Backdating of Registration Applications
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The Charities Act enables the Charities Commission to backdate registration to the date on which a properly–completed application was received.
Backdating of properly completed applications
The Charities Commission has the power under section 20 of the Charities Act to backdate the registration of charitable organisations.
This means that (for the purposes of the Charities Act, the Income Tax Act 2007, and the Estate and Gift Duties Act 1968) - if the Commission makes a decision to backdate the registration of an organisation, it will be treated as though it was a charitable entity as at a date before the Commission’s actual decision to register.
This is referred to as “the effective date of registration”.
There are two criteria the Commission will take into account when deciding whether it can backdate an application:
- Is the application properly completed?
- Is the Commission satisfied that the organisation was qualified for registration at all times during the period between the date it applied for registration, and the date on which the decision to register it was made?
What is a “properly-completed” application?
The Commission will treat an application as “properly completed” for the purpose of considering it for backdating, if it has received:
- a set of rules
- at least one Officer Certification form
- a certified application form
For group applications, the Commission must have received:
- a submission for consideration to be treated as a group, and
for each member of the group:
- a completed Group Member Information (GMI) form
- a set of rules
- at least one Officer Certification form
Qualification for registration between applying and actual date of registration
When making its decision about backdating an application, the Commission will determine whether it is satisfied that the organisation was qualified for registration at all times during the period between the date it applied for registration, and the date on which it the decision to register is made.
If an applicant changes its rules during this time, the Commission must be satisfied that any changes relate only to changing the applicant’s written record, rather than changing its behaviour.
The Commission will ask the applicant to provide written confirmation that they have remained “charitable” in the intervening time. For example, this might be confirmation that they did not have a purpose of making private pecuniary profit.
Case by case decision
The Commission will make a case-by-case decision whether it can backdate any properly completed application for registration to the date when we received it.
Maintaining tax exemptions
Organisations whose properly completed applications were received before 1 July, but who were actually registered after that date and backdated by the Commission, will maintain any existing charitable-purpose tax exemptions for the period in between their application being received, and the date on which the actual decision to register was made.
Organisations that send a properly completed application to the Commission after 1 July may face uncertainties about their tax liability for the period between 1 July and their effective registration date. They should refer to Inland Revenue for more information about their tax status.
For enquiries relating to tax status or charitable purpose tax exemptions, please visit the Inland Revenue website or call IRD on 0800 377 774.
Further information
For more information about the Charities Commission or registration under the Charities Act, please browse this website.
You can also call the Charities Commission on our free information line 0508 242 748.
To get updates by email, please send your name, organisation and contact details to info@charities.govt.nz.