Beware: Why Your Charity May Be Disqualified

If you run a charity in New Zealand, you might be wondering where the line is drawn between legitimate public advocacy and political activity that could jeopardise your status.

Advancing a social cause often involves political elements, so it’s a common concern for many charities.

Understanding what activities you can and cannot engage in is crucial for your charity’s compliance.

We’re here to clarify the distinctions for you. Let’s delve into the details below.

What Does The Law Say?

1. Charitable Purposes

Under the Charities Act 2005 (NZ), a charity must have a ‘charitable purpose’ that benefits the public.

According to section 5 of the Charities Act 2005 (NZ), your charity has a ‘charitable purpose’ if it is for:

• The relief of poverty
• The advancement of education
• The advancement of religion
• Any other matter beneficial to the community

If your charity’s objectives align with any of the above, it is considered to have a ‘charitable purpose’.

However, to maintain your charity’s status, you must avoid ‘disqualifying purposes’.

2. Disqualifying Purposes

Engaging in or promoting activities that are illegal or contrary to public policy can disqualify your charity.

For example, if a charity’s purpose is to support an unlawful organisation, it would be disqualified.

Similarly, charities cannot have the purpose of promoting or opposing a political party or candidate for political office.

While charities can engage in advocacy related to their purpose, they must not cross the line into political campaigning.

What Activities Are Off-Limits for My Charity?

Charities must not directly support or oppose political parties or candidates.

For instance, a charity cannot fund a political party, as this would be seen as political promotion.

Charities Services, the regulator for charities in New Zealand, enforces compliance with the Charities Act 2005 (NZ) and ensures charities adhere to their purposes.

Charities Services provides guidelines on advocacy and political activities, which can be found here.

It’s important to stay informed about these guidelines to ensure your charity’s activities align with its purpose.

What Can My Charity Do?

While avoiding direct political campaigning, your charity can still engage in public debate and advocate for changes relevant to its purpose.

For example, a charity focused on environmental conservation can discuss climate policy and advocate for laws that protect the environment, without supporting or opposing political figures.

Legitimate Public Advocacy vs. Disqualifying Political Activity

Understanding the difference between acceptable advocacy and disqualifying political activity is key to maintaining your charity’s status.

Legitimate Public Advocacy (Do’s)	Political Activity Warranting Disqualification (Don’ts)
Advocating for policy changes aligned with your charitable purpose Discussing laws and suggesting improvements Informing members about policies affecting your charity Fundraising to support your charitable activities	Attacking political parties or candidates Blaming politicians for laws that negatively impact your cause Encouraging members to vote for or against a party or candidate Raising funds to support or oppose political entities

These examples should help clarify the boundaries between advocacy and political activity.

Need More Help?

If you’re unsure about your charity’s activities and their compliance with New Zealand law, we’re here to help.

Contact our team for a free, no-obligation chat at [email protected] or 0800 002 184.

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