Monthly update 06 - January 2006
In brief: Update on progress, new staff appointments, update on draft forms, guidance on registration process, revised guide due soon.
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2006 an important year for charities
This year New Zealand’s charitable sector will experience one of its most significant changes to date. The Charities Commission is on track to begin receiving applications for registration under the new Charities Act from mid-2006.
While registration is voluntary, existing charitable organisations will have until 1 October 2007 to register before their tax exemption is affected. These organisations will still be able to register after this date, but may be required to pay tax for the extent of the non-registration period.
This year, the Charities Commission will also begin to address a request from the sector for more education and support. One of our major functions is to provide charities with assistance and guidance on good governance and management. By developing this function, we will help to foster the valuable contribution that the charitable sector makes to New Zealand society.
New appointments
We are pleased to announce the appointment
of Adrian Shields as Senior Policy Advisor and Richard Niven as Senior Solicitor. Adrian’s appointment completes our management team
of five reporting to the Chief Executive:
Deborah Walker Communications & Education
John Tinkle Registration & Contracts
Liz Fellows Legal Counsel
Barry Hayman Corporate Services
Adrian Shields Senior Policy Advisor
Update on forms
The latest draft registration forms, which have been revised to address feedback from the charitable sector, will be posted on the Charities Commission website
http://www.charities.govt.nz/news/forms.htm during the w/c 30 January.
If your organisation is considering applying for registration under the Charities Act 2005, please take advantage of this preview to get a feel for the level of information the Commission is likely to ask you to provide.
We have incorporated a great deal of helpful suggestions from 70 written submissions on the proposed forms, including:
- an overall simplification of the language
- the removal of date of birth from the Officer Certification form
- the addition of a privacy statement on all forms
- further clarification around which information will not be made available to the public.
For a detailed commentary on what changes have been made to the forms and why, please visit the Department of Internal Affairs website
http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/About-us-Charities-Commission-Summary-of-Submissions-on-Forms?OpenDocument.
This latest version of the draft forms is currently awaiting consideration by Cabinet and final drafting by the Parliamentary Counsel Office before being referred to the Governor-General. We expect the forms to be confirmed by regulation and posted on the Charities Commission website in their final format by the end of April 2006.
Guidance on registration
For most organisations, an application for registration under the Charities Act 2005 will require completing and lodging just two forms:
- application for registration of a charity; and
- the officer certification form.
While we do not expect the registration process to be difficult, we will be progressively posting useful material on our website to guide you through it. Look out for our registration checklists soon and information on what constitutes charitable purpose.
Submissions for group registration
Organisations wishing to apply for group registration will need to accompany the registration and officer certification forms with a submission.
This submission should state the reasons why the
Commission should treat the group as a single entity. In particular, the Commission will require:
- the details of each charity covered by the application, e.g. the name, officers and rules of each entity – to determine whether they all qualify for registration;
- information relating to the degree of affiliation between the entities and similarity of charitable purposes.
The submission should also outline any requests from the parent entity as to how it will comply with sections 40 and 41 of the Charities Act 2005
(annual returns and change requests).
The Charities Commission Board will treat submissions for group registration on a case-by-case basis. The Board will decide first whether it will treat the group as a single entity (using the criteria set out in the Act); and second, the terms and conditions that the single entity will follow.
We will shortly be speaking with a number of potential groups about our proposed approach to this form of registration.
The Commission will offer advice to organisations wishing to register, or considering registering, as a group to help them make their decision and registration application.
Revised Guide to the Charities Act
We expect to publish the new edition of
A Guide to the Charities Act in February. As outlined in Update last month, this latest version will contain minor but important changes. We encourage you to familiarise yourself with the
new content.
The revised Guide will be available on the Charities Commission website and posted out to Citizen’s Advice Bureaux, libraries and others who have recently requested hard copies.
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)
These updates will be provided monthly.
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).