Submission to Charities Amendment Bill - 09 Dec 2022

Summary: 

1. Overall, The Salvation Army opposes the passing of this Bill into law. There are some aspects of the Bill that we do support which are discussed below. However, after this extremely drawn-out process that began back in 2018 to review the Charities Act 2005, the Bill that has subsequently emerged does not in our view effectively work to enable the charities sector to get on with their critical work in civil society to serve and support their local communities. There are significant gaps and uncertainties in the Bill, particularly in the following proposed areas: the stark absence of an independent first principles review; the appeals process; the charitable purposes reviews; financial reporting requirements; officers; reserves policy; and governance of charities. This submission unpacks our views and objections to this Bill further. 
2. The Salvation Army supports the tone and intent of this Bill. Since 2018, we have consistently engaged with this Review process. On the face of it, many of the submissions we have made have in one way, shape or form been included or considered in this current Bill. However, upon closer inspection, there is much in this Bill that does not modernise the principal Act in a way that is truly helpful to the charities sector. The Salvation Army is a large Tier One charity in New Zealand. In the Charities Register, we are registered under The Salvation Army Group which consists of four members - The Booth College of Mission Foundation Fund, The Edmund and Maud Sanderson Jeff Charitable Trust, The Salvation Army New Zealand, and The Salvation Army New Zealand Trust. Because of our size, we can often better absorb and withstand many of the political, regulatory, and financial challenges that impact smaller charities. Consequently, it would be easy for us to support this Bill in its current form as the effects of it are not significant to us directly. However, our submission is also based on The Salvation Army being a part of the wider charities, not-for-profit sector and so we are commenting on the weaknesses of this Bill as a part of this sector. We are blessed to a part of this sector and do not want to be self-seeking in any submission we make. Subsequently, from this perspective, we have opted to oppose the passing of this Bill in its current form. 

 

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