Frequently asked questions (FAQs)
As key elements of the registration process are finalised the answers to the following Frequently Asked Questions (FAQs) will change and become more detailed. The brochure, A Guide to the Charities Act, provides a useful background to the Act’s contents.
1. General
What does the Charities Act do?
The Charities Act 2005 established a Charities Commission as an Autonomous Crown Entity to provide education and support to the charitable sector and to register and monitor charities that wish to keep or obtain tax exempt status.
The Commission also:
- promotes public trust in charitable organisations
- encourages good practice in governance and use of resources in charitable organisations
- provides advice on matters relating to charities to the government
- promotes or undertakes research into matters relating to charities
See A Guide to the Charities Act or Fact Sheet 1: About the Commission for more information.
Why do we need a Charities Act?
Submissions on the Tax and Charities Discussion Document issued in 2001 indicated a need for increased regulation of the charitable sector through the creation of an independent body. The government believes the Charities Act 2005 will help build and maintain public trust and confidence in the charitable sector by making more information about charities publicly available.
The Charities Register will provide better information to government, from which it can make effective policy decisions relating to the charitable sector.
Much of the impetus for greater accountability and transparency has come from the sector itself. There has been growing recognition in recent years that charitable organisations need effective accountability systems in place so that people making donations can access information demonstrating how, and on what, funds are used.
When was the Charities Commission established?
On 1 July 2005.
How will the Commission help me with a donation to charity?
You can be sure that that a registered charity has proven to the Commission that it has a charitable purpose.
You can look at the register to find out about the services particular charities provide and who benefits from them etc.
See Fact Sheet 20: The Charities Register - what's in it for you? for more information.
What is a charitable purpose?
Please refer to the definition in our Glossary and see Fact Sheet 5: Charitable purpose for more information.
Are church-based organisations able to qualify as charitable entities under the Charities Act 2005?
Yes, if they have a charitable purpose.
Will information on the register be publicly available?
The Charities Act 2005 specifies that the following information will be publicly available on the register.
- the name, address and registration number of the charitable entity
- names of the current officers and of all officers since the organisation was first registered as a charitable entity
- a copy of the rules
- the application for registration as a charitable entity (including all required accompanying information and documents)
- each annual return
- each change notice
The Charities Commission may restrict public access to information and documents if it considers it in the public interest to do so.
How can I find out if a charity is registered?
Once we have a good number of charities registered, you can search for a particular charity on this website or phone the free info line on 0508 242 748. Registered charities will also have a unique registration number, which you are entitled to ask for.
Who is responsible for monitoring the Commission?
The Department of Internal Affairs.
The Minister responsible for the Commission is the Minister for the Community and Voluntary Sector.
Other key agencies with an interest in the sector are Inland Revenue, the Office of the Community and Voluntary Sector, Statistics NZ and the Ministry for Economic Development.
Who is on the Board of the Charities Commission?
Please refer to our Board members and biographical notes.
How is the Commission funded?
The Commission’s operational costs for 2006/07 will be fully funded by government. From 2007/08, they will be partly government funded.
What are the regulations?
Under the Charities Act, forms and fees must be set by regulation. Regulations are rules or bylaws made under an Act by the Governor-General in Council or by a Minister of the Crown.
All regulations are reviewed by Parliament’s Regulation Review Committee to ensure they meet their intended purpose. There is an inbuilt 28-day period before Regulations come into force to enable this to occur.
When did the regulations become law?
On 1 November 2006.
Was there consultation on the regulations?
Yes. The Department of Internal Affairs and the Charities Commission held ten workshops in mid 2005 to gain feedback on the draft forms.
The draft forms were then posted on the Charities Commission website for a public consultation period in October 2005.
Seventy written submissions were received and many concerns addressed in the registration forms. You can view the confirmed regulations here.
Are there any translated versions of your forms?
