Monthly update 9 - April 2006
In brief: This issue announces new guidance material, welcomes Carol Cunningham as Education Advisor, outlines two group registration pilots, answers your questions, and gives details of forthcoming Charities Commission presentations.
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New guidance material available
We’ve recently posted a range of material on our website to help your organisation with the registration process under the Charities Act 2005.
Visit our Guidance pages and you’ll find:
- a registration checklist;
- a glossary of terms;
- guidance on financial reporting; and
- more Frequently Asked Questions.
The registration checklist sets out which information and supporting documents you will need to complete Form 1: Application for registration as a charitable entity. You will find this useful if your organisation is starting to prepare information now, in readiness for the application process, which will begin later in 2006. The checklist is also available as a PDF so you can print it out and keep it handy.
The glossary currently includes definitions of many terms used in the application forms and officer certification form, such as “charitable purpose” and “duty of care”. As we progressively add new terms to the glossary, it will become a useful reference point for all things concerning the Charities Act and the Charities Commission.
We prepared the guidelines on financial reporting in response to widespread uncertainty within the charitable sector about:
- the level of financial reporting required under the Charities Act; and
- the potential impact of the Financial Reporting Act on registration requirements.
It is useful reading if you’d like an overview of the current financial reporting framework that charities operate under, or a snapshot of the background to the current proposals for the review of the Financial Reporting Act.
For more detailed information, please refer to the Review of the Financial Reporting Act 1993 on the Ministry of Economic Development’s website.
Full steam ahead with education
We welcomed Carol Cunningham to our team earlier this month as Education Advisor. Carol has already been busy preparing educational resources (e.g. the registration checklist), and is in the midst of planning a series of registration workshops throughout the country. We should shortly be able to let you know when and where these workshops will take place.
Carol has had a long and fond connection with the charitable sector, having volunteered for Plunket and her children’s kindergartens and schools, and formerly a paid employee for Barnardos, WWF, Victim Support and the Marsden School Development Office. She also has a strong training background, working most recently at the Nelson Marlborough Institute of Technology, where she co-ordinated the veterinary nursing programme and tutored Business Studies and veterinary nursing courses.
As is the case with many Charities Commission staff, Carol understands what it’s like to be at the coalface in the not-for-profit sector. She aims to provide the support that organisations like yours may need to better understand the registration process, making it as easy and as accessible as possible.
Group registration – where are we at?
Two consistent messages emerged during our targeted discussions last month with several charities considering group registration. The first was a call for further information on how the group registration process will work. The second was a desire to learn the benefits of group registration, particularly in terms of reporting obligations.
We are addressing both of these issues over the course of two pilot projects on group registration – one with a national church and another with a large health-related charity. These projects are both underway and will form the basis for final determination on how the group registration process will work in practice. We’ll report back on the outcomes in a future issue of Update.
Your questions
Q: Do we need to include a copy of our original IRD letter of confirmation with our application?
A: No, but if you have a formal binding ruling from Inland Revenue that has not yet expired (not a letter with a disclaimer saying that you have a charitable purpose), you may wish to include a copy with your application. It means that your organisation will be deemed to have a charitable purpose and we will only need to consider the qualification of your officers and your organisation’s name.
Q: Who decides whether my organisation gets tax exemption?
A: While registration with the Charities Commission is a prerequisite for tax exemptions on the grounds of charitable purpose, Inland Revenue remains responsible for administering the Income Tax Acts. Inland Revenue will publish guidelines for charities to help you understand the interaction between registration as a charity and the various tax exemptions available.
Upcoming events
The Charities Commission has partnered up with the Pasifika Education Centre to deliver two seminars for Pacific Island communities in Auckland next month. These seminars will cover:
- what the Charities Act means for you;
- the benefits of registration; and
- what happens once your charity is registered.
Both seminars will be held at the Pasifika Education Centre, 733 Great South Road, Otahuhu, from 7-9pm. Come along on 10 May to hear the presentation in English or 11 May for the same presentation in Samoan.
For more information, please contact Pauline Winter at the Pasifika Education Centre on 09 366 5050 or email pwinter@xtra.co.nz
We are also presenting at the following community events next month:
- Ashburton, 5 May – a voluntary/charities sector meeting hosted by the Ashburton Council of Social Services. For more information, contact Ashburton COSS on 03 308 1237 or ashburtonrc@xtra.co.nz
- Invercargill, 29 May – a workshop for the not-for-profit sector on registration under the Charities Act hosted by Invercargill City Council’s Southern Regional Support Group. For more information, contact Mary Napper on 03 211 1669.
- Dunedin, 30 May – two workshops on registration under the Charities Act, hosted by the Dunedin Council of Social Services. For more information, email Sue Russell on sue.dcoss@paradise.net.nz
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).