ANZMES Calls For Equitable Tax Policies To Sustain Charitable Impact
ANZMES (The Associated New Zealand Myalgic Encephalomyelitis Society) has submitted a detailed response to the government’s consultation on tax exemptions for charities and not-for-profits (NFPs), urging them to support rather than hinder charitable eorts across Aotearoa/New Zealand. The submission highlights the urgent need to preserve critical tax relief measures for charitable organisations, ensuring that they can continue delivering essential services to vulnerable communities.
The response warns that taxing income from mission-aligned business activities, such as online stores or op shops, would jeopardise the financial sustainability of smaller charities. It could also reduce their ability to fund advocacy, education, and research initiatives for underrepresented conditions like ME/CFS.
“ANZMES exists to bridge gaps in understanding, support, and research for ME/CFS,” said Fiona Charlton, President. “We rely on innovative, mission-aligned funding solutions to fulfil our purpose. Taxing these e orts would divert resources away from the people who need them most.”
Key Points from ANZMES’ Submission:
1. Mission-Driven Income Should Remain Exempt:
- Income from mission-aligned activities directly supports the organisation’s advocacy, education, and patient resources. Taxing this income would erode the charity’s capacity to deliver its mission.
2. Public Trust and Donor Confidence:
- Taxing revenue risks undermining public trust in charities and donor intentions. Restricted funds like the Kathy Foley Trust, which supports diagnostic and emergency patient needs, exemplify the necessity of preserving exemptions.
3. Volunteer Contribution Recognition:
- ANZMES depends on over 2,500 volunteer hours annually to provide cost-eective services. Imposing additional taxes on its income undervalues this societal contribution.
4. Equitable Tax Thresholds:
- Current thresholds for charity business income exemptions, such as the $1,000 deduction, are outdated. ANZMES advocates for a higher exemption threshold to reflect the realities of small charities’ operations.
“We are committed to ensuring that New Zealand’s tax system reflects the values of fairness, inclusivity, and support for the community,” added Charlton. “Maintaining tax exemptions for mission-driven income is essential for the survival and growth of organisations like ANZMES, which play a vital role in addressing gaps in government and private sector support.”
ANZMES invites policymakers and the public to engage in meaningful dialogue to ensure that tax policies support, rather than hinder, charitable eorts across Aotearoa.