We don't provide translated versions of the forms, but we do provide translated guidance notes for Forms 1, 2 and 3 in Māori, Tongan, Samoan, Chinese Traditional, Korean and Arabic. Translated copies of 'A Guide to the Charities Act' in these languages are also available.
2. Relationship with other legislation
Does the Charities Act 2005 supersede the Charitable Trust Act 1957?
No. They are separate Acts for separate purposes.
If an organisation is already a Charitable Trust, it will still need to register with the Commission if it wishes to receive or maintain tax exempt status and become a registered charitable entity.
For more information, refer to Fact Sheet 12: How the Charities Act affects charitable trusts and incorporated societies.
Will I still need to comply with the requirements of the charitable trusts and incorporated societies registers?
Yes, if your organisation is incorporated under these Acts. The Charities Commission will not take over the running of these registers. This is because not all charitable trusts or incorporated societies will choose to become registered charitable entities.
For more information, refer to Fact Sheet 12: How the Charities Act affects charitable trusts and incorporated societies.
Can an unincorporated collective be registered as a “Charitable Entity” under the Charities Act 2005?
Yes. An organisation does not have to be a legal entity to register with the Commission.
The Commission expects most organisations that meet the charitable purposes test will be either:
1, a trust, or
2, a society or institution
but not necessarily an incorporated trust, society or institution.
Will the Crown be consistent in its approach as to what is a “charitable purpose”? i.e. would the Charities Commission reach the same result in terms of assessment as is achieved in the process currently undertaken by the IRD, and by the Registrar of Charitable Trusts under the Charitable Trusts Act 1957?
While it is not possible to know in advance whether the Charities Commission will reach the same result as other agencies in all cases, the Commission will use the well-established common law test for charitable purposes. The test requires a charitable organisation to have a purpose in terms set in the common law that either:
- advances education
- advances religion
- relieves poverty
- is otherwise beneficial to the community.
The Charities Commission must apply the charitable purposes test in the context of the Charities Act. While the approach will be very similar to other Crown rulings in the context of other legislation, there may be cases where the result will be different.
A trust does not need to have exclusively charitable objectives. It must have at least one charitable objective, but it may have other objectives as well.
The Commission’s assessment of charitable purpose will be considered on a case-by-case basis.
For more information, refer to Fact Sheet 5: Charitable purpose.
How does the Financial Reporting Act affect charities?
There is no government policy in relation to applying the Financial Reporting Act 1993 to registered charities at present.
For further information, please refer to our guidance on charities and financial reporting.
Will the Commission provide information on request to non-Crown agencies?
Like members of the public, non-Crown agencies may search the publicly available register and make official information requests.
As a Crown agency, the Charities Commission is subject to the Official Information Act.
Can the Charities Commission access and retrieve constitutional documents from other registers?
The Charities Commission will not be accessing and retrieving constitutional documents from other registers. The Commission requires the most up to date versions of these documents and other agencies may have a different filing or up-date schedule.
However, the Commission does not require original constitutional documents – copies are acceptable.
3. Registration
What are the benefits to my organisation of registration?
As a registered charitable entity, your organisation can be reasonably sure it will be eligible for tax exempt status. It will enjoy improved public trust and confidence in its activities, and receive, if you wish, support and guidance from the Commission on good governance and management.
You can display your unique registration number on promotional and identification material and quote it over the telephone to prospective donors or funders as proof of your legitimacy.
Potential donors and funders can research the register and make informed decisions about who to support.
For more information, read The Charities Register - benefits for charities.
When did the Register open?
On 1 February 2007. Organisations wishing to ensure tax exempt status will have until 1 July 2008 to register with the Commission before tax exempt status is affected.
How will I know when to register and what to do?
Refer to Timing it right for some guidelines on when your organisation may find it most convenient to apply for registration.
For further information, check our Registration Guidelines.
To make sure you receive up to date information please phone 0508 242 748 or email info@charities.govt.nz and ask to be placed on the Charities Commission’s contact database.
How do I register?
You can register online, on this website, or by completing and posting hard copy forms to the Charities Commission. Visit our Registration Guidelines page, where you'll find a host of useful information.
