News of interest to charities in New Zealand No Images? Click here Message from NatashaKia ora tātou, Welcome to our first newsletter of 2019! I hope you had a restful break and you’re invigorated for the year ahead. Last week, the Department of Internal Affairs Policy Group released the discussion document for the modernisation of the Charities Act. Consultation is open until 30 April 2019. This is a great opportunity for you to get involved in shaping the future of the Charities Act, and how the Charities Register is managed. I encourage you to read the document, register for a community meeting if you can, and make a submission. Natasha Weight, General Manager, Charities Services The Policy Group has an update on the discussion document and consultation below. The modernisation may involve changes for Charities Services, but for now our efforts remain targeted on being a modern, responsive, risk based regulator. We are particularly focussed on supporting charities govern well, and you will see a short survey in this newsletter which I encourage you to fill out. It’s aimed at giving us a better picture of what charities need, and how we can help (without reinventing the wheel). Last week we met with the Sector User Group – a group of umbrella charities and other groups, to discuss, among other things, how the group operates and whether improvements can be made. One of the suggestions was that we communicate our conversations. We will be releasing a summary on our website to help assist wider discussions in the community. Inland Revenue also attended and gave an update on upcoming changes to the tax regime, especially for charities that rely on donations. We’ve published a guest blog on the changes from Inland Revenue, as well as other updates from the External Reporting Board and the Companies Office, detailed below. I’m grateful to all the community members who sacrificed their morning to talk to us. We will continue to be a responsive regulator, listening to the issues as they arise in the sector. On a lighter note, this month we said a fond farewell to our intern, Jessica Lee. The Department’s intern programme aims to build future capability by giving final year students exposure to different parts of our work. We were pleased to have Jessica join our whānau over the summer. Jessica is in her last year of studying accounting and law, and most of her work was supporting our senior accountant sample performance reports to see how charities are complying with the reporting standards. She also provided direct support to help charities meet requirements, and work across our group. She said that she most enjoyed the variety in the work, and working with the huge range of charities that exist, as well as the team who made her very welcome. We wish Jessica all the best for her final year of study and future career. Nāku nā Natasha Weight IN THE SPOTLIGHTUpdate from DIA Policy on modernising the Charities ActLast week the government launched public consultation on the Charities Act 2005. A discussion document has been released setting out the key issues we want to hear your views on. We’ve also produced a short summary ‘quick read’ here: Modernising the Charities Act 2005 Quick read (PDF, 5.15mbs) To support the submission process, 21 meetings will be held throughout the country in March and April. They’re filling up fast, but
there’s still space, so please click the link below and register to attend. Steve Kerr, Policy Manager Charities applying for registration – keep in touch, otherwise your application may be withdrawnIn our last financial year, we received 1,087 applications from organisations for registration under the Charities Act. Over 800 of these were approved. But around one quarter (268 applications) were withdrawn, either at the request of the organisation or because organisations did not respond to our correspondence during the registration process. To illustrate why applications are withdrawn, we have taken a look at these applications during the months of December 2018 and January 2019. Over this period, 32 applications were withdrawn, 12 (38%) at the request of the organisation and 20 (62%) because the organisation didn’t provide us with further information we asked for or didn’t respond to a notice about matters that might result in their application being declined. Over this same period, 222 applications were approved. None were declined. So what were the issues with the applications that were withdrawn? For 12 organisations, it didn’t look like their purposes were charitable. Many organisations have worthy goals, but we can only register them when we are confident that they have exclusively charitable purposes. More information about these purposes is available on our website. We let organisations that disagree with our assessment of charitable purposes know that they have the option of making submissions to the independent Charities Registration Board. The Board will then make a decision on the application. For 10 organisations, their rules document didn’t have adequate provisions to prevent individuals profiting from the charity, or to provide that if they stopped operating any remaining assets would go to charitable purposes. See our website for more information about these requirements. We always suggest solutions to these issues. Seven organisations didn’t provide sufficient information about the activities they planned to undertake to advance their charitable purposes. The Charities Act requires us to consider the activities of an organisation when considering an application for registration. Charities that have withdrawn applications can reapply at any time. There is no cost to applying for registration, and in our experience many issues are technical that can be easily fixed during the registration process. The key thing is to keep in touch. If your organisation is qualified for registration, we are here to help you achieve that outcome. SECTOR SHOWCASEVictoria Plus Programme, Victoria UniversityVictoria Plus student volunteers help plant trees in the Town Belt as part of the Wellington City Council’s plan to plant two million trees by 2020. Thousands of tertiary students have just returned to study this week, many of whom