Press Release: Hayes Knight NZ Scoop News 26 April 2012
Is The Definition Of Charitable Purpose Relevant To New Zealand Society In 2012?
The Charities Commission hosted a forum to specifically explore the appropriateness of the existing definition of “charitable purpose” in New Zealand. This two day event was held in Wellington on 17 and 18 April 2012. Those selected to attend represented a cross section of people involved in the sector; all leaders in their respective areas.
Hayes Knight Audit Director Craig Fisher was invited to the forum as a panel presenter.
Below is an extract from the paper he presented.
For Full Paper see: http://www.scoop.co.nz/stories/BU1204/S00806/is-the-definition-of-charitable-purpose-relevant-to-nz.htm
The issue of advocacy
This has been the source of much contentious, and sometimes what appears to be sensational and erroneous, media regarding decisions of the Charities Commission arising from the legal cases taken.
Political advocacy as a primary purpose is not currently considered charitable. This is especially the case when it comes to political parties which are not and should not be considered charitable. This is sound logic.
However like the business related examples already mentioned, many forms of advocacy can be for the public good. I act for a number of similar organisations which involve advocacy some of which are considered charitable and some not, so I don’t believe that the Charities Commission have necessarily made all correct decisions so far. That said, I suspect this will change as the Charities Commission evolves and becomes more sophisticated.
Among our client base is Greenpeace and I have often asked people if they think of Greenpeace as charitable? The majority say something along the lines of: while we may not always support their methods they do seem to be trying to save the planet, so yes. In fact the ratio used to be about 9/10 would consider them to be charitable. Interestingly that number has dropped back a bit in recent times as Greenpeace has stepped up their activity levels within New Zealand, particularly in areas that perhaps butt up more directly against New Zealand business vs. more remote issues such as saving the whales. Yet the majority still see them as being charitable. So have we got it wrong regarding advocacy?
In summary, advocacy, and the freedom of speech, is an essential ingredient in a democratic society. Advocacy is how positive change occurs in a democratic society. It is based on value judgments, but these change over time. Advocacy helps promote good public debate. Hence I believe it is important that we somehow work out how to accommodate and support an environment that allows advocacy and healthy debate to thrive in New Zealand even if it is not considered a charitable purpose.
About the Author
Craig Fisher FCA is Chairman and Audit Director at Hayes Knight Chartered Accountants, and a specialist regarding NFP and charitable entity issues.
ENDS
Reference: Hayes Knight News 26 April 2012
Is The Definition Of Charitable Purpose Relevant To New Zealand Society In 2012?
By Craig Fisher
http://hayesknight.co.nz/home/news/news-items/2012/4/26/is-the-definition-of-charitable-purpose-relevant-to-nz-society-in-2012.aspx
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