Changed charity rules to impact New Zealand sport

The ability of many New Zealand sports to raise funds through philanthropic donations is under threat from a move to deregister potentially hundreds of sporting bodies from the register of charities.

Parliament amended the Charities Act in 2012 specifically to include the promotion of amateur sport as a charitable purpose "if it is a means by which a charitable purpose listed in [the definition of charitable purposes] is pursued".

More than 1,800 sporting bodies are registered charities. Donors can get tax rebates and the bodies can raise money from some philanthropic trusts that give only to registered charities.

However, Internal Affairs Department's Charities Services officials are insisting sports bodies on the register must fit within the definition of charitable purposes, which is defined in a 414-year-old law as including "every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community".

Court decisions since have interpreted this last phrase to include only activities that fit within the "spirit" of charitable activities listed in the preamble to the Elizabethan law, and that directly benefit a sufficient section of the community, not just club members or elite athletes.

Swimming New Zealand has been deregistered already on the grounds that its promotion of competitive swimming is "an end in itself" and is not "charitable".

Swimming New Zealand Chief Executive Christian Renford said the change might force cuts in water safety and learn-to-swim programmes.

Rowing New Zealand says the move threatens its plan to raise $1 million from philanthropic donors to send more rowers to Rio than it has fielded in past Olympics.

Rowing New Zealand Chief Executive Simon Peterson fears that losing charitable status wil have a "significant impact" on plans to raise private donations for the Rio games.

Peterson told the NZ Herald "we have never before had 14 boats at the Olympics, and we have to find a significant amount of funding to make that a reality both for Rio and for Tokyo in 2020.”

Click here for guidance on charitable registration for sport and recreation organisations from Sport New Zealand.

7th May 2012 - PAPATOETOE SPORTS AND COMMUNITY CHARITABLE TRUST ANNOUNCE NEW GENERAL MANAGER