New Zealand Law Society - One quarter of charity registration applications withdrawn

One quarter of charity registration applications withdrawn

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Around one quarter of applications from organisations for registration under the Charities Act 2005 in the year to 30 June 2018 were withdrawn, the Charities Services section of the Department of Internal Affairs says.

In its February 2019 newsletter, Charities Services says it received 1,087 applications for registration, with 268 withdrawn and the rest approved.

The withdrawal was either at the request of the organisation or because organisations did not respond to correspondence during the registration process, Charities Services says.

Analysis of applications during December 2018 and January 2019 shows that 32 were withdrawn and 222 were approved. None were declined.

Of the withdrawn applications, 12 (38%) were withdrawn at the request of the organisation and 20 (62%) because the organisation did not provide Charities Services with further information asked for or did not respond to a notice about matters that might result in the application being declined.

Charities Services says of those withdrawn, it did not appear that the purposes of 12 organisations were charitable. Another 10 organisations did not have adequate provisions in their rules documents to prevent individuals profiting from the charity, or to provide that if they stopped operating any remaining assets would go to charitable purposes.

Seven organisations did not provide sufficient information about the activities they planned to undertake to advance their charitable purposes.

Charities Services says organisations that have withdrawn applications can reapply at any time and there is no cost to applying for registration.