What Is A Public Benevolent Institution?

Are you a charity that is registered or seeking to be registered as a Charitable Trust or with Charities Services in New Zealand?

Unsure what the requirements are or how they work in New Zealand?

Read on to learn all the ins and outs of charitable status in New Zealand.

What Is A Charitable Trust in New Zealand?

According to Charities Services, a division of the Department of Internal Affairs, a charitable trust is an organisation that is set up for exclusively charitable purposes and carries out activities that advance these purposes in New Zealand.

For a charity to be recognised as such, it needs to meet certain requirements:

1. It must be established and maintained exclusively for charitable purposes;
2. It must benefit the public or a sufficient section of the public.

Let’s break down these legal definitions.

Breaking Down Legal Definitions

What Is A Charity?

In New Zealand, an entity is a charity if it is established for charitable purposes and benefits the public or a sufficient section of the public.

What Is A Charitable Purpose?

Charitable purposes in New Zealand are traditionally divided into four categories:

• The relief of poverty;
• The advancement of education;
• The advancement of religion;
• Other purposes beneficial to the community.

If your charity exists for any of these purposes, it will be deemed to have a ‘charitable purpose’.

What Is Public Benefit?

Your charity’s charitable purpose should be for public benefit. This means that it should benefit the public or a sufficient section of the public.

Disqualifying Purposes

There are certain purposes that are not considered charitable, such as purposes that are primarily political or commercial in nature.

More on charities and whether they can engage in political activities can be found here.

What Is An Institution?

In New Zealand, an institution is an organisation that is established for a charitable purpose and is capable of enduring beyond the lives of its members.

To be recognised as a charitable institution, your organisation must be more than just a fund; it must actively engage in activities that further its charitable purposes.

Is My Organisation A Charitable Trust?

For your organisation to be recognised as a charitable trust, it must be established exclusively for charitable purposes and benefit the public or a sufficient section of the public.

It is vital that you understand the legal definitions outlined above to ensure your organisation qualifies for charitable status in New Zealand.

How To Register As A Charitable Trust

To become a registered charity, you must apply to Charities Services. They provide a helpful checklist to assist with your application. Let’s break it down.

Charitable Purpose	Your organisation must have a clear charitable purpose that benefits the public or a sufficient section of the public.
Rules Document	This is your organisation’s formal document that sets out its name, purposes, and the rules it operates under. This could be called your trust deed or constitution.
Officers	You must provide details of the officers of your organisation, including their names and addresses.
Financial Information	You must provide details of your organisation’s finances, including its financial year-end date and information about its current financial situation.

Examples Of Charitable Trusts

Some examples of charitable trusts in New Zealand may include:

• Food banks for those in need;
• Educational scholarships;
• Religious organisations;
• Environmental conservation groups;
• Community health clinics;
• Disaster relief organisations.

Each of these examples must be established exclusively for charitable purposes and benefit the public or a sufficient section of the public to be considered a charitable trust.

Charitable Trust Tax Benefits

Registered charities in New Zealand are eligible for tax exemptions and donee status, which allows for supporters to claim tax credits for donations made to the charity.

Are There Any Disadvantages Associated With Charitable Trusts?

While there are many advantages to being a registered charity, including tax benefits, there is also a significant process involved in registering and maintaining charitable status.

It is important to understand all the requirements and ensure that your organisation continues to meet them.

Need More Help?

If you are seeking to register your organisation as a charitable trust, it can be a lengthy process, but there are many advantages involved.

If you have any further questions or require advice in regard to charitable trusts, we are here to help!

Reach out to our team for a free, no-obligations chat at [email protected] or 0800 002 184.

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