Monthly update 12 - July 2006
In brief: This issue announces the Charities Commission's inaugural Statement of Intent, form-filling workshop, answers your questions, and gives details of forthcoming Charities Commission presentations.
Download the PDF version [59 KB] to print this newsletter.
Statement of Intent
The Charities Commission has published its inaugural Statement of Intent. It contains our goals, strategic priorities and services to be delivered from 2006-2009. It also sets out our financial plans and measures.
Visit our website (www.charities.govt.nz) to view or download a copy. Alternatively, call us on freephone 0508 242 748 to request a paper copy and we’ll post one to you as soon as they’ve been printed.
Usability of forms
A small group of representatives from the charitable sector has been selected to put our draft forms to the test next month at a “form filling” workshop, arranged by the Department
of Internal Affairs.
The “form fillers” will be providing feedback on the usability of the forms. They will be paying particular attention to the instructional text and guidance notes that accompany each question.
This is not a full consultation exercise, but rather a final opportunity to check that the forms are as sector-friendly as possible. We will report on the outcome of the session in our August Update.
Your questions
Q: Will the Charities Commission take the same point of view as Inland Revenue has previously when reviewing applications for registration?
A: Although the Charities Commission and Inland Revenue are bound by different legislation, the Charities Act 2005 uses the same definition of “charitable purpose” as that used in income tax legislation, except that it is used to achieve a different result. The Inland Revenue definition
is based on a decision about income and the Charities Commission makes decisions relating to the organisation itself.
After 1 July 2008, when the tax laws change, organisations must be registered with us before they are eligible for tax exemption on charitable grounds. The Charities Commission makes the registration decision about the organisation; Inland Revenue has the right to review an organisation’s assessment of its tax position.
Q: I am completing a funding application form that asks for a Charities Commission registration number. Can you help please?
A: We suggest that you either leave the field blank, or complete it with an “N/A – Charities Register not open”. As you’re no doubt aware, the Charities Commission cannot provide your organisation with a registration number until it has been successfully registered under the Charities Act. That won’t be possible until after 1 February 2007, when the Charities Register opens to receive applications.
Financial reporting for Incorporated Societies
Incorporated Societies that register under the Charities Act will no longer have to file an annual financial statement with the Registrar of Incorporated Societies. The Companies Office will retrieve this information directly from the Charities Register. This applies as soon as your organisation is registered with the Charities Commission.
Incorporated Societies that are also registered under the Charities Act must otherwise comply with all reporting requirements of both Acts.
Upcoming events
The Charities Commission is presenting at the following community events:
- Auckland, 31 July – ASB Trusts’ Community Day, TelstraClear Pacific events centre, 770-834 Great South Road, Manukau City. For details, visit www.asbtrusts.org.nz or call toll free on 0800 ASB TRUSTS (0800 272 878).
- Nelson, 4 August – Community Funding Expo in Stoke, organised by Tasman Fundraising & Development Ltd. For more information, please download the flyer or email judene.edgar@clear.net.nz.
Check the events page on our website for any new events in your region, which are posted up as soon as they are confirmed.
Acknowledgment
We’d like to express our thanks to the NZ Trustees Association for circulating Update by post to their membership every two months. We are grateful, as always, for any support that our readers can provide to help us inform as many charitable organisations as possible about the Charities Act and its implications.
For more information
Visit our website at www.charities.govt.nz for the latest information on the Commission’s activities, and on the registration process.
Free phone: 0508 CHARITIES (0508 242 748)
Update is the monthly newsletter of the Charities Commission. If you wish to subscribe, simply email info@charities.govt.nz with your name, organisation and postal address or call us on free phone 0508 CHARITIES (0508 242 748).