Ngā kōrero a Charlotte (Message from Charlotte)

Kia ora koutou

Firstly, I would like to acknowledge all those affected by the Port Hills fires. Thank you to all volunteers playing a vital part in supporting the community at this time.

Charlotte Stanley, General Manager

We’re already two months into 2024 and, like many of you, the team at Charities Services have hit the ground running.

Part of our workplan for this year is developing our strategy to guide us toward regulatory excellence. This mahi (work) will support timely decision making, greater transparency, and clarity of our role for you, the sector.

We will be increasing our targeted engagement to support the areas you’ve identified, and prioritising effective guidance for the changes occurring later in the year. Your feedback has played a valuable part in shaping what this engagement will be like, especially for our upcoming engagements across the motu (country). Information on the first session to be held in Wellington next month is below. If there is anything you want to hear about or see covered at one of these events, please let us know by emailing info@charities.govt.nz.

In this edition of our newsletter, we're delighted to include an introduction from our Minister of Community and Voluntary Sector, the Hon Louise Upston. You can hear directly from the Minister below.

A number of significant changes are coming into effect this year, including the new Tier 3 and Tier 4 reporting standards. Tier 3 and Tier 4 registered charities will need to use these new standards for reporting periods beginning 1 April 2024 onwards. We are working with the External Reporting Board to provide plenty of information and resources on our website to make sure you’re prepared for how these changes will impact you.

I also want to draw your attention to further changes to the Charities Act 2005 (the Act), which come into effect from 5 July 2024. These include changes to how people can object to intended decisions of Charities Services or Te Rātā Atawhai (the Charities Registration Board), and appeal decisions made by Charities Services or the Board.

If you haven't already, we encourage you to explore the Charities Act Hub on our website. We have received great feedback about how easy this Hub makes understanding the changes brought in by the Act amendment. We will be keeping this up to date with the latest information, along with providing regular updates in our newsletter.

Before I sign off, I want to take a moment to acknowledge the one-year anniversary of Cyclone Gabrielle. The past year has been a testament to the resilience of communities affected by this devastating event and the tireless efforts of numerous grassroots volunteers.

Ko te tūmanako, he tau tino pai tēnei ki a tātou katoa!

Wishing everyone a fantastic year ahead!

Meet the new Minister of the Community and Voluntary Sector

Photo: Minister of Community and Voluntary Sector, the Hon Louise Upston.

Warm greetings to you all,

It is a privilege to step into the role of Minister for the Community and Voluntary Sector. I am impressed by the work that charities continue to do, as you tackle our most pressing community issues. You are the driving force behind tangible and meaningful impact in our communities, and as your new Minister, I am committed to supporting your important work.

A bit about myself – I proudly represent Taupō as a member of the National Party and have since 2008. In addition to overseeing the Community and Voluntary Sector portfolio, I am also the Minister for Child Poverty Reduction and Minister for Social Development and Employment.

My public service journey includes, becoming a Cabinet Minister in 2016 when I assumed the role of Minister of Corrections. I have also been the Minister for Women and Land Information, and, taken on Associate Minister roles for Tertiary Education, Skills and Employment and Primary Industries.

I enjoy getting out and engaging with people from all walks of life, and I am passionate about helping New Zealander's succeed. I look forward to working with you all to strengthen our nation, where charities remain key drivers of positive change.

Changes to the Charities Act

What's happened?

The Charities Act Hub is the best place to stay up to date with changes to the Charities Act.

All the changes that have already happened are currently listed on the hub. This includes the updates to the definition of officers, and the new requirement to review your rules every three years.

We want to thank everyone who provided feedback on our forms updates. We are currently working on the development of these forms, and your feedback has been invaluable. We will post updates on this process to the Charities Act Hub on our website when these become available.

What's coming up?

We are working to implement the final set of changes, including the process for appealing decisions to the Taxation Review Authority and the ability to have objections heard by decision makers. These changes come into effect on 5 July 2024, and will mean charities have more avenues to appeal decisions made by Charities Services or the Charities Registration Board.

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.

In The Spotlight

Engagement 2024

We have five in-person events planned for this year where you can come and meet us and have your questions answered:

Te Whanganui-a-tara/Wellington - 26 March 2024, 10:00am - 12:00pm
Ōtautahi/Christchurch - May 2024
Kirikiriroa/Hamilton - July 2024
Tāmaki Makaurau/Auckland - September 2024
Ōtepoti/Dunedin - November 2024

The first event is in Wellington on 26 March from 10:00am - 12:00pm in the main hall of Johnsonville Community Centre. It will include an information session on reporting and tips for running your charity. Following the formal presentation there will be tea and coffee available, and a chance to meet and ask questions with some members of our team.

To sign up for the Wellington event, follow this link. This event is completely free and has capacity for 100 people, so book in while you can!

We will keep you updated on the other upcoming events happening throughout the year using this newsletter. If you are not in one of the areas we're visiting, or if you are unfortunately unable to attend, you can email info@charities.govt.nz or book a one-on-one clinic with us.

And don’t forget, if there is anything specific you want us to cover in any of these sessions, please email us let us know!