Where can I get help to register?
The Charities Commission is here to help. We have prepared a range of registration guidelines to help people with their applications for registration. We are also running free, nationwide registration workshops in February and March 2007. Go to our Events page for the workshop schedule.
Is registration compulsory?
No, but charitable organisations wanting to retain or gain tax exempt status on the grounds of charitable purpose will need to register.
Also, charities wishing to use the term ‘registered charitable entity’, ‘charitable entity’ or any other term implying registration must register.
The Charities Act 2005 includes penalty provisions for organisations that say they are registered when they are not.
What if I don’t register with the Commission?
You can still operate as a charity but you won’t be entitled to income tax and gift duty exemptions on the grounds of charitable purpose after 1 July 2008. You won’t be able to say or imply that you are a registered charitable entity; and you will not have the support of the Commission in assuring the public that your activities are genuine.
What does it cost to register?
Application for registration is free of charge.
Are there ongoing costs?
Not for charities with a gross annual income below $10,000. However, if your charity has a gross annual income of $10,000 or more, an annual return filing fee will apply. The fee is expected to be $75 for paper based annual returns and $50 for online returns.
Does an organisation have to be a legal entity to register with the Commission?
No.
What information do I need to give the Commission?
The Commission has developed a checklist to show the information an organisation will need in order to register.
Where do I get the registration forms?
Go to our Forms page to download the forms you will need to apply for registration. You can order paper versions by calling us on freephone 0508 242 748 or by sending an email to info@charities.govt.nz.
Other registration forms, as they appear in the regulations, are available for preview here.
What if I don’t have all the information asked for on the registration form?
The Charities Commission encourages you to gather all of the information required before beginning your application. A checklist and glossary are available to help you.
If you are applying online you can begin your application, then save your work without losing the information you have already entered and log in later to complete it.
What if I forget to file an Annual Return?
We will send you a reminder. Charities that do not file an annual return within 6 months of their balance date may be charged an administrative penalty of $200. There will be a phase in period for these administrative penalties.
For more information on Annual Returns, read Annual Returns under the Charities Act.
Are there any other penalties?
Yes. Charities that do not notify the Commission of changes, within 3 months of those changes occurring will be required to pay an administrative penalty of $100.
Read What to do when something about your charity changes for more.
What does it mean to have a name that “complies with the Charities Act 2005"?
The name of a charitable organisation must be
- incorporated under the Incorporated Societies Act 1908, or
- the Charitable Trusts Act 1957 of the Companies Act 1993, or
- be established under that name by an Act, or
- be a name the Commission believes is not offensive or liable to mislead the public
For further information, read Fact Sheet 7: The name of your organisation.
How will the structure of my organisation fit with the registration requirements?
The Charities Commission recognises the diversity of structures in the charitable sector.
The Charities Act enables organisations with branches to register either as individual charitable entities or in a group, known as a "single entity". For more information about group registration, read Group Registration - an overview.
The information provided by the organisation in registration documents and annual returns must cover the activity of all services carried out.
Are there any guidelines or officially sanctioned guidance available as to what constitutes ‘public benefit’ for a purpose to be accepted as charitable?
The Charities Commission will apply section 5 of the Charities Act 2005 to assess charitable and non-charitable activities. Every applicant is judged on its rules and activities on a case by case basis.
To be charitable, an organisation must be of a public nature, that is, for the benefit of the community or a section of the community.
A gift for the benefit of particular individuals is not charitable.
In other words, an organisation is charitable only when it is directed to the public benefit.
The element of public benefit is not necessarily a prerequisite in the case of trusts for the relief of poverty or where it can be shown that the beneficiaries are in need. For example, a charity that provides housing for people in need would not be excluded for the reason that an individual benefits.
For more information on public benefit, read Fact Sheet 5: Charitable purpose.
What constitutes ‘advocacy’ in the context of the Charities Act? How much of an institutional focus and priority on advocacy must there be for the organisation to lose its status as a charity?
