Political activities and registration under the Charities Act
This information sheet was first published in August 2008
Download the information sheet (PDF, 149KB - link opens in a new window)
Organisations that have exclusively charitable purposes and use political activities to achieve their purposes can qualify for registration. This is because they are (and have always been) regarded as charitable in the eyes of the law.
Organisations with main purposes that are political do not qualify for registration because they are (and have always been) regarded as non-charitable in the eyes of the law.
Introduction
This information sheet provides guidance for charities carrying out political activities and has been developed for the New Zealand context. It draws on guidance developed in other countries with laws that are similar to those here and in particular, guidance prepared by the UK Charity Commission.
Part A sets out general comments about charities carrying out political activities.
Part B lists some practical examples of political activities.
Part A: Political activities by charities
Political activity and charitable purpose - Our information sheet Advocacy and the Charities Act clarifies the Charities Commission’s position that, under the law, organisations that have a main purpose to advocate for:
- political change
- a political party
- a law change or
- enforcement of a particular law
are not charitable and so they do not qualify for registration under the Charities Act.
To qualify for registration under the Charities Act, an organisation must have a name and officers that qualify and must have exclusively charitable purposes.
Charitable purposes means purposes to:
- relieve poverty
- advance religion
- advance education or
- otherwise benefit the community.
“Public benefit” is an essential part of all charitable purposes
The decision about whether purposes are charitable is based on what the courts have decided are charitable purposes.
The courts have taken the view that organisations with a main political purpose are not charitable. This is because the courts felt they should not decide whether proposed law changes, or the views of a political party, are of public benefit. The courts felt they should leave this decision to voters and to parliament.
However, an organisation may qualify for registration if it has ancillary (secondary) purposes that are non-charitable, such as political advocacy or lobbying, as long as they are only secondary to, and not independent of, its charitable purposes.
Organisations that do have exclusively charitable purposes and that provide a public benefit may carry out activities within the scope of their rules to achieve their purposes.
These include activities that could be described as advocacy, political campaigning and other political activities.
Advocacy, political campaigning and other political activities
Examples of “political activities” that charities may carry out to achieve their purposes include:
- Political campaigning such as public awareness raising and education on a particular issue, influencing and changing public attitudes, or activities that are intended to influence government policy or legislation and which may involve contact with political parties.
- Other political activity including activities aimed at securing or opposing any change in the law or in the policy or decisions of central or local government, here or overseas.
These activities are acceptable where they are within the scope of rules of the charity and are aimed at achieving its purposes.
Difficulty arises where:
- a charity’s political activity is not aimed at achieving its purposes — for example where it is focussed on supporting an individual political party or candidate, rather than on how that party or candidate can promote the charity’s purposes
- the focus on political activity is so great that it becomes a main purpose.
In these cases, the charity could be considered to have main purposes that are political and so it would not qualify to be registered under the Charities Act. It may also be considered to be acting outside its rules.
This is a question of degree that the Commission looks at on a case-by-case basis. If the Commission has concerns about a charity acting in a way that suggests it has main purposes that are political (and so is not charitable) it raises its concerns with the charity before taking further action.
As noted above, organisations with main purposes that are political are not charitable. However, organisations established for exclusively charitable purposes may carry out political activities, provided they are a legitimate means of furthering their purposes.
It has always been acceptable to carry out personal and representational advocacy such as assisting a person to obtain a grant, access services, or understand their rights.
Issues to take into account
As with any area of charitable activity, when considering whether to take part in political campaigning or other political activities a charity should be satisfied on reasonable grounds that:
- the activities are permitted by its rules
- the activities comply with the general law and with any other regulatory requirements
- there are benefits for the charity and its beneficiaries
- the benefits justify any possible risks.
If a charity takes part in political campaigning and other political activity, its officers must be aware of and act in accordance with all general legal and regulatory requirements — for example the Electoral Finance Act 2007.
