We are focussed on initiating a project aimed at helping charities increase their effectiveness and governance success. We know from our conversations with a range of stakeholders that effective governance is essential for a charity to thrive, and that people are more willing to donate if they feel assured a charity is well managed. We are very keen to hear your feedback on how we can work with you to achieve a greater level of governance in the sector. Look out for more information on this.

At DIA we celebrate diversity and we recognise the importance of working effectively with Māori, Pacific Island and other communities. I am pleased to let you know that this year we are developing specific resources to support Māori and Pacific charities, and I look forward to updating you when the resources become available.

On a personal note, I am thrilled to be welcoming my first child in the coming weeks. During my maternity leave, Julia Wootton will be acting in my place until I return later in the year. Julia is the current General Manager of Customer Services at DIA and has a wide breadth of experience working in the public sector, so I know she will be fantastic in this role. Welcome on board Julia!

Nāku, nā

Natasha Weight
General Manager, Charities Services

REVIEW OF THE CHARITIES ACT

Plans to review the Charities Act beginning to take shape - A message from the Minister

The Policy Group within the Department of Internal Affairs is currently discussing initial plans, including draft terms of reference for the review, with a representative group of stakeholders. The review process will be highly consultative and I look forward to engaging with you, and the wider public, once I formally announce the review.

Your engagement and feedback on issues faced will be critical to ensure an effective and fit for purpose Act. I look forward to announcing more details in the next couple of months after discussing it with my Cabinet colleagues.

Heoi anō tāku mō nāianei

Hon Peeni Henare

IN THE SPOTLIGHT

#1 - Performance Reports 

It comes as no surprise that enquiries on ‘Performance Reports’ come in at first place on our list!

Performance Reports refer to the information that Tier 3 and Tier 4 charities attach to their Annual Return. They contain financial and non-financial information, such as the mission or purpose of a charity, its activities, and information about a charity’s financial position. Funders, donors and the public can read these reports to help them make informed decisions about donating money, volunteering or using the service. Submitting a Performance Report is compulsory for Tier 3 and Tier 4 charities and we have a vast amount of information on our website to help you get to grips with what the Performance Report should include. We have guidebooks, templates, videos and many other resources to guide you through.

#2 - Annual Returns

We receive a lot of questions about Annual Returns which is a good thing as it means that our message is getting out there – that is, if you become a registered charity you are required to file an Annual Return within six months of your charity’s balance date every year. Failing to file an Annual Return on time may mean that your charity may eventually be deregistered, so make sure you stay up to date with your returns. We’re here to help if you need more information about this.

Payment of the Annual Return fee is also a common query. We encourage you to first check if you do in fact need to pay a fee, and if you do, check the amount you need to pay as this varies depending on how you submit your Annual Return. Filing your Annual Return online costs less than filing on paper and it’s also much quicker as some of your information will already be pre-populated on the online form. Find out more about how to pay your Annual Return fee online.

#3 - Updating your charity’s details

Coming in at third place is how to update your charity’s details. It’s essential to ensure your information is up-to-date as it’s this information that funders, donors and the public can search for on the Charities Register. It also ensures that you are receiving important information from us to an up-to-date email address. Remember, you must let us know about changes to these six key areas within 3 months of the change: 

• the name of your charity
• the address for service
• change in the officers (including when an officer is disqualified)
• the balance date
• the rules
• the purposes of your charity   

You can update your details by logging onto your charity’s dashboard.

#4 - Obligations of being a registered charity

Being a registered charity brings with it a number of opportunities and obligations. For example, did you know that while a registered charity is eligible for tax exemptions, it must also operate in accordance with the Charities Act 2005, and it needs to report to Charities Services annually through an Annual Return? When we get enquires on the benefits and obligations of registration, we refer people to the dedicated section on our website, Considering registering as a charity? which has information to help you decide if registration is right for you and how to get started.

#5 - Concerns about charities

Last but not least on our list are queries on how to raise a concern about a charity.

As a regulator, it’s our role to promote public trust and confidence in the charitable sector and to investigate any suspected breaches of the Charities Act 2005. 

If you have concerns that a charity or its officers are involved in serious wrongdoing, you can submit your concern to us in writing. 

Click here to see examples of the types of issues that Charities Services looks at. There are some issues that Charities Services does not deal with so be sure to read the information on our website before submitting a complaint. 

Ending a charity - what to do with what's left

1. follow the process for winding up your particular type of organisation; and
2. read and follow your rules document carefully; and
3. apply any surplus to a charitable purpose, consistent with your rules document; and
4. Let us know you are going to wind up by removing yourself from the Charities Register through your charity’s dashboard. 

