Starting a charity can feel like a big, purpose-driven step - and it’s normal to wonder what paperwork you actually need to get it right from day one.
A charity charter is one of those documents that comes up early, especially if you’re planning to register with Charities Services, apply for grants, or bring other people on board to help you run the organisation.
This guide is a practical, 2026-updated explanation of what a charity charter is in New Zealand, when you need one, what it should include, and what to think about before you lock it in.
What Is A Charity Charter (And What Does It Do)?
A charity charter is a written “rulebook” for your charity.
It sets out the charity’s purpose, how it will operate, who’s in charge, and the rules for making decisions. It also helps show the public, funders, regulators and your own members that the organisation is organised, accountable and genuinely set up for charitable purposes.
Depending on how your charity is structured, your “charter” might also be referred to as:
- a constitution (common for incorporated societies),
- a trust deed (for charitable trusts),
- rules (another common label for incorporated groups), or
- a governing document (a catch-all term used by Charities Services).
Even though people use different terms, the idea is the same: your charity needs clear governance foundations, so everyone understands how it works and how decisions are made.
Without a clear charter-style document, charities often run into avoidable issues, such as:
- disputes between founders, trustees or committee members,
- confusion about who has authority to approve spending or sign contracts,
- problems when applying for grants (many funders ask for a copy of your governing document), and
- difficulty meeting your obligations as you grow (especially once you have staff, volunteers, or sensitive information).
Do I Legally Need A Charity Charter In New Zealand?
The honest answer is: it depends on what you mean by “need”, and how you’re setting up your charity.
In practice, most charities in New Zealand will need a written governing document (often called a charter), because:
- you usually need one to register your organisation (for example, as an incorporated society, charitable trust, or company), and
- you generally need one to register as a charity with Charities Services (because Charities Services assesses whether your purposes and rules are genuinely charitable).
If your charity is informal (for example, just a small group fundraising casually without a separate legal entity), you might not have to have a charter - but operating informally can create real risks around liability, governance, and financial accountability.
So even when it’s not strictly “mandatory” in every scenario, a well-drafted charter is one of the best ways to protect your charity from day one.
Charter vs Registration: The Key Practical Point
If you want to be taken seriously by donors and funders, and you want an organisation that can operate beyond the original founder’s involvement, you’ll almost always want a formal structure. Once you choose that structure, a governing document becomes central.
For example, if you set your organisation up as a company (some larger charities do), governance is typically supported by documents like a Company Constitution and clear director processes - not just informal “understandings” between people.
When A Charity Charter Is Essential (Common Scenarios)
Most people start thinking about a charity charter when they hit one of these milestones:
You Want To Register With Charities Services
To register as a charity, you’ll need to show what your charity exists to do and how it is governed. Your charter helps demonstrate that:
- your purposes are charitable (and provide a public benefit),
- the charity’s assets and income will be used to further those charitable purposes, and
- there are proper governance rules around decision-making and accountability.
If the wording in your charter is unclear, too broad, or doesn’t properly “lock in” the charitable purpose, you can face delays or difficulties during registration.
You’re Applying For Grants Or Partnering With Funders
Grant providers and philanthropic funders commonly request your governing document.
They’re usually checking things like:
- what your charity does (and what it doesn’t do),
- who controls the funds,
- how decisions are approved, and
- what happens if the charity winds up.
A charter that’s been copied from a generic template can backfire here - especially if it doesn’t match how you actually run the organisation or doesn’t reflect your activities.
You’re Bringing In New Trustees, Board Members Or A Committee
As soon as there’s more than one decision-maker, you need a clear framework for roles and authority.
This is where governance can either feel smooth and professional, or messy and stressful. A good charter helps keep everyone aligned - and gives you a fair process when there are disagreements.
You’re Hiring Staff Or Engaging Contractors
Your charter isn’t an employment contract, but it often supports your internal governance around spending approvals, delegations, and oversight.
Once you hire, it’s also important to have the right documents in place, such as an Employment Contract (even if you’re only hiring your first team member).
Many charities handle sensitive information - names, contact details, health information, family circumstances, or financial hardship details. Even if your charity is small, you may have responsibilities under the Privacy Act 2020.
That’s why it’s common for charities to also put a Privacy Policy in place once they start collecting data via websites, donation platforms, mailing lists, or intake forms.
What Should A Charity Charter Include?
There’s no single perfect template that works for every charity (and that’s exactly why it’s risky to copy one blindly).
That said, most charity charters in NZ cover a similar set of core areas. Below is a practical checklist to help you understand what should usually be included.
1. Your Charity’s Name And Purpose
This is the heart of the document.
Your purpose should clearly describe what the charity exists to do, who it benefits, and how it provides a public benefit. Vague purposes can create issues later (including with registration and funding), while overly narrow purposes can stop you from expanding into new activities.
You also want to avoid purpose wording that suggests private benefit or member benefit as the primary goal, because that can undermine charitable status.
