Articles

National bodies and local groups in New Zealand

Did you know many national bodies and local groups choose to work together to make their services more accessible? Local organisations and national bodies often operate in synergy and depend on each other to meet their common objectives and deliver activities to the public. In the non-profit sector, where financial resources are sometimes difficult to come by, this arrangement is mutually beneficial and allows local organisations to effectively run programs.

What are Māori Land Trusts in New Zealand?

Māori land trusts are like other types of trusts but are specifically designed to hold Māori land and manage activities that take place there. Both the Māori Land Court, Te Kooti Whenua Māori, and the Māori Appellate Court, Te Kooti Pira Māori, oversee Māori land matters related to trusts based on the Māori Land Act and other New Zealand laws. These matters including obtaining and maintaining trust status, providing guidance on ownership such as restrictions on transferring shares, and overseeing land management and use to ensure organisations are run according to their purpose.

What is an Industrial and Provident Society in New Zealand?

An Industrial and Provident Society (IPS) consists of a group of small business owners who come together to become part of a larger entity for mutual benefit while continuing to operate independently. Group members of an IPS can carry on activities in any industry, business or trade except banking. They must operate according to the purpose and written rules and apply to the Registrar of Industrial and Provident Societies to receive their status.

What is a Limited Liability Company in New Zealand?

A limited liability company (LLC) is the most often used legal structure for companies in Aotearoa New Zealand. Less common forms are unlimited and co-operative companies. It has the advantage of limiting the liability of shareholders, with the exception of any money they owe on their shares or they personal guarantees they have made to lenders or creditors through the activities of the company. LLCs are incorporated entities and are therefore regulated by the NZ Companies Office under the Companies Act 1993.

Navigating NFP Mergers: A Transfer of Business or Control

Mergers between not-for-profit (NFP) organisations are becoming increasingly common due to the current challenging economic and regulatory landscape. For some, it can provide an opportunity to better serve communities. For others, it’s the sole option for survival. Structuring a merger to suit the needs of the organisation is paramount. Merger implementation can have significant consequences for the entities involved, such as tax or funding implications. This article explores what a NFP merger is, the most common options to structure a merger and some tips and tricks to set your merger up for success.

What Are Incorporated Societies in New Zealand?

Incorporated societies are the most common form of non-profit organisations in the Aotearoa New Zealand not-for-profit sector. The category represents groups working in industries such as culture and recreation, education and research, health, social services, environmental services, development and housing, legal and political advocacy, religion, international development, grant making and voluntarism, and business and professional associations and unions1. Non-profits with an incorporated society’s structure are membership-based organisations, which means their members have control over the direction of the organisation and are often involved in its operation.

What Are Unincorporated Groups (Unincorporated Societies)?

In New Zealand Aotearoa, unincorporated societies make up the largest proportion of not-for-profit organisations, 61% in total. Almost all nonprofit groups begin as unincorporated and over time, many develop a more organised structure and set of rules or policies to better manage their operations. Small groups often make up the bulk of unincorporated groups and must decide if they want to keep things more informal. Keeping an organisation informal is often due to a lack of financial resources, little time, or a perception that rules are not needed to accomplish the objectives of the group members

What are Trusts in New Zealand?

A trust is an entity that holds money or property for the benefit of its beneficiaries or for law purposes. Estates are a person’s assets after they have died. Both trusts and estates are taxed on the income they generate. – Inland Revenue Te Tari Taake In 2021, there were between 300,000 to 500,000 trusts in Aotearoa New Zealand. The legal structure is often used by organisations in the non-profit sector, set up as a charitable trust when assets are intended for charitable purposes like education.

What is a Charitable Trust Board?

A charitable trust board is a group of trustees in charge of the governance for a non-profit with a charitable purpose. A trust is one of several legal structures available to non-profit organisations in New Zealand and offers both benefits and limitations. Charitable trusts are both a charity and a trust and are assigned a legal identity once registered, meaning that they can enter into contracts and agreements with other individuals and entities.

Strategy – Is it really that difficult?

In recent years, serious concerns have been raised by governance experts and public inquiries over the amount of time spent by NFP boards monitoring the day-to-day operations of their organisations at the expense of driving long-term strategy.1 There are a number of reasons directors may have felt constrained to a short-term outlook, including their organisations being under-resourced, heavily reliant on grants and donations and staffed by volunteers and employees of varying levels of experience.