Charities Amendment Bill 2022 - 5 Things We’d Like to See Change

The bill amends the Charities Act 2005 - a key piece of legislation for the charitable sector that will impact over 28,000 registered Charities across Aotearoa. While the amendment bill includes some promising changes such as simpler compliance requirements and more affordable access to justice, the bill has some concerning creases we’d like to see ironed out. 

Here are just five of them: 
 

Definition of Officers 

Let’s take a moment to recap on who officers are and what exactly they do. Officers of a charitable entity are responsible for ensuring that their organisation is run in accordance with its rules and the requirements of the Charities Act. They have a crucial role in ensuring that their organisation’s funds and assets are used exclusively to advance the charitable purpose of the organisation. 

The new bill extends the definition of officers broadly to “a person who is able to exercise significant influence over the management or administration of the entity” (Amendment Section 4). 



This would allow people both within and outside the organisation to become officers, including any staff members, and even accountants and lawyers external to the organisation. As those working in the sector will know, exercising influence over management does not make you fit for purpose as a Charity Officer. 

As the Charities Board has the right to ban an officer under Part 4 of the Incorporated Societies Act, Charities Services gain the power to essentially fire staff members, taking away the employment rights and responsibilities of the organisation's governing body. 

It is this kind of regulatory change that shrinks the legal independence of Charities from Government and disrupts the very structure of the Community Sector. 

No Post Implementation Review 

The purpose of a post-implementation review is to evaluate the legislation against its expected outcomes. Unfortunately, the new bill has no mention of a review of any sort. With new regulatory restrictions, should it not be necessary to check the validity of the new legal requirements, and keep a finger on the pulse of unintended consequences that emerge? We think so.

Still looking for a first Principles Review 

For the bill to be implemented effectively, there needs to be a first principles review of the Act conducted by an independent body. This ensures comprehensiveness, integrity and removes the risk of conflict of interest.  

It’s frustrating to see such a review, which has been promised to the Charitable Sector for some time now, be ignored once again. 

Annual Review of Procedures 

 While some amendments in the bill reduce compliance work and make reporting easier for Charities (particularly smaller organisations), some add further, unnecessary restrictions that bog organisations down and take their time away from meaningful mahi in their communities. An example of this is the requirement for an annual review of procedures. 

While there are Charities with out-of-date constitutions, legislating to enforce all Charities to complete annual reviews is overkill. Yes - we should encourage a better understanding and use of constitutions, but this should be done through education and cooperative work between the Charities Services and respective organisations. Legislating this as an annual requirement is unnecessary and over-regulatory. 

A Eurocentric Framework 

As Doctor Elizibeth Kerekere states in her address to the House, the Bill represents a “Eurocentric framework that our Māori, Iwi, Hapū and Whānau organisations are working within.” 

 
We are disappointed to see that the bill includes no mention of a Māori Advisory committee being formed to show true collaboration between Charities Services and Tangata Whenua. 

 
Community Networks Aotearoa will be advocating for the changes above (along with a long list of others) to the Select Committee in December 2022. 

 
This is a crucial time for Charities in Aotearoa and your voice matters. Public submissions for the Charities Amendment Bill close December 9th, 2022. Whether you’re 14 or 74, a volunteer or a director, all public submissions are given the same respect and value. All you need is an interest and opinion on the bill or inquiry. 

Read the full bill on the New Zealand Legislation Website here.