wales, and supported by a coalition of more than 40 regulators, charities, law enforcers, representative bodies and other not-for-profit stakeholders from around the world, including Charities Services.

Find more information and resources about Charity Fraud Awareness Week on the Fraud Advisory Panel website.

National Strategy for Community Governance Launch

The launch of the National Action Plan for Community Governance took place on Zoom on Wednesday 19 August 2020 with over 500 people attending.

The action plan was led by the Centre of Social Impact in collaboration with the Community Governance Steering Group. It was developed through a co-design sprint process drawing on the expertise, passion and determination of 150 people across the community, corporate, government, local government and philanthropic sectors. Charities Services has been involved in this work since it started and we have been impressed by the number of people from the sector who contributed their time, energy and wisdom.

The vision for this work is that all community organisations in Aotearoa are well governed. To achieve this, the Community Governance Steering Group needs your help to spread the word about the National Action Plan.

The Zoom presentation is available here and you can download the full National Action Plan for Community Governance report here.

If you would like to get involved in the project, contact the Programme Manager Jo Cribb at jo.cribb@csinz.org

Reminder to check your charity's audit requirements 

As charities continue to change, it is a good time to review the size of your charity and to consider if you have a statutory requirement to have an audit or review. If your charity's operating expenditure is over $500,000 for each of the previous two accounting periods, there is a statutory requirement to have an audit or review done by a qualified auditor. Find more information on size thresholds on our website.

Statutory audits and reviews must be done by a qualified auditor. There are several ways to find a qualified auditor near you:

• Chartered Accountants Australia New Zealand (CAANZ) offers qualified auditor recognition through the New Zealand Institute of Chartered Accountants (NZICA) which is their New Zealand regulatory body. You can find the NZICA Register of ualified Auditors on the CAANZ website.
• CPA Australia is another professional accounting body which also provides recognition. You can find out more about CPA Australia’s qualified auditor recognition on their website.

If your charity’s operating expenditure is under $500,000 for each of the previous two accounting periods, your charity’s rules may still require you to have an audit or review.  A copy of your charity’s rules is available on the charities register. Search for your charity, then look under the “charity documents” tab to find your charity’s rules.

While many rules documents specify the need for an audit, these can be time consuming and expensive, particularly for smaller charities. Contrary to popular belief, the main purpose of an audit is not to detect fraud. It is to express an opinion over your charity’s financial statements as to whether they present a true and fair view of the organisation, which can assure your stakeholders. Provided your charity has robust financial procedures in place, it may be worth considering changing your charity’s rules. Options include a less costly review of the accounts, or no review or audit at all. You may need to weigh these options up against any requirements of your funders to undertake an audit. For more information read our blog: To audit or not to audit.

Financial reporting in a COVID-19 environment 

Grant Thornton released a useful guide: Financial reporting in a COVID-19 environment. The aim of this guide is to indicate key areas that management and governing bodies should consider when assessing and reporting the impact of COVID-19 on the charity. Every charity will be affected in different ways and will need to make their own assessment of the impact on their financial statements. Also included are a number of useful links to other resources for charities.

Activating the potential of trust funds - Community Foundations New Zealand 

Registered charity Penzance Charitable Trust has provided local secondary school students with scholarships for the past 15 years.

The Trust recently decided to transfer their charitable trust to the Hawke’s Bay Foundation, one of 16 community foundations across Aotearoa. Community foundations are independent registered charities that manage funds in communities across the country.

Distributing funds to a community foundation is a great option for charities who want their cause to continue, without the obligations of being a registered charity. The pooling of resources into community foundations allows investments to grow. 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 and sets up sustainable income streams for charities for the future.

Read more about Penzance Charitable Trust and their decision to wind up and resettle their Trust funds with Hawke’s Bay Foundation here.

Podcast - Mele Wendt on culture, racism, and having tough conversations

Mele Wendt (Chair of the Community Governance Steering Group) talked recently to Steven Moe about her experience growing up in Samoa and Fiji, coming to New Zealand to study at University, her career, her governance career, and her substantial contribution to developing New Zealand's governance culture. Listen to the podcast here.

UPDATES FROM WIDER GOVERNMENT

GOVERNANCE TIPS

Governance matters

When appointing people to a governance role it’s important to be able to reflect the community you serve and the voice of the users of your service. Great boards realise that the best way to be successful is to involve a diverse range of people, with different perspectives and lived experiences. 

To have a diverse board you need to factor in a broad range of backgrounds and interests, also taking into account culture, ethnicity, gender, sexual orientation, age, disability and socio-economic status. Our Community have written a handy helpsheet on the “why” and the “how to” achieve diversity on your board.

Not-for-profit governance hub

The Institute of Directors New Zealand have released a new not-for-profit governance hub.

The hub includes the latest governance information, resources and development opportunities for officers on not-for-profit boards.

Explore the hub here.

The Institute of Directors New Zealand also has a great resource to support diversity of thought and perspective on boards. Read their Getting on board with diversity guide here.

Governance in a crisis for small charities

We recently released guidance that outlines key tips for the governance of charities when crisis hits.

It’s important for charities to be prepared for times of crisis. A crisis presents many challenges, so forward preparation allows boards to better support their charity when a crisis does hit.

This resource has been adapted from JB Were’s guidance on leadership in times of crisis.

You can read our resource here: Governance in a crisis for small charities.

RESOURCES