Because information can be made available in a range of ways such as, internet campaigning and text messaging, charities may need to seek specialist advice if they are in any doubt about the legality, or appropriateness of their proposed campaign or activity.
Charities will also need to make a judgment about the type and amount of political activity that is appropriate to support their charitable purposes.
Factors to take into account will include the:
- purposes of the charity
- nature of the political activity
- proportion of the organisation’s resources used and
- the period involved.
Part B: Some practical examples
Listed below are some practical examples of ways that charities may work to achieve their purposes through political campaigning or other political activity.
This is not a complete list and does not mean that charities cannot engage in other types of political activity.
As stated in Part A, these activities are acceptable as long as they:
- are permitted by the charity’s rules and
- are aimed at achieving its charitable purposes and
- do not become so dominant that the organisation is considered to have a main purpose that is political.
In all cases, this is a question of judgment for the charity.
Influencing government or local authorities
A charity can try to influence government, local authorities, or public opinion on issues either relating to the achievement of its own stated purposes, or to the well-being of the charitable sector.
This could include:
- the sectors providing information to its supporters or the public on how individual Members of Parliament, local councillors or parties have voted on an issue, to try to persuade those members, councillors, or parties to change their position
- providing its supporters or the public with material to send to Members of Parliament, councillors, central government, or the local authority
- organising and presenting a petition to national or local government. The petition, or supporting material provided by the charity should clearly show what the purpose of the petition is, so that people know what they are being asked support.
Responding to proposed legislation
To support its purposes, a charity may provide and publish comments on possible or proposed changes to the law or government policy, that are contained in a discussion paper, draft Parliamentary Bill or elsewhere.
A charity may also supply Members of Parliament with relevant information about the implications of a Parliamentary Bill, for use in debate.
Supporting, opposing and promoting new legislation and public policy, and changes to existing legislation and public policy
If it is aimed at furthering its purposes a charity may support or oppose the passage of a Parliamentary Bill and promote the need for a particular piece of legislation.
Examples could be:
- A local charity for homeless people appealing against the decision of a council to no longer provide accommodation.
- A national charity for homeless people promoting the need for a change in public policy or legislation relating to the way in which decisions are made about allocating accommodation.
Commenting on public issues
A charity can make public comment on social, economic and political issues if these relate to its purpose or the way in which it is able to carry out its work.
Supporting political parties
As explained above, supporting a political party, or its policy, is not, in itself, a charitable purpose. However, a charity may have ancillary, non-charitable purposes and it may also further its purposes by using political activities. Therefore, it may further a charity's purposes to support a policy which is also advocated by a political party.
Publishing the views of politicians and other contact with politicians
A charity may publish the views of local councillors, Members of Parliament and opposition candidates, where these views relate to its purposes.
Issues to consider are the impact of the range and scope of the views, and how they are expressed, for the charity's work overall; as well as whether the views could present any risks to the charity's reputation.
A charity can invite a politician to speak on behalf of its cause, for example — at the launch of a national campaign.
It is important to consider the need to ensure, where possible, that this does not suggest some form of support for the politician that does not relate to the charity’s purposes.
Use of charity facilities for campaigning and political activities
To raise funds, charities may hire out their facilities to non-charitable organisations when they are not being used for their own purposes. This could include local political and campaigning groups; candidates for election, and local Members of Parliament or councillors who wish to consult with their constituents.
A charity may also be justified in declining to hire out its facilities because the aims or activities of the user would conflict with its purposes, or because of the risk of public disorder or of alienating the charity's beneficiaries or supporters.
Consultation
When trying to influence legislation or public policy, a charity may, if it wishes, consult with its key stakeholders including members of the public.
For example — it might arrange consultative meetings in order to test the views of its beneficiaries or the general public, before supporting, opposing or promoting changes to legislation and public policy.
In all cases activities that could be seen to be political must be carried out to support or further the charities purposes.
Further information
We hope this information has been helpful.
For more information about the Charities Register or registration under the Charities Act, please call our free information line – 0508 242 748.
or send emails to info@charities.govt.nz