annual returns and financial statements
registered with the Charities Commission
The Charities Act 2005 will require all registered charitable entities (organisations registered with the Charities Commission after 1 February 2007) to submit an annual return to the Charities Commission. That annual return will outline their charitable purpose and activities and provide basic financial data, such as an organisation’s income, outgoings and net worth. This means:
- Incorporated societies that are registered with the Charities Commission will have to file an annual return with the Charities Commission instead of filing an annual return and financial statements with the Registrar of Incorporated Societies.
- Incorporated charitable trusts and unincorporated groups that are registered with the Charities Commission will have to file an annual return with the Charities Commission.
- Companies and other groups (e.g. co-operatives) that are registered with the Charities Commission will have to file an annual return with the Charities Commission as well as filing any other annual returns (e.g. with the Companies Office).
- Annual returns must be filed with the Charities Commission within six months of the end of the financial year.
- Accounts do not need to be audited for the Charities Commission. If your accounts are audited, you are asked to provide these. If your accounts are not audited, you are asked to provide your non-audited accounts.
Tip
These requirements come into force from February 2007, when the Charities Register will open. You will have to register with the Charities Commission by 1 July 2008 to keep your charitable tax exempt status – your current approval is not automatically transferred. Refer to the Charities Commission website (www.charities.govt.nz) for more details.
not registered with the Charities Commission
Incorporated societies
Under the Incorporated Societies Act 1908, every incorporated society must file a certified copy of its annual financial statement with the Registrar of Incorporated Societies. The annual financial statement will include the income and expenditure of the society for the previous financial year and the assets and liabilities, mortgages and secured loans affecting the society’s property as at the end of the financial year. The accounts do not need to be audited unless the rules of the society specify this.
Annual financial statements can be filed online at www.societies.govt.nz or a paper form can be downloaded and filed.
Tip
If you don’t file an annual financial statement, you may be struck off the Incorporated Societies Register.
Charitable trusts
Trusts and societies registered under the Charitable Trusts Act 1957 that are NOT registered with the Charities Commission, do not have to file annual returns.
Tip
Refer to the Companies Office website (www.companies.govt.nz) and Keeping it Legal (Fact Sheet 3 and Fact Sheet 6) at www.keepingitlegal.net.nz for more information on filing annual returns and financial reporting requirements.
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