12. SANDRA GOUDIE (National—Coromandel) Link to this
to the Minister for the Community and Voluntary Sector
Is she satisfied with the Charities Commission’s process to register a charity; if so, why?
Hon RUTH DYSON (Minister for the Community and Voluntary Sector) Link to this
No. I have advised the chair of the Charities Commission that I expect to see a significant reduction in processing times from those currently being achieved, and in the size of the backlog of applications. I expect all complete applications for registrations that are received by the commission on or before 30 June of this year to be processed by the end of the year, and their charitable status to be backdated to 1 July.
Why had the Charities Commission registered only 2,920 charities as at the end of February 2008—over 5,000 applications are currently waiting to be registered—when it had expected to complete 25,000 by now, and does that not prove that progress to date is woefully inadequate?
I completely agree, and that is why I answered the primary question in the way I did. I am satisfied that measures are in place to improve the performance, and the member can have my assurance that they are being very closely monitored.
How can the Minister guarantee the tax-exempt status of the more than 5,000 applications currently waiting to be registered, when the registration process is reported to take around 140 days; and what will she do to ensure that legitimate not-for-profit charities are not suddenly landed with a tax bill?
I have two points in answer to the member’s question. First, her estimation of the processing time is a little exaggerated, but I still share the primary concern that she has expressed in her question, and I give this House an assurance that any applications that are received prior to 30 June of this year will be processed by the end of the year—that is my expectation—and, second, that the charitable status of those organisations will be backdated to 1 July.
Is the process taking so long because the Charities Commission is spending so much time “weeding out” groups that use their tax-free funds for what the Minister wants to stop—that is, supposed political lobbying?
No, that is incorrect. My understanding is that very few organisations have become embroiled in the dispute about what their primary purpose is and what role advocacy plays in their activity. The legislation, and I personally, strongly support the right of organisations to be both charitable and have advocacy functions, but advocacy cannot be their primary purpose; it can be only part of their activity, to back up their primary purpose, which is to be charitable.
Russell FairbrotherHaving a Charities Register is an important step towards protecting the reputation of charities and bolstering public trust. A Charities Register will provide consistent and detailed information about registered charities and the way they use resources. Members of the public will be able to search for information held on the register—for example, the name and address of a particular registered charity.
How long will it take to register all of the applications if the estimated 25,000-plus charities apply for registration, and does she believe that, as one accountant calculated, with 41.2 applications being processed a week, it will take four decades?