Article - The Act of Charity
The Act of Charity
by Gary GemptonAlthough it-s said charity begins at home, for many it will actually begin with the Charities Act.
Under the Charities Act 2005, a new body called the Charities Commission was launched in July last year. One of its primary functions is to help support people in the management and governance of charitable trusts, through education.
The Commission will also have an important role ensuring there is no untoward activity in the management of charities by monitoring all applications for registration as charitable trusts, scrutinising annual returns from charities and encouraging effective use of charitable funds.
The formation of the Charities Commission is timely. Timely because there’s quite some misunderstanding about charitable trusts as well as some unease among the public about the credentials of collectors who knock on their door.
The Charities Act follows the well-established common law test that a charity exists “to advance education or religion, relieve poverty or otherwise be beneficial to the community”.
Any organisation can register as a charitable entity if it is exclusively for charitable purposes and not for the private profit of any individual or group.
Under the new Charities Act, only charities registered with the Commission are eligible for tax-exempt status.
This means that existing charitable trusts or incorporated societies will need to register with the Commission by October 2007 if they wish to remain tax-exempt and to be a "registered charitable entity".
The Charities Commission will be providing guidelines and advice on establishing and registering a charity from mid-2006.
Charitable trusts provide a long-lasting way for people to fund their favourite local causes, as they can be established in perpetuity unlike some other kinds of trusts. You may be interested in becoming involved with a charitable trust, or even setting up one yourself.
However, if you are not interested in looking after the day-to-day management of your own trust, or the expense of setting one up yourself, but would like a say in how your funds are used for the community, then you could consider using The Acorn Foundation. This is a charitable trust particularly for the benefit of the people of Tauranga and the Western Bay of Plenty.
Consult your lawyer for advice on using the Acorn Foundation or whether establishing a charitable trust will help you in achieving your objectives.
A copy of the Charities Act 2005 can be viewed at www.legislation.co.nz , or visit www.charities.org.nz for more information.
Under the Charities Act 2005, a new body called the Charities Commission was launched in July last year. One of its primary functions is to help support people in the management and governance of charitable trusts, through education.
The Commission will also have an important role ensuring there is no untoward activity in the management of charities by monitoring all applications for registration as charitable trusts, scrutinising annual returns from charities and encouraging effective use of charitable funds.
The formation of the Charities Commission is timely. Timely because there’s quite some misunderstanding about charitable trusts as well as some unease among the public about the credentials of collectors who knock on their door.
The Charities Act follows the well-established common law test that a charity exists “to advance education or religion, relieve poverty or otherwise be beneficial to the community”.
Any organisation can register as a charitable entity if it is exclusively for charitable purposes and not for the private profit of any individual or group.
Under the new Charities Act, only charities registered with the Commission are eligible for tax-exempt status.
This means that existing charitable trusts or incorporated societies will need to register with the Commission by October 2007 if they wish to remain tax-exempt and to be a "registered charitable entity".
The Charities Commission will be providing guidelines and advice on establishing and registering a charity from mid-2006.
Charitable trusts provide a long-lasting way for people to fund their favourite local causes, as they can be established in perpetuity unlike some other kinds of trusts. You may be interested in becoming involved with a charitable trust, or even setting up one yourself.
However, if you are not interested in looking after the day-to-day management of your own trust, or the expense of setting one up yourself, but would like a say in how your funds are used for the community, then you could consider using The Acorn Foundation. This is a charitable trust particularly for the benefit of the people of Tauranga and the Western Bay of Plenty.
Consult your lawyer for advice on using the Acorn Foundation or whether establishing a charitable trust will help you in achieving your objectives.
A copy of the Charities Act 2005 can be viewed at www.legislation.co.nz , or visit www.charities.org.nz for more information.