Annual Reporting

Do you know who will be preparing your financial statements? Will they need to be audited or reviewed? What are your charity’s significant activities, and how are you going to tell the story of your financial year?

It’s never too early to make sure you’re ready to report, and we have a range of information and guidance on our website to help you prepare.

First you’ll need to know your balance date, which is the end of your financial year. Your due date for reporting is 6 months from the end of your financial year. We have a timeline on our website to help you with this.

If your charity reports at Tier 3 or Tier 4, these resources have been designed just for you! And if you’re new to reporting, we have a short video to help you understand what is required as well as what is changing.

Some smaller Tier 4 charities may also be able to use the simple Tier 4 performance report template. This template is suitable for charities with a single bank account, few or no significant resources or commitments, and that have not entered into any complex transactions (such as multi-year grants or controlling businesses).

Remember, if you have any questions related to reporting, please email us at info@charities.govt.nz or book into a clinic to receive some one on one support.

Quick news of interests

Charities Register formatting issues?

We recently updated the Charities Register website to improve accessibility, and have received some reports of formatting issues while using the Register. These can be fixed by clearing your web browser’s memory (the cache). This is a simple process, that anyone can do. We have information about how to do so on our website.

Entries open for 2024 New Zealand For Purpose Reporting Awards

Has your charity done a great job on your financial reporting? Your efforts could be recognised in the 2024 New Zealand For Purpose Reporting Awards.

Information about the reporting awards and the entry form can be found on the CA ANZ website.

Entries close on Wednesday 28 February 2024. For any questions, please contact Maike Scherer from Chartered Accountants Australia and New Zealand.

Governance Matters

Governance Resources

The start of a new year brings a renewed sense of passion for many people involved in charities. It is important to keep focused on your purpose, delivering what you were set up to do and remaining true to your core charitable purpose.

Equally important is the smooth governance of your charity. Luckily there are a number of resources and tools that have been created to make governance easier.

You can reach out to one of the Hāpai Hapori Community Advisor s, who live and work in their local communities. They will be able to point you to local capability builders in your area and advise you of potential funding available. There are also many great websites to look at for resources and inspiration.

Start the new year off by checking out some of the websites listed below.

Community Networks Aotearoa - Tick for Governance course
CommunityNet Aotearoa - An online hub of resources designed to strengthen organisations and communities
Community Governance Aotearoa - Supporting community governance in Aotearoa
Institute of Directors NFP hub – Not-for-profit governance hub
NZ Navigator – An online self-assessment to help identify your organisation’s strengths and weaknesses
Planning and collaboration on Digital Stuff We Love

UPDATES FROM WIDER GOVERNMENT

Welcome to 2024 and happy new year from Inland Revenue

Business advisory service

If your charity is thinking about moving in a different direction this year, or if you’re newly formed and want some advice, Inland Revenue is here to help by offering a free advisory service delivered through their community teams.

Community teams can offer tax education to new businesses and small organisations, like charities, sports clubs and other not-for-profit entities. They operate from most of Inland Revenue’s offices, and regularly travel to other areas.

Business advisory visits are available to individuals or organisations already operating or considering setting up, and can be really useful for organisations where people in voluntary positions frequently change.

For more information, please visit Requesting a business advisory or social policy visit (ird.govt.nz)

Have your contact details or members changed for 2024?

Please make sure your organisation’s contact details and the names of current members, executive officer holders or trustees are updated with Inland Revenue. This makes the process smoother and faster when you need to get in touch.

To update any details, please use your organisation’s myIR account. For more information, please visit Update my details (ird.govt.nz) or email Inland Revenue’s charities team at charities.queries@ird.govt.nz.

Charities – business income exemption

Inland Revenue are currently consulting the public on a new interpretation statement, which considers how and when tax exemptions apply to the income charities make from business activities.

The consultation period closes on 15 March 2024. Find the interpretation statement and fact sheet on Inland Revenue’s website at Charities – Business income exemption (ird.govt.nz).

Feedback can be sent to Public.Consultation@ird.govt.nz.

Incorporated Societies updates

Did you know that around 7,000 incorporated societies are also registered charities?

The Incorporated Societies Act 2022 (the new Act) came into effect in October 2023. Existing incorporated societies (those incorporated under the Incorporated Societies Act 1908) will need to re-register under the new Act with the Companies Office if they wish to remain as an incorporated society. Societies who decide to reregister should do so as soon as practicable, and before April 2026.

Key points to know about reregistering are that your society will need to:

Provide a constitution that’s compliant with the new Act and includes an appropriate dispute resolution process.
Have a committee that’s responsible for managing the operation and affairs of your society.
Have at least 10 members and ensure all new members provide consent to becoming a member.
Provide at least one person’s contact details.

Once you’ve re-registered with the Companies Office, you’ll need to let Charities Services know about the changes to your rules.

The Companies Office looks after the Register of Incorporated Societies (a different register from the Charities Register) and there are lots of useful resources and information on their website to help you with the re-registration process.

You can find out about the key changes and more information about re-registering on their website.