Do I Need A Charity Charter?

If you’re running a charity in New Zealand, there are several things you need to consider when it comes to setting it all up. For example, what legal structure will you be choosing? How will you be registering your charity? Are you compliant with all the relevant laws? 

In this article, we’ll go through a Charity Charter – this is an important document that essentially sets out how your charity will operate. 

What Is A Charity Charter?

A Charity Charter is akin to a constitution for a company. For a charity in New Zealand, it’s a bit different. 

A charity is a not-for-profit organisation, so the governing document needs to outline some key terms, including:

• The charity’s charitable purpose
• That the charity operates on a not-for-profit basis
• Rules around how the board (or the people making the executive decisions) can run the charity and consult other stakeholders

What Is The Process For Creating A Charity Charter?

If you’re looking to have a charter created for your charity, you’ve come to the right place. It’s prudent to have a lawyer assist you with the process as there are a number of legal requirements. 

For example, you want to ensure your charitable purpose is worded correctly and appropriately (this is something that our lawyers at Sprintlaw can help with!). 

The process looks something like this:

1. Draft The Document And Ensure Compliance With Charities Act 2005

Once your first draft is complete, you’ll need to ensure it complies with the Charities Act 2005. This is crucial for registration with Charities Services in New Zealand. 

2. Register Your Charity With Charities Services

After ensuring compliance, you must register your charity with Charities Services. Once registered, your charity’s details will be available on the public Charities Register. 

This ensures transparency with the public about how your charity operates and whether it is meeting its charitable purpose. However, your Charter should not include personal information when uploaded to the Register, such as addresses or phone numbers of members, to protect their privacy. 

What If I Don’t Want To Make My Charity Charter Public?

In certain cases, you may be able to request for your Charter to be withheld from the public register. You can do this by contacting Charities Services directly. 

However, this request can only be granted if certain reasons or exceptions apply. Charities Services will have to consider factors such as:

• Does the publication endanger public safety?
• Is the information sensitive so as to cause harm to the charity or an individual?
• Is the information inaccurate or likely to mislead?
• Is the information offensive? 

What If I Want To Make Changes To My Charity Charter?

If you wish to update or make any changes to your Charter, you need to notify Charities Services with an updated version of the document. 

However, significant changes might affect your charity’s eligibility for registration. For instance, substantial amendments could result in your charity being deregistered. 

To avoid this, it’s advisable to seek legal assistance for any changes you wish to make to your Charity Charter before notifying Charities Services. 

Other Requirements For A Charity

Setting up a charity in New Zealand requires careful consideration of structure, registration, governing documents, and your charitable purpose. 

Generally speaking, charities and their charitable purposes can be quite political in nature, so there are a number of ways that a charity could be disqualified.

For example, if your charity’s purpose is against public policy, these are grounds for disqualification. 

Need A Charity Charter?

If you’re looking to have a Charity Charter drafted, it’s important that you are compliant with the relevant New Zealand laws. You want to ensure your charitable purpose is carefully worded, and is not a disqualifying purpose. 

It’s a good idea to get a lawyer to help you out with this. The process can get complex depending on the nature of your charity, so Sprintlaw’s expert lawyers can ensure that your Charity Charter is tailored to your organisation’s needs. 

You can reach out to us for a free, no-obligations chat at [email protected] or 0800 002 184.

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