While the Commission cannot determine in advance if any organisation will meet the charitable purpose criteria, advocacy (for example, assistance to a particular class of people to make claims for a particular right or entitlement) may be considered as charitable purpose. This does not include advocacy with any political purpose or with the purpose of changing the law or enforcing existing law.
For further information about advocacy, visit our News page.
Will the Charities Commission provide advice as to what changes an organisation should make to its governance documents for it to be registered, as is current IRD practice?
While not all processes around the registration process have been completely finalised (including what our position is in terms of giving advice), the Charities Act requires the Commission to give the applicant notice of any matter that might result in registration being declined.
Therefore, if someone applies for registration and there are difficulties with the constitution, the Commission will contact the organisation and discuss the concerns.
We have developed guidance on rules to assist charitable organisations with their applications for registration. For more, read Your rules and the Charities Act.
When will I be notified about the outcome of our application?
Once we receive everything we require (e.g. a completed application form, all Officer Certification forms and a copy of your rules), it will currently take about eight to ten weeks to process your application. This is a guide only and can vary according to the complexity of an application, whether or not we need to contact you for more information, and the volume of applications we are managing at the time.
If your application is successful, a registration certificate is sent to your charity’s address for service and relevant details are published on the Charities Register.
If we need more information to consider your application, we will write to you. If we find something that might result in us declining your application, we will send a formal notice, explaining our reasons and giving you the opportunity to have your say on the matter.
Will I be notified after the Commission have received any additional information or corrected forms that were requested?
No, if we have asked you for more information or clarification, we don’t generally also acknowledge that when we’ve received it.
Can we fast-track our application?
No. We cannot “fast-track” any applications because doing so would compromise the integrity of our process and outcomes, which are critical to promoting public confidence in the charitable sector. Applications are allocated to registration analysts for consideration in order of the date they become complete. As a matter of fairness and impartiality, each application must go through the same standard process and be subject to the same consideration.
I have applied online, but made a mistake in the application. Can you correct this, or do I need to send you a Notification of Change form?
We can correct any minor typos or incorrect details as we process your application, but you will need to advise us in writing. Simply drop an email to info@charities.govt.nz.
We applied for registration a while ago, but haven’t heard anything from the Commission. Did you receive our application?
We acknowledge the receipt of every application by sending either an email to the primary contact you have named in your application (if you applied online) or by sending a letter to your address for service (if you have applied by post).
However, if we have asked you for more information or clarification, we don’t generally also acknowledge that we’ve received it.
If your address for service is that of your lawyer or accountant, please note that our correspondence will go directly to them, rather than to your organisation.
Application acknowledgements include a summary of your application details and a unique username and password, which you can use to login to the Charities Register and check the status of your application.
What will be the format of the registration number?
The registration number will be two letters and six numbers - e.g. CC100001.
In the case of a group of organisations registered as a single entity the sub entities may have the same number with the addition of a suffix. Details to be confirmed.
Unfortunately, we are not able to satisfy requests for registration numbers of your choice.
4. Officers
What is an officer?
If your organisation is a trust, your officers are your trustees.
If it is not a trust, your officers are all the members of your board, or governing body. They may include your secretary, treasurer and committee members.
If you do not have trustees, a board or governing body, your officers are all the people in a position to have significant influence over your management or administration.
Your rules will clarify who the officers of your particular organisation are. An officer may be a person or a body corporate (for example, a company).
Refer to our guidelines on officer certification for more.
What are the responsibilities of an officer under the Charities Act?
An officer is responsible for ensuring their charity complies with the Charities Act, if successfully registered. Their other responsibilities will vary, depending on the structure of their charity (e.g. whether they are a trustee, a director of a company, or an officer of an incorporated society) and the requirements of the legislation they are established under.
Do all of our officers have to confirm that they are not disqualified from being officers before our organisation can be registered?
