Charities update - Amendments to Charities Act 2005
Charities update - Amendments to Charities Act 2005
As a reminder to registered charities, there have been a number of amendments to Charities Act 2005 which are now in effect. Please ensure that you are familiar with the new requirements and are compliant therewith.
Charities Services has created a Charities Act Hub to assist registered charities with keeping up to date with Charities Act 2005 changes and changes to reporting requirements that are administered by The External Reporting Board (XRB).
A summary of the main changes is provided below:
You can visit the Charities Act Hub for more information.
In addition, Charities Services has run a webinar detailing the above changes which is available on its website. Due to the demand for this webinar, Charities Services will be running 4 additional webinars in September 2024. You can register by clicking on the below dates:
For more detail on the requirements of the new standards please refer to our May 2023 article.
For more on the above, please contact your local BDO representative.
Charities Services has created a Charities Act Hub to assist registered charities with keeping up to date with Charities Act 2005 changes and changes to reporting requirements that are administered by The External Reporting Board (XRB).
A summary of the main changes is provided below:
Model rules published
Three sets of model rules documents have now been published. You can download them from the Charities Services website.Changes to officer definition
The definition for who counts as an officer is now wider than the previous definition and may now include people who have “significant influence over substantial decisions”. The change allows charities to represent themselves more accurately on the register and helps the register better reflect the delegation of powers and responsibilities in charities. Charities Services have created an article that explains the changes.Requirement to review governance procedures
Registered charities now need to review governance procedures at least once every three years. This change ensures officers regularly think about how the charity runs, and whether its rules and processes are still fit for purpose. You can find out more here. In addition we recommend that you download the Charities Services Governance Checklist to assist in the review of governance procedures.Application response time has increased
If Charities Services require any additional information as part of an application for registration, the response period has increased to be two months instead of 20 working days.Disqualification of officers
Te Rātā Atawhai, the independent Charities Registration Board, now has powers to disqualify officers for serious wrongdoing without having to deregister the charity they are associated with. Previously an officer could only be disqualified if their charity was also deregistered.Objections and Appeals
Charities will be able to object to some of Charities Services decisions. These include decisions to register or deregister charities; to publish or restrict details about charities on the public register; to backdate the effective date of registration of charities; or to grant exemptions from compliance with the Charities Act 2005. This means that people will be able to appear before Te Rātā Atawhai or Charities Services to object and be heard before decisions are made. Charities will be able to appeal decisions made by Charities Services or Te Rātā Atawhai to the Taxation Review Authority (before the High Court).You can visit the Charities Act Hub for more information.
In addition, Charities Services has run a webinar detailing the above changes which is available on its website. Due to the demand for this webinar, Charities Services will be running 4 additional webinars in September 2024. You can register by clicking on the below dates:
Financial Reporting
We also remind Tier 3 and Tier 4 registered charities that you will need to start migrating to the External Reporting Board’s (XRB) new standards for Tier 3 and Tier 4 entities. The new standards are mandatorily applicable for periods beginning on or after 1 April 2024.For more detail on the requirements of the new standards please refer to our May 2023 article.
For more on the above, please contact your local BDO representative.