We receive a number of requests for information about non-profit organisations and charities in New Zealand and their organisation etc.

In the hope that it may assist, we provide the following comment. We wish to stress that not-for-profit.org.nz cannot accept any responsibility for any information provided here. This information is provided in good faith and any errors or omissions are regretted. Please let us know of any errors you find.

As the government information pages change frequently there may be errors in these links. Please advise the webmaster of any mistakes you note in these pages.

" I would be grateful for information about any legal requirements that must be met with respect to the period of time that a trust must retain any documents, such as minutes of meetings, financial records, correspondence, etc. "

"The formal records of a trust (agendas and minutes and formal reports to the trustees etc) must be kept for the lifetime of the trust, and financial records must be kept for 7 years per IRD requirements -though many trusts archive these also.
As I understand it, correspondence and minor papers can be judiciously weeded after a suitable period.
I have no idea who checks these things. My guess it that they only get checked if there is a problem so on this basis, many trusts keep everything!
I am afraid I cannot point you to a law or regulation, that’s a job for the lawyers but I got this advice from a lawyer a little while ago and believe it is sound."

I have heard that PAYROLL GIVING is being introduced into New Zealand? can you tell me more about it?

Minter Ellison Rudd Watts lawyers have produced a comprehensive 'tax update' newsletter about the proposal which, comes into effect on 7 Jan 2010.

The company offer to assist to help with the necessary arrangements(eg agreements between employers and employees, agreements between business and donee organisations).

Read the newsletter here (linked with the approval of the company)

Read the IRD factsheets on the scheme

I understand the rules about tax rebates have changed. Can you tell me more about it.

From 1 April 2009 you can claim a credit (formally a rebate) on your donations to registered charities up to your taxable income. see this page for information

I want to form a non-profit organisation. How do I go about it ?

The relevant information is contained on the website of the Registrar of Incorporated Societies and there are Fact Sheets on the Charities Commission website. You should consult a lawyer over legal requirements, but the requirements are quite clear (if a little tedious!). However we also know of one consultant (note: NOT a legal professional) who may also assist for a modest fee.

Where can I find information about Charities and the 2005 Charities Bill?

Have a look at www.charities.govt.nz - the Charities Commission website. Contact them through their website for copies of their fact sheets.

Where can I find general tax information for NZ non-profit organisations?

Visit the appropriate IRD website

What do I have to do to get a tax exemption for a NZ non-profit organisation?

Have a look at: www.ird.govt.nz/notforprofits/

I understand that the limit that one can claim for donations to a charity have been increased. Is this correct?

Yes, good news for charities and for donors. Please have a look at this page for a little more information.

What is the difference between a Charitable Trust and an Incorporated Society. which is best for me?

The differences are clearly explained on the Registrar of Incorporated Societies website. Which is the most suitable will naturally depend upon your group's circumstances. Detailed information about charitable trusts and information about incorporated societies are also available on the website.

What do I have to do to set up an Incorporated Society?

Check the Department of Internal Affairs website or the Registrar of Incorporated Societies website (Go to 'Information Library')

What are the benefits of forming an Incorporated Society?

as above

What are the obligations after forming an Incorporated Society?

as above

Where can I find out if a charity is registered with the NZ Inland Revenue Department to accept receipts which are eligible for tax deduction purposes?

The key phrase here is 'donee status' or 'donee organisation' if you are searching the IRD website.

http://www.ird.govt.nz/donee-organisations/donee-H.html

Note: apparently inclusion on this list indicates that a society IS registered for donee status but non-inclusion does not necessarily mean that the organisation is NOT so registered!

Do you know of a good fundraising resource in NZ?

Try www.charity.org.nz. Forsee Communications publish a monthly sponsorship journal dedicated to the NZ situation

How many non-profit organisations (charities) are there in NZ?

The NZ Government Statistician says there were 97,000 nfp's in NZ in 2005! <link>. Not all of these will qualify as 'charities' since some organisations exist for purposes deemed 'political' and thus do not meet the 'charitable purposes' test. Likewise, some trusts will not register with the Charities Commission or Registrar of Incorporated Societies as (for example) they do not solicit donations from the public or seek tax exemptions.

(updated 5/09)

How can I check whether an organisation is incorporated or is a registered charity?

Go to www.societies.govt.nz and look under 'search the register' . (You can get a copy of the certificate of incorporation, download financial statements and consitutions etc from this site.) NB Be sure to check alternatives - for example "The xxx" if "xxx" does not deliver a solution.

Likewise, the Charities Commission has a register of those organisations which have registered with it.

I want to form a non-profit organisation. Do I need to consult a lawyer?

The simple answer is 'No'. You do not NEED to consult a lawyer. All relevant information is contained on the website of the Registrar of Incorporated Societies and there are Fact Sheets on the Charities Commission website. Some other information is on the IRD website.

If your proposal is complex or is likely to present legal difficulties you may be wise to consult legal advice. Many non-profit groups have access to pro-bono (free) legal advice, and there is no reason (as long as you are prepared for rejection) why you should not ask a lawyer to act for you in an honorary or reduced fee basis. (remember though that they are in business and have overheads and costs to meet)

The process can be tedious and there are some small traps, but it is quite straightforward really. We know of one consultant (note: NOT a legal professional) who may also assist for a modest fee.

What is the value, in monetary terms, of the nfp sector in NZ?

A study by John Hopkins University was released in 2008. <Available Here>

Information in these pages is provided in good faith but we can accept no responsibility for errors or omissions. In cases where a definitive opinion is required you should consult the appropriate professional. If you note erroneous or misleading information in this webiste please CONTACT US.

FREQUENTLY ASKED QUESTIONS (FAQ) ABOUT NFPs IN NEW ZEALAND

We receive a number of requests for information about non-profit organisations and charities in New Zealand and their organisation etc.