The rules have not changed, but IRD appears to be tightening up on how they are applied. In august 2011 the Charities Commission issued this note:

Inland Revenue has published a "Revenue Alert" highlighting their concerns that some people are claiming tax credits for "donations" where there may not have been a true gift of money to a charity.

The arrangements that have come to their attention involve smaller, locally-based charities, and typically involve a payment being made in the expectation that the donor would receive something in return.

Any payment of over $5 to a charity can potentially qualify for a donations tax credit if it is a gift. To be a gift it must:

• Be made voluntarily;
• Provide a material benefit to the recipient without imposing a countervailing detriment;
• Be for no consideration; and
• Provide no material benefit or advantage to the giver in return.

You may wish to read Inland Revenue's "Revenue Alert", to be sure that your charity is complying with tax laws, and (if your charity is also a donee organisation) that your donors are able to claim tax credits when they make donations or gifts
.
Full information can be found here: http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1101.html.

For more information about donee organisations, see: http://www.ird.govt.nz/non-profit/np-donee/

The Law Commission has recently (June 2011) released a press release on the reform of the Incorporated Societies Act 1908. The Law Commission is keen to get as much feedback from the various kinds of organisations that are incorporated under the Act.

The Law Commission’s paper can be found here

" 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.

Minter Ellison Rudd Watts lawyers produced a comprehensive 'tax update' newsletter about the proposal which came 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 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.

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

Where can I find information about Charities and the Charities Commission? 

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?  

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

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

What are the benefits of forming an Incorporated Society?

What are the obligations after forming an Incorporated Society?

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?

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 qualify as 'charities' since some organisations (for example) 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.  Currently about 25,600 charities are registered with the Commission

(updated 7/11)

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.

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