Snippets
Here for Good? Charities Sector Report 2022
A number of NFP Resource readers responded to a recent request to assist with a survey being run by Grant Thornton. The report has just been published.
In the introduction to the Report, the authors state "If we have gained anything from working with NFP clients over the past 25 years, it is a deep conviction that the work you do is critical to NZ Inc. Your vital statistics are impressive, you employ over 145,000 New Zealanders, represent $21.1bn in revenue and provide support to hundreds of thousands of people every year. If the true measure of society lies in how it treats its most vulnerable people, your continued success is vital to ensuring our country remains a fair and civil one, and for holding the government of the day to account when they fail to step up.
The ... report showcases the great work many NFPs have done over the last few years in creating more robust and financially secure organisations. It’s clear many of you are stepping up to the challenges you face. But where there is room for acknowledgement and celebration, there must also be room for honesty. This is where this year’s theme ‘Here for good?’ goes to the heart of the matter to ask about your long-term survival.
Our concerns lie not in whether you have enough Board members, or whether you regularly review your strategy - both of which are important – rather, they lie in the dangers hidden in plain sight that could destroy all your work with nothing more than a simple keystroke. We refer of course to privacy, cyber risk and risk management in general. There is little an engaged Board, innovative partnerships or ample cash reserves can do to repair the loss of trust and reputational damage caused by such events.
<The Report is available here>
-o0o-
Changes to Charities Act
On 2 June, Hon Priyanca Radhakrishnan, Minister for the Community and Voluntary Sector announced changes to modernise the Charities Act, following a comprehensive government review.
The review of the Charities Act commissioned by the Government was led by the Department of Internal Affairs’ Policy Group, and considered feedback and recommendations from across the community and voluntary sector.
The changes will include reduced reporting requirements for very small charities, increased transparency on accumulated funds and a more accessible tribunal for charities that want to appeal decisions. There are about 28,000 registered charities that contribute greatly to New Zealand society, and these changes will ensure that our legislative settings are fit for them to continue supporting our communities into the future
A bill is expected to be introduced this year to make these amendments to the Charities Act. The public will have an opportunity to provide feedback through the Select Committee process. The passing of the Charities Act Amendment Bill will mark the completion of a significant phase of work.
More information about the proposed changes can be found on the Department's website. If you have questions about the work, you can email the policy team at charitiesact@dia.govt.nz
(Source: DIA Charities)
Sue Barker recently expressed an opinion about the reforms: "[I] personally believe they are an insult to the sector – they will do nothing to benefit New Zealand’s communities and are more likely to act perversely to preclude the sector’s real issues from being addressed ... I was interviewed on Morning Report about it <Link> Please also see the article at the following link in case it might be of interest."
(Thanks to Sue Barker)
Proposed Changes to the Act:
- Charity requirements - maintaining a charitable purpose, having a rules document, and having qualified officers - will be made explicit.
- Larger charities (with operating expenses over $140,000) will be required to report reasons for accumulated funds. This requirement will be included on an updated annual returns form designed in consultation with the sector and iwi.
- Very small charities can get exemptions from financial reporting, through Charities Services. The threshold for this is yet to be developed.
- Charities Registration Board membership will increase from three to five.
- The Board will now have power to disqualify an officer for 'serious wrongdoing' or a significant or persistent breach of obligations, without having to deregister the charity. Part of the definition of 'serious wrongdoing' will be clarified, replacing a reference to an offence with 'an offence that is punishable by imprisonment for a term of two years or more'.
- The Board will be required to publish decisions on declining an application for registration and deregistering a charity. The Board and Charities Services will also publish information on decision-making policies and procedures, and significant decisions of the Board and Charities Services will have clear process for charities to raise objections.
- Charities Services' significant decisions, and existing decisions of the Board, will be able to be appealed. Appeals under the Act will now go to the Taxation Review Authority, before going to the High Court.
- Charities Services will be required to consult with the sector when developing significant guidance material.
- Timeframes for submitting objections, administrative information, and appeals will be extended from 20 working days to two months
- DIA will review Charities Services' performance measures, operational practices
-o0o-
The DIA Charities Contact Centre is temporarily unavailable. To get in touch, email info@charities.govt.nz. You can still call and leave a message but due to significant call volumes you may not always be able to leave a voice message. If you would prefer to talk, please send an email and DIA Charities will call you back.
-o0o-
If you have an opinion piece, or article on a non-profit topic that you would like to be considered for the NFP Resource website or this newsletter please Contact the Editor to discuss
|
