Update newsletter: December 2011
Holiday office closure
The Charities Commission’s office and free helpline (0508 CHARITIES) will close at 4pm Friday 23 December 2011, and re-open on Wednesday 4 January 2012.
The Charities Register will be available throughout the break, 24/7, though, if you would like to look up particular charities’ details.
You can also access our Advanced Search at any time of the night or day, to find out more about the charitable sector.
We wish you a safe and enjoyable holiday break, and look forward to working alongside you again in 2012.
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Our year and yours…
We had a “full house” at our Annual Meeting and forum for charities recently, and plenty of good questions and comments from the charity representatives who attended.
Some had travelled from as far afield as Wairoa, Gisborne, Auckland, Warkworth, Tokoroa and Christchurch to attend the Annual Meeting, which was fantastic.
One of the clear messages given to us, and which I heard repeated numerous times, was that charities appreciate the good relationship the Commission has built with the sector, and value the support and guidance we have provided. In particular, charities acknowledge our efforts to meet with and speak face to face with charities as often as we can, and to be responsive to feedback and suggestions that help us make improvements.
Speaking for myself, our Board and staff, we really value the consistently positive feedback and encouragement we have received during the year from the public, charities, and from others associated with the sector.
Although we are a small agency, I believe we have consistently “punched above our weight”, in delivering services to charities and the public, in working with other agencies to add value, in continuing to add to and improve the support we provide, and in the new initiatives we have introduced.
Amongst the services we have provided are the forums for charities, which have received a very positive response from the sector. Since we started the forums, in 2010, almost 3,500 charity representatives from across the country have taken part, and used the opportunities provided to learn more about topics such as non-financial reporting, the “state of the sector”, and wider governance and management issues – as well as being able to network with peers and colleagues.
We have supported the forums with a wide range of online “plain language” educational materials for charities and the public, about topics as diverse as considerations when deciding whether to register a marae as a charity, charitable purposes, political activities, and social enterprise. It is pleasing to note that charities and others continue to rate these materials very highly, and make good use of them.
Another of our key achievements during the year has been the release of data from the Charities Register, in formats that software developers can use to create new applications, and that members of the public can use to research the charitable sector. Our Open Data and Advanced Search are already proving invaluable to other government agencies, researchers, academics, news media, and members of the public who are seeking particular data about specific charities, charities who share particular characteristics, or charities overall.
We believe that our release of Open Data is a significant achievement, which shows the Commission to be a leader amongst government agencies, by making “real time” information available that can be used to measure, improve and enhance New Zealand’s economic and social outlook.
As became clear at the Annual Meeting, many charities are looking for assurance that the high quality, responsive service and support provided by the Commission will continue to be available when our core functions are transferred into the Department of Internal Affairs next year.
Although the transfer is contingent on Parliament passing the Crown Entities Reform Bill, we understand that it is likely (based on the information currently available to us) to become law, so that the Commission will cease to exist, and its registration, monitoring and education functions will be absorbed by the Department of Internal Affairs by 1 July 2012.
Peter Mersi, the acting chief executive for the Department, who spoke at the Annual Meeting as the representative of the Minister for the Community and Voluntary Sector, anticipates that charities will see no substantive change – it will be “business as usual”. Charities will still have to provide Annual Returns and meet other legislative requirements.
You may like to listen to his speech, which we have posted on our website (you’ll need a broadband connection).
The Commission is already working closely with the Department, and we will keep you informed as we learn more.
2011 was certainly a year of challenges for many charities, as they responded to tough economic conditions and increased demand for services, and to specific events, which included the Canterbury earthquakes, the Pike River mine explosion, and the Rena grounding on Astrolabe Reef. In each instance, the Commission was quick to respond, and to provide assistance and support to charities; and to provide advice to assist those seeking to establish new charities, and to donors and volunteers wanting to help.
We expect 2012 to hold many more challenges, both for the sector, and for the Commission. But, we will do our best to meet them, and to continue providing assistance to the charitable sector, and excellent value to government and the public.
From all of us here at the Commission, I wish you a very safe and enjoyable Christmas and New Year, and a wonderful time with friends and family.
We look forward to seeing you again in the new year, refreshed, and ready to meet 2012 with renewed energy!
Trevor Garrett
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Annual meeting presentations available online
If you weren’t able to attend our Annual Meeting, or would like to refresh your memory of the presentations (or share them with colleagues who were unable to attend), you can see (and hear) the speakers again by watching the video clips hosted on the Charities Commission’s website.
