Updated June 2026

This page explains when sport and recreation activities may be charitable in New Zealand, and what we consider when assessing applications.

When sport and recreation can be charitable

Promoting sport or recreation on its own is not a charitable purpose.

However, an organisation may be charitable if it uses sport or recreation to advance a recognised charitable purpose, such as advancing education, promoting health, or supporting community wellbeing.

To register under the Charities Act 2005, an organisation must have exclusively charitable purposes, carry out activities that advance those purposes, provide a public benefit, and ensure any private benefit is limited and secondary to that public benefit.

We assess each application on a case-by-case basis.

Ways sport and recreation may be charitable

Sport and recreation may be charitable when they are used to:

• advance education
• promote health and wellbeing
• support social inclusion
• provide recreational facilities for public benefit 

The activities must always benefit the public, or a sufficient section of the public.

When sport advances education

Sport can be charitable where it has a clear educational purpose.

This may include activities connected with schools, universities, or programmes that teach skills with wider educational or life benefits.

Example: sport in schools

An organisation provides structured sports programmes to primary schools to support students' development. In this case, sport forms part of the educational purpose and may be charitable.

Example: teaching life skills through sport

An organisation teaches children how to swim, with a focus on safety and life skills. In this case, the activity may be charitable because it has a clear educational purpose.

When sport benefits the community

Sport may also be charitable where it provides a recognised benefit to the community.

This may include promoting:

• public health
• social inclusion
• community wellbeing.

Example: promoting health

An organisation encourages community participation in regular physical activity to improve health outcomes. In this case, the purpose may be charitable because it promotes public health.

Example: promoting social inclusion

A sports organisation provides programmes for disabled people or actively supports participation by older people or new migrants. In this case, the organisation may be charitable because it promotes inclusion and community wellbeing.

Providing recreational facilities for public benefit

Providing facilities for sport or recreation can be charitable in some circumstances.

Generally, the facilities must be provided in the interests of social welfare and for the benefit of the public.

Example: public sports facility

An organisation provides a multi-sport field that is available for community use. In this case, the purpose may be charitable if the facility supports community wellbeing and provides public benefit.

Show public benefit and limit private benefit

An organisation must show that its activities benefit the public, or a sufficient section of the public.

This includes:

• explaining who benefits
• showing how the benefit reaches the public
• providing evidence where the benefit is not obvious. 

This is particularly important where activities may also benefit individual participants, members, teams, coaches, or sporting organisations.

Any private benefit must be incidental to achieving the charitable purpose. It may arise from carrying out the organisation's activities, but it cannot be the main purpose of the organisation.

An organisation may make a profit or pay for goods and services, provided these activities support its charitable purposes. Private financial interests must not be the primary focus of its activities.

When public benefit may be limited

Public benefit may be limited where:

• membership is restricted
• fees create significant barriers to participation
• activities mainly benefit a small or selective group
• the focus is on social or club activities rather than public participation
• activities primarily support elite or professional sport

Example: broad community access

A club offers affordable programmes and opportunities for a wide range of participants. This supports public benefit.

Example: limited access club

A club charges high membership fees and restricts participation to a small group. This may limit public benefit and affect eligibility for registration.

Elite sport and public benefit

A common reason organisations do not qualify is where their purpose is to benefit a limited group of elite athletes rather than the public.

Elite sport generally involves participants selected on the basis of ability or performance, with a focus on high-level competition rather than broad community participation.

Activities limited to elite participants are unlikely to provide sufficient public benefit. Activities that are available to a wider section of the community may still be charitable, even if elite athletes also participate.

An organisation may include some activities involving elite sport, provided these activities are minor and support its overall charitable purposes.

How we assess applications

When we assess an application, we look at whether the organisation's purposes and activities meet the registration requirements.

We consider what the organisation says it will do and what it does in practice. We look at:

• how clearly the purposes are defined
• whether sport or recreation advances a recognised charitable purpose
• who benefits from the activities
• whether the benefit is public or private
• whether any private benefit is limited, justified, and connected to the charitable purpose
• how the organisation carries out its purposes in practice. 

These factors help us decide whether the organisation's purposes and activities meet the requirements for registration.