Update Newsletter: April 2012
Update on legislation disestablishing the Commission
The Government Administration select committee considering the Crown Entities Reform Bill ‒ which would, (amongst other reforms), disestablish the Charities Commission as of 1 July 2012 and transfer its core functions to the Department of Internal Affairs ‒ has published its report to parliament.
You can read a copy of the complete report here (PDF).
The Crown Entities Reform Bill will be scheduled for a second reading in Parliament, at a date yet to be announced
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Open data puts New Zealand charities on global giving site
Thanks to the Commission’s Open Data project, charities in New Zealand may now benefit from an international giving website.
Kula Causes website has set up a “beta” (test) application that directly accesses data from the Charities Register, so people wishing to gift unredeemed loyalty points can search for a registered charity. They simply type in (for example) a key word, category or location, and tick the “country” box to look for relevant New Zealand charities.
Now it’s even easier for anyone around the world to find up to date information about registered New Zealand charities to support.
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Accounting standards framework approved
The External Reporting Board (XRB), which is responsible for setting accounting and auditing standards in New Zealand, has received approval from the Minister of Commerce for a new NZ Accounting Standards Framework and roll-out strategy.
The Framework proposes four different levels of report, depending on an organisation’s income and expenditure.
Most charities on the Charities Register will be required to complete the lowest level report, called a ‘Simple Format Report’.
The External Reporting Board will provide Simple Format Report templates and guidance, using ‘non-accounting’ language.
Charities won’t be compelled to use one of the templates, but their financial reports will have to meet the criteria of the new standard.
CHARITIES SHOULD NOTE:
It’s expected that the Simple Format Report standard (that most charities will need to use) will be issued in March 2013 but the law requiring charities to comply with it won’t come into effect until 1 April 2015.
This means that the first time a charity must prepare accounts according to the new standard will be for the financial year ending in 2016.
Charities can choose to use the new Simple Format Report standard as soon as it has been issued, if they choose (this could be a useful way of having a “trial run” with the new standards). After the date of the law change though, it will be compulsory to follow the new standards.
The Commission will work with the XRB to assist charities, and will also review its Annual Report form and guidance notes; to be sure they are consistent with the new standards.
For further details of the Framework, the proposed roll-out timetable and possible effective dates, see the XRB’s website
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What to do if a certified officer becomes disqualified
ALL registered charities must now tell the Charities Commission if a certified officer becomes disqualified – for example, if they become bankrupt while still serving as an officer of the charity.
Your charity won’t continue to qualify for registration if an officer becomes disqualified.
If an officer has become disqualified, you need to complete a copy of Form 8 – Notification of change for a disqualified officer, either on paper, or by filling out our web form.
Note that if an officer resigns (and simply becomes a “past” officer, rather than becoming disqualified), you should send us a completed copy of Form 3 – Notification of changes to a charitable entity, and a certification form (Form 2) for any new (replacement) officer.
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Outcome of the Commission’s first prosecution under the Charities Act
The Commission’s first prosecution under the Charities Act was taken against Andre John Peters last year, for failing to respond to notices requesting information to allow the Commission to establish if he was committing the offence of “holding out”.
“Holding out” is when someone says or implies that a charity is registered when it is not, or that they represent or are collecting for a registered charity when, in fact, they are not.
Mr Peters had been buying pens for 60c and on-selling them for $20 “donations”, claiming that 25% of the money went to a charity. However, he could not confirm this, as the evidence presented in court showed he only forwarded the Eftpos transactions to the charity and pocketed the cash he collected (estimated to be $25,000).
Mr Peters was found guilty, and fined $1,500, plus court costs. The fine was reduced from $3,000 after Mr Peters claimed bankruptcy.
This case sets a precedent for the Commission and any future prosecution cases.
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New appointment – Kate Antonievich – General manager, Registration
The Commission warmly welcomes Kate Antonievich to the role of General manager, Registration, for the Commission.
She has a Master’s in Public Management from Victoria University and holds a Master of Arts in political studies from Otago University.
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New website has payroll giving help for employers
A new website will help employers seeking to establish payroll giving schemes in their workplaces.
Payroll giving is a scheme which allows an employee to donate to their nominated charity through their employer’s payroll.
The new website has helpful information for large employers and small to medium sized employers, built on the experiences of a group of “early adopter” employers, who have already implemented payroll giving in their workplaces. It includes guides, FAQs, case studies, and more.
Payroll giving is currently offered by 1,300 employers, and more than 100,000 employees have access to a scheme. It offers a convenient way for employees to donate and since its introduction in early 2010; more than $4.8 million has now been donated through the scheme.