are keen to round out their learning and get involved in the community through volunteering. For many of our rangatahi (young people), volunteering will be their first taste of working as part of an organisation. Providing them guidance on how to get the most out of their time volunteering are university careers services and volunteer programmes like the Victoria Plus Programme, run by Careers and Employment at Victoria University of Wellington. In this issue we talk to Charlie Devenish, Civic Engagement and Leadership Programmes Manager and Jane Fletcher, Manager Careers and Employment at Victoria University of Wellington, who tell us more about what the Victoria Plus Programme offers and what motivates their students to volunteer. Victoria Plus is an extra-curricular, service and leadership development programme, free to all students enrolled at Victoria University of Wellington. Students have the opportunity to develop their employability and leadership skills, while exercising their social responsibility. Through community service, students can broaden their perspective, and reflect on self-development. Charlie says, “Students learn a lot of valuable skills and appreciate the opportunity to work in the community with people from diverse backgrounds.” The Programme currently has more than 1500 participants who connect with other students and services on campus as well as employers and people in the not-for-profit sector across Wellington. In 2018, students on the Programme volunteered for over 100 not-for-profits in the Wellington community including Zealandia, Volunteer Wellington, Community Law, Citizens Advice Bureau, Samaritans, SPCA and Youthline. There are also approximately 160 student run clubs on campus where volunteers participate in a range of activities from governance and leadership through to coaching and managing events. The Victoria Plus Programme can be completed to either certificate level (6-12 months) or award level (min 24 months) and is formally acknowledged on the student’s academic transcript. What kind of advice and guidance does the Programme provide?Taking some time out to plan is essential if students wish to get the most out of their volunteering. The Programme helps students to fit volunteer work into their timetable in a way that complements their studies. Jane points out students have multiple demands on their time. “Juggling study, paid employment, socialising and volunteering is something that takes careful planning. We are constantly amazed and inspired by how students make the time to give back to their community.” The Programme guides students by matching the nature of the volunteer work with the student’s interests, and the skills they have to offer, and those skills that they want to further develop. Doing a wide range of things is promoted to develop a broad spectrum of skills that prepare students for life after university. “This gives students valuable exposure to new opportunities. It starts students thinking about value alignment, what they want to do and what they need to study to get there”, explains Charlie. Students who received the Victoria Plus Award in 2018 were acknowledged by the University’s Provost at a formal awards ceremony in December 2018. How do you get a student to volunteer?Advertising volunteer roles at your local university is a great way to connect with students and word of mouth is often the first point of entry into the Victoria Plus Programme. The Programme has been running since 2008 and Jane notes that awareness in the community is growing with some students being encouraged to sign up for Victoria Plus by the charity they are currently volunteering for. “A large proportion of millennials have a strong social conscience. Many enjoy putting learning into practice while giving back and making a difference. We don’t have to twist their arm.” Surveys of the University’s alumni have shown a healthy rate of volunteering continues long after graduation. Victoria Plus uses a variety of channels to let students know about the Programme and will be talking to students in lectures during Orientation or ‘O Week’. Jane adds, “We get good support from the faculties who recognise soft skills such as communicating in a team or relating to others of different backgrounds can be fostered through work or voluntary experience.” The Victoria Plus Programme bridges the gap between students eager to give back to society and the voluntary sector. The Programme team provides students with practical advice and guidance so that they are able to learn things beyond the walls of a lecture theatre. You can learn more about the Victoria Plus Programme through their webpage and short video. Check out your local university or tertiary institution to ask about their voluntary programme. See also Student Volunteer Week, 1-7 April 2019. NEWS OF INTERESTFuture Prospects for Charity Law, Accounting and Regulation Conference 2019 – registrations openThis multi-disciplinary conference is bringing together a wide range of voices and perspectives. It will cover legal, accounting and regulatory issues associated with the charitable sector. The conference is hosted by the Charity Law Association of Australia and New Zealand and Chartered Accountants Australia and New Zealand, and supported by Charities Services. The hosts are bringing together a wide range of voices and perspectives to consider, in particular, some of the issues that are being addressed in the modernisation of the Charities Act. This conference will provide opportunities for rich conversation on the issues and what the framework of charity law could look like in the future. Among the speakers are leading figures from New Zealand and overseas, including: Hon Peeni Henare, the Minister for the Community and Voluntary Sector, Professor Matthew Harding from the University of Melbourne and chair of the Charity Law Association of Australia and New Zealand, Dr Oonagh Breen, Professor of Law, University College Dublin, Donna Flavell, CEO of Waikato Tainui, Justice Joe Williams, the first judge to have heard a case under the Charities Act, speakers from Inland Revenue, Charities Services, and leading academics and practitioners from New Zealand and overseas.