You can see the:
Note that you will need a broadband connection to watch these clips.
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Legislation update – where has everything got to?
Three legislative changes that affect (or potentially affect) the Charities Commission are at various stages in the parliamentary process:
- The Crown Entities Reform Bill disestablishing the Commission was introduced to the House on 29 September 2011, and had its first reading on 4 October. The Bill was referred to the Government Administration Committee. It is yet to go through a select committee stage, during which the public may make submissions. No timeframe has yet been announced for public submissions. It is expected, though, that the Bill will be reinstated by mid-April, and the transition of the Commission to the Department of Internal Affairs will be completed by July 2012.
- The Statutes Amendment Bill, which would resolve technical (non-controversial) issues arising from the implementation of the Charities Act, to improve its operation and workability, was not passed before the House rose on 20 October. A key change from this Bill is that it would give the Commission greater ability to amend its forms, to ensure they capture the right information, and are more usable for charities.
Both of these lapsed Bills will need to be reinstated on Parliament’s Order Paper, which is published on the New Zealand Parliament website.
- A further – wider – “First Principles” review of the Charities Act had been planned for 2015. With the Commission’s functions transferring to the Department in 2012 and the recent general election, the Department of Internal Affairs will seek direction from the incoming Government as to what a review might look like, and when it should be carried out.
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2010-2011 Annual Report published
The Commission has published its 2010-2011 Annual Report on its website.
It sets out the Commission’s achievements during the past year, and some interesting statistics about the charitable sector, and how people have been accessing and using the data produced by the Commission.
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Open data audiences ‘get the picture’
Since the launch of the charities’ Open Data project in July this year, the Commission has been promoting the information contained in the data.
The data represents an aggregation of all the information the Commission holds on the public Charities Register and has been released as ‘Open Data’.
Open Data allows for non- personal information held by Government to be released into the public realm, so that anyone can access and use it.
Charities’ data has been released in an extremely user friendly format which means it can be easily accessed and used by anyone, from members of the public to researchers, policy analysts and funders.
In August, the Commission appointed Emily Marden to promote the Charities Data to a wide of audience groups. Emily says she has been introducing a range of groups, including key public sector organisations, tertiary institutes, local government, funders and relevant private sector organisations, to Open Data.
“We’ve had a very positive response to charities’ data so far. Audiences are surprised by the size and scope of the sector, and are impressed by the data’s usability and how it can be used for their own work.”
Large funders, for example, will have a keen interest in the data, and a recent presentation was made to board members of Philanthropy NZ, many of whom are directors or trustees of organisation that make grants to the groups in the Charitable Sector.
Philanthropy NZ Director Robyn Scott says the release of this data is very welcome and will help promote transparency in the sector. Adding that “Funders want to be able to make sound decisions about fund allocation. Charities’ data is a useful and versatile tool for funders to analyse anything about charities by sector, or, for example, those within a specific region.”
Other agencies have also been loud in their praise for the Commission’s Open Data initiative. Phillip Coghini, Senior Policy Advisor with Te Puni Kokiri and avid statistician had this to say:
“This is an excellent example of democracy in action, which will result in greater transparency for the sector. The fact that the Commission have used a web-based tool to release this information is real value for taxpayers’ money. Well done!”
Other agencies that have participated in Open Data workshops so far include: NZ Police, Inland Revenue, the Ministry of Social Development, the Ministry for the Environment, Civil Defence, Kapiti & Coast District Health Board, and the Corrections department.
From February 2012 onwards, the promotion will be focused on regional Health Boards, Local Government and large funders.
The Commission is encouraging charities to check that the details they have entered in the Register are correct and up-to-date, and that they clearly show which sector/s the charity works in. It is also encouraging charities to be as specific as possible about the sector they work in and where possible, to avoid selecting the non-specific ‘other’ option.
Access to charities’ data is located on the Commission website home page under ‘Get the Picture’. Anyone wanting more information can contact the Commission’s Open Data Promotions Manager Emily.marden@charities.govt.nz
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Be careful about “sharing” your unique registration number with any other organisation
The Commission has recently encountered an interesting case that potentially raises issues for other charities.
A registered charity has allowed another (non-registered, non-affiliated) organisation to use its unique Charities registration number and Companies Office incorporation number on its website and promotional materials.
The (non-registered) organisation was apparently raising funds, some of which it planned to pass to the registered charity, and was relying on the registered charity’s status to give it “authenticity”, and enable donors to feel more confident.
