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Charities Commission a Step Closer

Ministry of Economic Development, Wellington

Another milestone towards the creation of a Charities Commission is about to be reached, with the Charities Bill expected to be introduced into Parliament soon.

The Government announced its decision to establish a Charities Commission in 2002. The Bill providing for the creation of the Commission has been drafted and is expected to be tabled in the House within the next month.

The intent behind the decision to establish the Commission is to increase public confidence in the charitable sector by making it more transparent and accountable.

The Commission will do this through establishing a registration, reporting and monitoring system for charities. Registration with the Commission will be voluntary, however, charities wishing to be exempt from tax will need to register.

On registration, charities would receive an identification number that they would then need to display on fundraising and other written material, for example, letterhead. This would allow the public to easily identify charities that have registered. Charities would then need to file annual returns with the Commission and meet other compliance obligations to maintain their registration.

The register would allow the Commission to provide information to Government on the sector, including who benefits, and how, from tax assistance. The information would allow a greater insight into the contribution of the charitable sector and could also aid social policy development.

Once the Bill is tabled in the House, Parliament will refer it to a Select Committee for consideration. This committee will call for submissions from the public and sector.

The Association of Non-Governmental Organisations of Aotearoa is partnering with community trusts to plan a roadshow providing information and answering questions on the Bill. Meetings are expected to be held in about 22 locations nationwide. Ministry of Economic Development staff will also speak at these meetings.

Also after the Bill’s tabling, the Ministry of Economic Development will launch a website and freephone number, and distribute a brochure containing summary information on the bill and how to make a submission.


More details on these communication initiatives will be provided on www.med.govt.nz after the Bill has been introduced to the House. You can have your details put on a database to receive updates on this project by emailing info@charities.govt.nz. Staff from the Ministry will also be contacting groups in the charitable sector to ask whether they/their members would like to go on the database. More background on the Charities Commission project can be found on www.med.govt.nz.