Yes. In some cases, the Charities Commission may decide to waive the disqualifying factor. You can write to us to request a waiver and explain the reasons for your request. We will confirm our decision in writing.
If an officer does not qualify and we do not grant a waiver, your organisation will not qualify for registration.
Refer to our guidelines on officer certification for more.
Is an officer permitted to be an employee of a charitable organisation?
Yes, an officer may be an employee if the rules of the organisation allow.
We have a board and employ a chief executive officer and a chief financial officer (who are not part of the board) as well as other staff. Should we include the CEO and CFO as officers in our registration?
No. In your case, only members of your board need to be certified as officers.
What if we change our officers, do we have to tell the Commission?
Yes. A Notification of Change form must be completed either online or in hard copy. Please refer to What to do when something about your charity changes for more.
5. Tax issues
Questions about tax? We suggest you read Fact Sheet 18: How the Charities Act affects your tax status first.
Does registration with the Commission guarantee tax exemption?
No, but registered charitable organisations can be reasonably sure they will be exempt from income tax (on any non-business income) and gift duty. Inland Revenue will publish guidelines for charities to help them understand their obligations in terms of the Income Tax Act and the Estate and Gift Duties Act.
Are charities required to submit a copy of their original IRD letter of approval to the Commission?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 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.
Who decides whether my organisation gets tax exemption?
While registration with the Commission is a prerequisite for tax exemption, Inland Revenue remains responsible for administering the Income Tax Acts. Inland Revenue will publish guidelines for charities to help them understand their tax obligations and the interaction between registration as a charity and the various tax exemptions available.
If you do not register, you can still operate as a charity but you won’t be entitled to tax exemptions on the grounds of charitable purpose.
Do I still need to apply to Inland Revenue for tax exemption?
No. Registering with the Commission is all an organisation needs to do to begin the process for tax exemption status based on charitable purpose.
What about my organisation’s current tax exemption for charitable purposes – do we lose this?
No, but in order to retain your tax exemption post 1 July 2008, you must register with the Charities Commission by 1 July 2008.
What does ‘donee status’ mean?
Individuals who make donations to an organisation that has approved donee status are entitled to claim tax relief on that donation, either by rebate or deduction.
What about organisations with tax exemption on grounds other than charitable purposes, for example, sports organisations?
The Charities Act 2005 will not affect sports organisations and other bodies that have tax exemption on grounds other than charitable purposes.
If your organisation does not have a charitable purpose, there is no need to consider registration with the Charities Commission to retain your tax exempt status - this is still the domain of Inland Revenue.
For further information, refer to Fact Sheet 14: Sports and recreation organisations.
6. Rules
It is difficult for us to change our rules so they clearly state our charitable purpose because they are set at an international level. What can we do?
If your group wants to commit to being “exclusively charitable”, you could pass a formal resolution at club level, which commits the group to limit their activities to those that are charitable in New Zealand.
Can you give us an example, like those in your Rules Fact Sheet?
“The <Name> of <Place> has resolved that the charitable focus of our activities will be to advance education and/or advance religion and/or relieve poverty and/or provide other benefits to the community. At all times our activities will be limited to those activities that are charitable in New Zealand.”
We are a service group that has rules written at international level with an emphasis on friendship and professional relationships. We actually spend most of our time and money carrying out charitable activities. Will it be enough for us to provide the Commission with information about our charitable activities to meet registration requirements?
No. Since the rules of the organisation allow you to spend all your time in social activities, this would not be enough.
7. Annual Returns
If we apply earlier than planned, won’t we also need to file an Annual Return earlier?
We are aware that some organisations are choosing not to apply for registration now, as they would prefer to delay filing their first Annual Return. The Charities Act requires all charities registered with the Commission to file an Annual Return within six months after their balance date.
The Commission can grant an exemption from the requirement to send an Annual Return for any particular year. While each case must be considered individually, there are generally good grounds for exempting charities from filing Annual Returns that would contain information that pre-dates registration. If we consider it appropriate, we will contact you and offer an exemption.