The non-registered charity had verbal permission to use the registered charity’s registration number, but the registered charity was possibly not aware of how the non-registered charity planned to piggyback on its registered status.
The Commission encourages charities to use your unique registration number on your (own) website and promotional materials, so that donors and volunteers know they can look up your details on the Charities Register, and feel confident that you are a “bona fide” charity.
If a non-registered or deregistered charity specifically says or implies that it is currently registered with the Commission, this is an offence known as “holding out”, which can be prosecuted.
We suggest that you avoid “sharing” your unique registration number with any other organisation. Allowing another organisation to “piggyback” on your charitable status could damage your charity’s reputation, and the public’s trust and confidence.
The Commission has issued a warning to both organisations, and advised the registered charity not to authorise any other organisations to use its registration number.
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Application processing timeframes
Generally, the Commission aims to process straightforward applications for registration within 35 working days. If an application is incomplete though (for example, if it hasn’t been signed, or the rules aren’t attached), it will take additional time while we request and wait for the missing information.
From time to time, when we receive many applications within a short time, applications are queued, which may also add to the processing time.
All applications are processed in the order they are received, as they come to the front of the queue.
For current information about processing queues, please refer to the FAQs on our website.
We contact the applicant as soon as we have processed their application – either to ask for more information, or to let them know that their organisation has been registered.
Occasionally, an application can raise issues that we need to talk through with the applicant. This additional correspondence may add to the processing time.
Helpful tip:
It is helpful if you include a letter with your application, briefly explaining your charity’s activities (or give us a copy of your brochure, or a link to your website), so we are easily able to see if all your activities are, in fact, charitable. If we have this information included with your application, it can help us to more quickly process the application once it reaches the front of the queue. You might find it describe your activities by answering these two questions:
- What outcome was our charity set up to achieve?
- What are we doing to achieve our aims?
You can send this in an email to info@charities.govt.nz, or in a letter to:
Charities Commission Processing Centre
P O Box 30112
Lower Hutt 5040
Please remember to head up your email or letter with the full legal name of the organisation that has applied for registration with the Charities Commission (so we can match it to your application).
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$120,000 of travel and cash grants take flight – charities eligible to apply
Budget airline Jetstar has launched a programme to help not-for-profit community groups and organisations to fund projects that will enrich the lives of people in their local community.
Jetstar’s Flying Start Programme is now open for applications and will offer a $30,000 grant, made up of $15,000 worth of Jetstar travel and a cash grant of $15,000, to a local New Zealand community group or organisation each quarter.
Entry is open to New Zealand based not-for-profit community groups and organisations of any size. Charities, educational, health, arts or sporting organisations with a specific project or activity in mind are all encouraged to apply for a Jetstar Flying Start Programme grant.
Full application details are available at www.jetstar.com
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Law Commission review of trusts – your opinions sought
The Law Commission has released a fifth issues paper about reforming trust law in New Zealand, and is seeking views on a range of matters that focus primarily on ways to make it easier for beneficiaries to hold trustees accountable.
Court Jurisdiction, Trading Trusts and Other Issues addresses practical issues regarding mechanisms for enforcing trustees’ obligations. The Commission is concerned that (currently) the only way of resolving disputes between trustees and beneficiaries is for parties to go to the High Court. The paper asks whether it may be appropriate for the District Courts or Family Courts to exercise more powers under the Trustee Act 1956.
The Commission also looks at whether another approach ‒ such as a trust ombudsman or tribunal that takes some of the powers to resolve disputes in trust matters out of the hands of the courts ‒ is possible.
The paper also covers trading trusts, another area where reforms may be needed to enforce trustees’ obligations. Trading trusts are used to operate a business and often the trustee is a limited liability company. This means there is sometimes scope for the trust to be used to frustrate creditors.
The Commission says that creditors may not even be aware that the company they are dealing with is a trustee, a fact which may affect their prospects of recovering their debt. Also, beneficiaries may be left out of pocket when there is a breach of trust, as the corporate trustee may have insufficient funds to compensate the beneficiaries.
The next stage in the Commission’s trusts project will be a paper next year outlining its preferred approach across the range of possible reforms to trust law, based on submissions on the Issues Papers, consultation and further research.
Submissions can be sent to trusts@lawcom.govt.nz and close on 2 March 2012
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Non-profit sector executive salaries survey
Australian firm CBB Consulting is surveying executives in the non-profit sector about salary levels. All participants will receive a free copy of the report, which will be available in April 2012.
The survey closes on Friday 3 February 2012
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