In December 2011 alone, more than 2,200 employees donated just over $275,000, receiving immediate tax credits totalling over $91,000.
You ‒ or employers considering offering payroll giving in their workplace ‒ might like to take a look at the website, at www.payrollgivinginfo.org.nz
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Registration applications ‒processing timeframes
The Commission is currently working through a backlog of registration applications, and its registration analysts are now looking at applications that were received in December 2011.
Applicants should expect it to take around 25 weeks in total to have an application processed, assuming all the correct information has been provided. This timeframe comprises approximately 18 weeks in a processing queue, and a further seven weeks (35 working days) to process the application and be sure it meets all the Charities Act’s criteria.
The processing queue is an “exception” to our normal timeframes, and we are working to reduce it as quickly as we possibly can. The queue arose because of an unusually high staff turnover, which meant the Commission had to recruit and train a team of new registration analysts. We have now employed new analysts, who are quickly being brought up to speed.
From time to time, the Commission is asked to provide “pre-application” advice, and review organisations’ trust deeds or other rules documents to see if they comply with the requirements of the Charities Act, before an application is actually submitted. Although we have not publicised this service, we have, when we have had capacity available, assisted applicants and reviewed their rules documents before receiving their applications.
However, given that we are focussing all our efforts on reducing the application queue, we are currently not able to provide any pre-application advice. We suggest that if you need help with the wording of a trust deed or other governance document, that you take a look at the plain language information sheets published by the Commission, or seek independent professional advice.
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Fraud workshops being planned for charities
More than 2,000 representatives of charities have attended the Commission’s forums for charities over the past two years, and have provided very positive feedback and suggestions about the workshops provided at the forums.
This year, the Commission is planning to do something a little different. We are working with an external organisation to develop a series of hands-on, practical workshops to help charities prevent, identify and deal with fraud, which can help you to provide ongoing assurance to your donors and supporters.
We’ll keep you in the loop as our planning progresses, and send you a personal invitation closer to the time.
Note that places will be limited!
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Business / charity partnerships
The Charities Commission is supporting Inspiring Communities, who are researching businesses around the country to learn more about their motivations for supporting local community organisations, and solutions to any barriers they might face.
The research is likely to help charities and businesses to work more closely together, to share resources, skills and ideas; and to help one another to make a difference to communities and to help grow customer loyalty and profitability.
When available, the Commission will help promote the research findings to charities and business. For more, see our website or contact Peter Dixon.
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Fundraising Institute conference in Auckland ‒ 11/12 May
The Fundraising Institute of New Zealand’s (FINZ) 2012 conference is being held in Auckland on 11 / 12 May (master classes on 10 May) at the Waipuna Hotel and Conference Centre.
It includes:
- plenary sessions with fundraising experts from overseas, including fundraising columnist Stephen Pidgeon from the UK
- 25 workshops that span a broad range of topics
- networking sessions, including a Fundraising Awards dinner
Other session topics include: ways to use social media, donor retention, getting Boards involved in donor relations, engaging government, how to find more funding, telemarketing, capital campaigns, fundraising for faith-based groups, and creating a word-of-mouth strategy.
Learn more and view the full programme at www.finz.org.nz/conference
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Your opinions count! – 5 minute Update survey – please tell us your views!
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We are very receptive to your thoughts and ideas. Following your earlier suggestions, we have changed the format of the newsletter, and now include more content from other government agencies that is relevant to the sector.
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Have your say at http://www.surveymonkey.com/s/VK5NQFR - the survey closes on Monday 14 May.
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The Commission has published a considerable amount of "plain language" information to help organisations understand the registration application criteria, and to complete Annual Returns and file Notices of Change. As well, some of the information sheets provide information about the Charities Act, and the thinking (and the law) that guides the Commission’s decision-making.
If you have used this information, we invite you to take a few minutes to tell us about your views and experiences. Please visit http://www.surveymonkey.com/s/VKJQQ8L before Monday 14 May to let us know what you think of our information sheets.
We will use your feedback to keep making improvements.
The Commission has a statutory role to assist and educate charities in good governance and management. Although we have chosen not to “reinvent the wheel” and develop a suite of new materials ourselves, we have published a selection of links to reelvant governance and management information designed for charities, linked from the Strengthening your charity page on our website.
We would like your views on these links’ usefulness and value - please take a few minutes to complete our survey.
Please visit http://www.surveymonkey.com/s/FJ5Y2XQ before Monday 14 May to tell us your views.
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