2. Powers And Activities
Your charter often includes “powers” - essentially the things your charity is allowed to do to pursue its purpose. For example, it might have the power to:
- fundraise and receive donations,
- run events,
- apply for grants,
- purchase or lease equipment, or
- partner with other organisations.
This section matters because it sets boundaries, and it can help reduce internal arguments later about whether a particular project is “allowed”.
3. Membership Rules (If You Have Members)
Some charities have members (especially incorporated societies). If that’s you, your charter should deal with:
- who can become a member,
- how members are admitted and removed,
- member rights (including voting rights), and
- member responsibilities and conduct expectations.
If you don’t have members (for example, you are governed by trustees), your charter should make that clear so there’s no confusion about who “owns” the organisation or makes decisions.
4. Governance: Trustees, Board Or Committee Rules
This is where you set up how your charity will actually be run.
Common points include:
- how many trustees/committee members you need,
- eligibility criteria (for example, conflict rules or disqualification),
- appointment and removal processes,
- term lengths and re-appointment rules,
- meeting procedures (notice, quorum, voting), and
- who can sign documents or approve spending.
It’s also smart to address conflicts of interest early. Many charities back themselves into a corner by not having a clear conflict process when founders or trustees are also suppliers, employees, or related to beneficiaries.
5. Financial Management And Use Of Funds
Funders and regulators expect clear rules around money - and so should you.
Charters often cover:
- how bank accounts are controlled (including signing authorities),
- how expenditure is approved,
- basic record-keeping obligations, and
- the rule that funds and assets must be used to further the charity’s purposes.
If you plan to pay staff, reimburse volunteers, or pay trustees for services in limited circumstances, it’s important to structure this carefully so you don’t create governance or charitable-purpose issues.
6. Changes To The Charter (Amendments)
At some point, your charity will likely need to update its rules - for example, when you expand your activities, restructure governance, or modernise processes.
Your charter should clearly state:
- who can propose amendments,
- what voting threshold is required, and
- any approval/notification steps required by your structure or regulator.
This is one of those “easy to ignore” areas that becomes a problem later if it’s not clear.
7. Winding Up And Asset Distribution
This section is crucial for registered charities.
Generally, a charity’s assets can’t be distributed privately to members or trustees when the charity winds up. Instead, remaining assets are typically transferred to another organisation with similar charitable purposes.
If you get this wrong, you can create real issues with registration or ongoing compliance.
Common Mistakes When Drafting A Charity Charter
A charity charter isn’t just admin - it’s a risk-management document. The most common problems usually come from rushing it, copying templates, or not thinking through how the charity will operate in real life.
Using A Template That Doesn’t Match Your Structure
A trust deed, an incorporated society constitution, and a company constitution aren’t interchangeable. If you use the wrong “type” of charter, you can end up with rules that don’t work legally or practically.
If you’re unsure which structure fits your goals, it’s worth getting advice early, because changing structure later can be time-consuming and costly.
Being Too Vague About Purpose
“Helping the community” sounds great, but it can be too broad to operate smoothly (and may raise questions in a registration process).
On the flip side, being too narrow can trap you. Imagine your charity starts out providing after-school tutoring, then later wants to expand into mentoring and career pathways. If your purpose is drafted too tightly, you might have to amend your charter before you can confidently expand.
Not Addressing Conflicts Of Interest
Conflicts of interest aren’t automatically “bad” - they’re common in charities, especially in small communities.
The key is having a clear process so trustees/committee members:
- declare conflicts,
- step out of decisions where appropriate, and
- keep records showing the charity acted fairly.
Unclear Decision-Making Rules
When there’s no clarity on quorum, voting thresholds, or who has signing authority, charities can end up stuck - unable to approve bank changes, enter contracts, or respond quickly to urgent issues.
Good governance clauses prevent deadlocks and reduce the risk of internal disputes becoming public (or ending up as formal complaints).
Not Aligning Your Charter With Your Day-To-Day Activities
Your charter should reflect how your charity actually works.
For example, if you’re planning to run programmes through partner organisations, or operate events regularly, your powers and governance settings should support that - not accidentally restrict it.
Key Takeaways
- A charity charter is your charity’s core governing document, setting out your purpose, governance rules, and how decisions are made.
- Most New Zealand charities will need a charter-style document in practice, especially if you’re registering a legal entity and registering as a charity.
- A strong charter typically covers purpose, powers, governance (trustees/committee), membership (if relevant), finances, conflicts of interest, amendment rules, and winding up.
- Templates can be risky if they don’t match your charity’s structure or real-life operations, and vague drafting can cause delays, disputes, or compliance problems later.
- As your charity grows, you’ll often need supporting documents too, like an Employment Contract for staff and a Privacy Policy if you collect personal information.
- Getting your governance foundations right from day one makes it easier to raise funds, bring in new people, and operate confidently as you scale.
If you’d like help putting the right charter in place (or choosing the best structure for your charity), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
