The team have created articles and resources to help you make sense of the changes and what they mean for your charity. You can find those on our website and later in this newsletter. We’ll continue to put out supporting information and resources to assist you in adjusting to the changes, and we’ll let you know about them here and on the hub. If you still have questions about how the changes might affect you, please get in touch with us.

Two weeks ago, we announced that this year’s annual meeting will be held online on Tuesday 14 November 2023. Holding the meeting online allows more of you to attend and participate from across the motu (country), while also ensuring you get the most out of it and making the best use of your time and our resources.

I am really looking forward to attending my first annual meeting and getting to engage with you all.

To facilitate this, we created a short survey asking what time suits and some of the topics you would like to hear about. This annual meeting is for you, and we’re very keen to hear what you will find most valuable.

The survey closes tomorrow night (6 October 2023). Please take the time to have a look if you haven’t already by following this link. Once this has closed we will advertise registration and agenda topics for the hui.

We also want to make sure that when we do meet kanohi-ki-te-kanohi (face to face) it’s all about supporting you. So, in addition to announcing the online annual meeting, we announced a series of sessions across the motu where you can meet with us in person. We’re planning these at the moment, and more information will be coming to you soon.

We are always here to help. If there’s anything we can do to support your charity with filing, or if you have any general questions, please get in touch with the team at info@charities.govt.nz.

Nā Charlotte Stanley
Kaiwhakahaere Matua, General Manager

Changes to the Charities Act

What's happened? 

On 5 July 2023 the Charities Amendment Act 2023 came into force, bringing with it a number of new requirements and changes. We have been creating guidance and resources to help you make sense of what this all means for you.

The immediate changes, which took effect 5 July 2023, mostly involved us improving the information on our website and beginning work for implementation:

• Forms consultation began (closes 24 October 2023).
• Reviewing and improving the information on our website
• Maximum size of Te Rātā Atawhai increased from three to five
• Model rules were published on our website

In this newsletter we’re looking at the changes that came into effect 5 October 2023, three months since the bill came into force.

Don't forget to check the Charities Act Hub on our website to keep up to date with detailed information on these and other upcoming changes.

Forms Consultation

Consultation on our forms is open until 24 October 2023, so there’s still plenty of time for you to have your say.

Make sure you check them out on our website and let us know your thoughts by completing the online feedback form.  Alternatively, you can email your feedback to formsfeedback@charities.govt.nz.

What’s Happening?

Definition of Officer

Who counts as an officer is defined under the Charities Act 2005 (the Act). As of 5 October 2023, this definition has changed, allowing charities to represent themselves more accurately on the register. This change also helps the register better reflect the delegation of powers and responsibilities in charities.

The main thing to remember is the new definition doesn't remove any of your currently qualified officers, but you may find you need to add more. We have created an article that explains the changes, to learn more follow this link. 

Review Your Governance

One of the key changes to the Act is the requirement for your registered charity to review its governance procedures at least once every three years. This change is about ensuring your officers are regularly thinking about how your charity runs, and whether your rules and processes are still fit for purpose.

We have an article that explains this change and how it affects your charity. You can find out more by following the link to our website.

Charities will be able to let us know they’ve reviewed their governance through their annual returns. A question on this has already been drafted as part of our current forms consultation. Make sure you check it out and get your feedback in before 24 October 2023.

Application Response Time

If we need you to provide any additional information as part of your application for registration, you now have two months to respond instead of 20 working days.

It is always good to provide information as soon as possible. The sooner you provide the necessary information, the sooner an organisation can be considered for registration.

Consultation on Publications

This formalises our existing process, where we consult with the sector on any significant guidelines that we publish. In practice, this means we’ll come to you and the Charities Sector Group when we’re considering publishing guidelines on new or changed processes that might affect the sector. Doing this means any resulting guidance and material will be as ‘fit for purpose’ as possible, and bring as much value to you as we can.

Disqualification of Officers

Te Rātā Atawhai, the independent Charities Registration Board (the Board), now has powers to disqualify officers for serious wrongdoing without having to deregister the charity they are associated with. This would follow the completion of an investigation. Previously an officer could only be disqualified if their charity was also deregistered.

What’s Coming Up?

From 5 July 2024, the third set of changes will come in. This will include the ability for people to appear in person to speak to the Board, and for charities to appeal decisions made by us or the Board to the Taxation Review Authority (before the High Court).

We will keep you updated on these changes as they get nearer. Please keep an eye on this newsletter, or visit the Charities Act Hub on our website.

The External Reporting Board (XRB) Updates

Proposed changes to the reporting tier thresholds

The accounting requirements for registered charities are set by the External Reporting Board (XRB). Under this, charities are grouped into one of four reporting tiers depending on their size. The reporting tier sets out which accounting standards a charity must follow.

What tier a charity falls into depends on whether their annual expenses are over specific thresholds.

The XRB are currently looking at increasing the Tier 2 and Tier 3 thresholds and are seeking feedback on their proposals.

What thresholds are changing?

The XRB are proposing to increase:

• The Tier 2 threshold from $30 million to $33 million.
• The Tier 3 threshold from $2 million to $5 million.

How can you provide feedback?

You can provide feedback on the XRB website where you will also find a consultation document which explains the proposals in more detail.

Alternatively, you can send your comments to them at accounting@xrb.govt.nz

• The consultation closes on 26 January 2024.

Incorporated Societies Updates

If your organisation is an incorporated society, you will need to start the re-registration process with New Zealand Companies Office. Incorporated societies can apply to re-register under the new Act any time from 5 October 2023 to 5 April 2026.

There are a few things you will need to prepare before you’re ready to re-register though, so check out the Companies Office website for details on what to do.

Resources

Read the plain version of this email here.