The Department of Internal Affairs (DIA) called for public submissions on the Modernising the Charities Act 2005 Discussion.
We connected and received feedback from a wide range of our members, including our Charities and Not for Profit segment advisory committee.
CA ANZ members expressed that it is important that the necessary time is taken to ensure that the Act is fit for purpose and suits the different needs of New Zealand's diverse charities sector participants.
It is important that the necessary time is taken to ensure that the Act is fit for purpose
Chartered Accountants ANZ prepared and lodged its submission to DIA on 31 May 2019.
The key points of our submission:
- We recommend a principles-based approach is taken for revisions to the Act to allow for flexibility, adaptability and to provide long term benefits for the charities sector.
- Our members' views on the introduction of a new micro-charity tier are divided. However, if one is introduced, we recommend the threshold should include both an asset test and an operating payments test.
- We support the introduction of a requirement to disclose the reserves policy in order to improve transparency. However, we do not consider the introduction of minimum annual disbursements would be appropriate given the potential implications for charities' long-term effectiveness and sustainability.
- We consider the introduction of principles-based governance standards will help to improve sector governance, however we recommend existing requirements are also reviewed to minimise duplication.