Please submit on the Crown Entities Reform Bill 332-1 (2011) Part 3: Charities Act 2005

It’s not too late to send a letter calling for this process to be stalled, and Ministers haven’t heard people’s concerns about this. We understand Ministers are open to hearing our concerns.

Please consider sending a letter TODAY to appropriate Ministers address our collective concerns.

Volunteering New Zealand (VNZ) are in agreement with other community sector organisations in regards to the proposed disestablishment of the Charities Commission into the Department of Internal Affairs.

The plan is to disestablish the Charities Commission, and absorb the Commission into the Department of Internal Affairs - this is NOT in the best interests of New Zealand.

• The merger will likely lead to a loss of independence and transparency – both of which were fundamental to the establishment of the Commission in 2005
• Independence from government will be critical in ensuring that a review of the Charities Act 2005 meets the future needs of the Sector
• Any decisions about the future of the Charities Commission should be put on hold until after that review is complete
• At a recent major conference on charities four respected world experts on charity law agreed that the legislation puts New Zealand at risk of making a backward step
• The proposal is based on major errors of understanding in Government and especially in Cabinet:

1. Lack of understanding that charities are set up by ordinary New Zealanders to address an issue they see in their community. And that such goodwill and initiatives do not require the involvement of a government department
2. Most charities receive no direct funding from government, so their responsibility is to their members and their community – not government
3. DIAs involvement is likely to dampen initiatives in the community rather than encourage them
4. The proposed change is out of step with government’s own policy push around Better Public Services – it will instead lead to more bureaucracy and lower innovation

• Cost savings need to be made but the merger is unlikely to achieve the efficiency and savings that would make it worthwhile – at least not without severely reducing the ability to carry out what were the Commission’s core functions.
• There are alternative ways to reduce costs and improve efficiency without compromising the independence of the Commission.

VNZ's submission can be viewed here - feel free to use our content if you wish.