You can read our full blog here.

SECTOR SHOWCASE

One Percent Collective Trust

There’s a group of cool kids in Wellington flipping the funding model and we reckon it’s a story you should hear about.

We sat down with Pat Shepherd, founder of the registered charity One Percent Collective Trust and “Chief doer of things” to find out what makes them tick.

“Creativity and generosity blended into one,” says Pat. One Percent Collective exists to simplify generosity and regular giving by inspiring people to give 1% of their income to Kiwi-based charities on a regular basis. 

It all started as an idea in the shower after a volunteering stint on the Thai/Burma border where Pat says he saw the challenge of securing long term funding for charities and engaging a younger generation to give. “No one wants a phone call over dinner, a key ring in the mail or to be hassled on the street to sign up to a charity,” he thought. "There must be a better way!"

Pat had an idea that you don’t need to be a superhero to save the world – you just need regular people to give a little regularly so charities can spend less time fundraising and more time doing their mahi (work).

Pat set about encouraging his creative friends to give 1% of their time, mates to give 1% of their income and businesses to give 1% of their profits to charities and the collective was born. Five years later, they’ve got over 400 people giving 1% to 11 Kiwi-based causes they support and have raised over $600,000 dollars, plus a posse of awesome humans and businesses giving time and mana to their mission.

Support from the Future 50 and corporate sponsors means 100% of the money donated by people giving 1% goes to their chosen charities (with the help of some clever Xero accounting software). Check out One Percent Collective's partner charities and how their partnership works here. 

One Percent Collective's tips for other charities

• Do you know 20 people who love what you do? Would they give you $20 every week towards your mission? Why not start with your Dad?

• Flip the model – Pay it forward and back. Instead of selling tickets to a fundraising event, hold an event for your regular donors to keep them engaged and loyal.

• Don’t be afraid to ask for favours even if it's just an hour of someone's time. Chocolate is currency!

• Read this article for inspiration.

• Be open, be human and be real. Share your stories, warts and all.

UPCOMING EVENTS

Current Issues: Exchange and Non-Exchange Revenue (Tier 1 and Tier 2 Charities)

Chartered Accountants Australia and New Zealand (CAANZ) are hosting a webinar this month on charities accounting: Current Issues: Exchange and Non-Exchange Revenue. The session will be held live on 20 February 2018 at 11.00am.

In this webinar, Brayden Smith of Grant Thornton and Jamie Cattell of Charities Services will discuss current charity accounting topics and seek to address some of the practical issues that have arisen for members in applying the new Public Benefit Entity (PBE) standards.

Click here for further information or to register for the CANNZ webinar.

Accounting for Leases by Charities

If you're a Tier 1 or Tier 2 charity, this webinar by the External Reporting Board (XRB) may be of interest to you.

The International Public Sector Accounting Standards Board (IPSASB) has issued for comment Exposure Draft 64 Leases (ED 64). This contains proposals for how leases are accounted for and disclosed, including leases at below-market value (concessionary leases).

The proposals remove the distinction between an operating lease and a finance lease. Instead, the lessee and lessor apply a right-of-use model to account for leases.

The XRB will be hosting a webinar on Thursday 15 March to outline the proposals in ED 64 and to encourage attendees to raise any concerns they have with the NZASB and/or the IPSASB. They will also be holding seminars in Auckland, Wellington and Christchurch towards the end of March.

Click here for more information and to register for the XRB webinar.

The Charity Law Association of Australia and New Zealand (CLAANZ), in conjunction with Chartered Accountants Australia and New Zealand (CAANZ) and Parry Field, will be hosting the Perspectives on Charity Law, Accounting and Regulation in New Zealand conference.

The conference will cover topics on both the legal and accounting issues associated with the charitable sector and aims to:

• inform and educate on important topics for charities
• strengthen links, contacts and collaboration within the sector community; and
• share lessons learnt and best practice that have worked for others, both within New Zealand and beyond.

We hope that this conference will inspire action and innovation, help inform the upcoming review of the Charities Act and improve trust and confidence in the sector.

Date:
26 & 27 April 2018, 8.30am-5.00pm

Venue: 
Museum of New Zealand Te Papa Tongarewa

Pricing:
One day registration fee: NZD $300 (earlybird*: $275.00)
Two day registration fee: NZD $500 (earlybird*: $440.00)
Conference dinner (Thursday evening): NZD $110.00
*Earlybird pricing available until 28 February 2018

Registrations for the conference are now open. 
Click here to be redirected to the registration page on CAANZ's website.