Charitable organisations are organisations (whether incorporated or not) that carry out charitable activities or exist exclusively for charitable purposes. Since 1 July 2008 a charitable organisation needs to be registered by the Charities Commission to receive tax exemptions.
Income tax and charitable organisations
Charitable organisations are liable for income tax if they:
- operate with no written rules, constitution or trust deed, or
- operate under a set of rules, a constitution or a trust deed that doesn't meet the requirements for income tax exemption, or
- use business income for charitable purposes outside New Zealand.
Registration of charities
The Charities Commission maintains a register of charitable entities that opened on 1 February 2007. Registration is voluntary, but if a charity wishes to be exempt from income tax and donors of gifts exempt from gift duty it will need to register.
Date published: 01 Mar 2010
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