We can incorporate a Trust or an Society without achieving charitable status.
There are 3 options:
1. Pay for everything ourselves. Easiest and most expensive.
2. Incorporate a new body and seek charitable status with the Charities Commission and/or IRD. There are tax benefits, the main benefit is to allow donors to get tax back on their donation. This is very difficult to achieve, I know many organizations who have tried to get it and failed for years. I would not bother going down this path, the effort is not worth it, plus we may simply not meet the criteria for a charitible status anyway.
3. Incorporate a trust or Incorporated society, but without charitable status. We would likely want to include rules about no direct financial benefit goes to any of the members or officers of the society such as Marianne's attachment, those are in the standard rules for these types of organisations these days. This seem to mean we can receive funding from some donee organisations that we would otherwise not be able to receive. Regardless of charitable status.
For anything other than option 1, we would need some people who were willing to volunteer. If a few people got together and agreed to start a group, they can review and decide whether to go for Charitable Status or not.
Either way it is a lot of work, and more work that I think is worth it for the likely results, which is why I won't be volunteering. But if we get a group of people willing to do it I would be more than happy for them to give it a go.
If we don't get any volunteers there is nothing to decide.
Cheers, Alex
On 26/02/20 1:55 pm, mariannequinn@xtra.co.nz wrote:
Hi team: I’m very cautious about the suggestion that we use a vehicle such as an incorporated society and/ or a charitable trust to fund the restoration of a) the memorial arch and fence and b) the remainder of the fence in front of houses with entrances on Alva and Hight Streets.
My caution comes from changes to the requirements for Incorporated societies in recent years and also the tightening up of what is a ‘genuine charitable cause’, meaning the provision of a good that benefits or could benefit most people in the community.
I’m attaching the amendments made at the AGM of one of my professional bodies that was formed as an Incorporated Society more than 20 years ago. These amendments were suggested by the IRD and make it clear that individuals cannot benefit from the funds of the Society. As fences are attached to properties that increase in value and benefit their owners, its my belief that this would be a bar we could not cross.
I will also bring a column from last weeks ‘sharp as Tax’ column in the ODT around Charitable Trusts to the meeting, which further underscores these changes. I’m convinced that in the interim, we need to find a way to finance the fences on High and Alva street ( part b) ourselves. While this affects everyone but the D Units with entrances off the common, I believe we all have to share these costs.
See you tomorrow
Regards,
Marianne
Marianne Quinn
Level 3, 115 Stuart Street, Dunedin
P.O. Box 20, Dunedin 9054
ph +6434773115 or 0211612050
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