10 January 2007

2007 An Important Year For Charities

The registration of charities under the new Charities Act will begin next month, marking a new era of transparency and accountability for New Zealand charities.

On 1 February 2007, the Charities Commission will open the Charities Register to receive applications for registration under the Charities Act 2005. While registration with the Charities Commission is voluntary, charities that want to retain their income tax and gift duty exemptions will need to register before the tax laws change on 1 July 2008.

Chief Executive of the Charities Commission Trevor Garrett said the Charities Register, which will be available at www.charities.govt.nz, will help to increase public confidence in the charitable sector.

"Once there's a number of charities registered, the Register will provide more information about the purposes, activities, income and expenditure of charitable organisations in New Zealand," he said. "It will become a valuable resource for anyone who wants to make an informed donation to charity."

To be eligible for registration, organisations must show that they have a charitable purpose that relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community. In addition, the purpose must be directed towards the public benefit.

Mr Garrett said every applicant will be judged on its rules and activities on a case-by-case basis.

Once registered, charities will receive a unique registration number, which will indicate to the public that the charity has met the requirements of registration. Members of the public will be entitled to ask fundraisers for this number in situations where there is any doubt about a charity's legitimacy.

The Charities Act established the Charities Commission on 1 July 2005 to provide a registration and monitoring system for charitable organisations in New Zealand and to provide education and support to the charitable sector.

ENDS

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