Community sector falls victim to Govt's economic mismanagement

The postponement of the Government's review of the definition of charitable purpose in the Charities Act is yet another blow to the community and voluntary sector, the Green Party said today.

This is a reversal of a 2010 Cabinet decision to begin a review in 2013, to be completed in 2015.

"The community sector is being forced to suffer because of the Government's economic mismanagement," said Green Party community and voluntary sector spokesperson Denise Roche.

"The Government has postponed the review of the Charities Act as they say an increase in the number of registered charities might lessen their tax revenue, however it is likely that the review would weed out some significant commercial enterprises that are currently registered as charities and channel tax benefits into private hands.

"By postponing the Charities Act review, the Government is ignoring the vital role the community sector plays in the lives of people across New Zealand.

"I have a Member's Bill drafted that would amend the Charities Act to allow organisations who advocate for the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community, as one of their key roles, to be registered as charitable organisations.

"I look forward to discussions with the community and voluntary sector about my Member's Bill to see how we can assist their crucial work helping communities and individuals across New Zealand.

"Unlike the Green Party, the Government clearly has no interest in working constructively with the community and voluntary sector."