More information can be found on our website, and if you want a taster of what the conference is like you can find all the sessions from last year posted at the Charity Law Association of Australia and New Zealand. Governance surveyIn our December newsletter, we explained that we are looking at how we can help board and committee members improve how they govern charities. When we talk about governance, we are talking about all the ways your board oversees the work of the charity, and makes sure it is on track to achieve its charitable purposes. We’ve had a lot of feedback from members of the public – and we really want to capture more of your ideas through a short survey. The survey is for people who are on charity boards or committees, so we can get a sense where you are right now, and what resources you need. Are you submitting your Annual Return payment correctly?We’ve had a number of overpayments which have kept our Customer Support team busy processing refunds. Please check you’re paying the right amount for Annual Payments. The fee for submitting all documents ONLINE is $51.11. Submitting any document via POST will incur a total fee of $76.67. If you don’t upload your financial statements online, and either email or post them through to us, you have to pay the POST fee of $76.67. Please also check you’re paying into the correct bank account number (either type in DIA Charities Services or use 03-0049-0002007-06) with the correct bank account suffix of 06. Remember there is NO CHARGE if your total gross income is under $10,000. You can always check out our website instructions. Extensions for filing Annual ReturnsOne of the busiest times of year is coming up for accountants who help out charities. The 31 March 2018 balance date is the most common for all charities. Remember to give your professional advisors plenty of time to prepare your accounts (and any auditors plenty of time to complete an audit). We are seeing a number of professionals who represent charities asking for extensions for filing an annual return. Please make sure that the people who prepare your accounts are aware of your filing date and encourage them to file on time on your behalf. UPDATES FROM WIDER GOVERNMENTTax changes are comingWe have published a guest blog from Inland Revenue explaining how they are making it easier to give and manage donations. You should also be aware if you do not apply all of your funds to charitable purposes within New Zealand and you are currently a donee organisation, changes to the assessment of whether you qualify as a donee organisation will come into effect on 1 April. For more information see Inland Revenue’s webpage on being a charitable organisation and working overseas and its interpretation statement on donee organisations that apply funds overseas. Are you an incorporated society or incorporated charitable trust board, registered with the Companies Office?This is different to being a registered charity – but most registered charities are incorporated with the Companies Office. Later this year, changes are coming to the charitable trust and incorporated society registers – which will require you to update your information with them. You should update your all of your contact information on www.societies.govt.nz so the Companies Office can get in touch. We will also include updates in this newsletter and our website. For more information check out their website. Exposure draft for Public Benefit EntityThe External Reporting Board (XRB) recently issued an exposure draft for comment on a proposed standard on the definition of “What is a Public Benefit Entity (PBE)”. More information is available on our website. RESOURCES Social media We're now on LinkedIn! Follow us on Facebook We've now cracked 1,000 followers but we could always use one more. Subscribe to our YouTube channel for all Charities Services videos Follow us on Twitter @CharitiesDIA |