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SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

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Political advocacy charity – Child Poverty Action Group Inc. – fails to file financial accounts

August 31, 2013 by SPCS Leave a Comment

Political advocacy group – Child Poverty Action Group Inc. [“CPAG”] – a registered charity (CC25387), and an incorporated society (No. 921414), is directed by Associate Professor Susan St John of the University of Auckland. [http://homes.eco.auckland.ac.nz/sstj003/] St John was appointed as an officer of CPAG on 5 June 2008 on the date the Society was granted charity status by the Charities Commission.

The NZ Herald reported yesterday that St John says CPAG was considering its next move in consultation with its lawyers, following a negative decision issued by the Court of Appeal against its challenge to the Government’s in-work tax credit, that claimed discrimination against beneficiaries. CPAG took the case to the Court of Appeal, which was heard in May 2013, after both The Human Rights Review Tribunal and the High Court ruled against it.

Who exactly are these CPAG lawyers? What fees have they been charging the charity to engage in political advocacy?

These questions are important as none of the financial accounts lodged by CPAG with the Charities Commission and/or Register of Incorporated Societies record any costs (or associated liabilities) incurred by it in legal action. CPAG remains in breach of the law having failed to file financial statements for the years 2005, 2006 and 2007 – the three years prior to it gaining charity status. As an incorporated society, CPAG is required by law – the Incorporated Societies Act 1908 – to do so. How could such a group with its financial accounts in such apparent disarray and continuing to remain in breach of the law, be granted charity status and continue to operate as a political lobby group/political advocacy group?

References:

NZ Herald. Story by Lucy Bennett. 30 August 2013

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11117118

www.charities.govt.nz

www.societies.govt.nz

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Filed Under: Political Advocacy Tagged With: Child Poverty Action Group, CPAG, political advocacy, registered charity, Susan St. John

Child Poverty Action Group Inc: Court of Appeal rules against this charity’s appeal.

August 31, 2013 by SPCS Leave a Comment

Child Poverty Action Group Inc., [“CPAG”] a registered charity (Charity No. CC25387) deeply committed to political advocacy, has had its appeal to the Court of Appeal to have the Working for Families package made available to beneficiaries, dismissed. The appeal was heard in May 2013. Wikipedia describes CPAG as a “political advocacy group for the abolition of poverty and social exclusion, led by senior University of Auckland economist Susan St John” [appointed CPAG officer 5/06/08].

In 2006 the Government enacted the Working for Families tax-credit scheme to offer financial support for struggling families. CPAG which was registered as a charity with the Charities Commission on the 5th of June 2008, alleged the scheme’s in-work tax credit discriminated against people who receive income-tested benefit, as those who already received benefits were ineligible.

On Thursday 18 May 2006 CPAG defeated a New Zealand Government appeal in the High Court that would have prevented it from taking “legal action against the Government’s Working for Families package.” CPAG decided to take legal action because it felt that the Working for Families package discriminated against the children of parents on benefits. [see ref. 1]

CPAG had a total gross income of $156,962 for the financial year ended 31 March 2012, including $100,000 received from the JR McKenzie Trust and $30,729 from donations. Its total expenses were $118,298 and from that $42,600 was paid out in wages for “administration” and $59,288 in wages to a “researcher”. The total wages $101,888 paid out to three people employed part-time and together working on average a total of 60 hours per week, plus ACC ($567 paid on behalf of employees); constitutes 65% of total gross income of the charity. If the “office administration” costs of $3,393 are added to these expenses, the figure increases to $67%.

The Office of Human Rights Proceedings (OHRP) represented CPAG in both the Human Rights Tribunal and the High Court cases relating to the  In-Work Tax Credit case.

As an incorporated society (No. 921414), registered as such on 13 August 1998 under the Incorporated Societies Act 1908; CPAG has failed to comply with the law and file Financial Statements for the years 2005, 2006 and 2007 with the Companies Office. Despite these serious breaches of the law, the Charities Commission registered the entity as a charity on 5th June 2008.

CPAG officers amended the entity’s constitution on 10 April 2008, shortly before it was registered as a charity with the Charities Commission. Nothing in the constitution empowers or authorises its officers to take legal action in a political advocacy role to challenge existing laws as part of its “charitable activities”.

References:

Ref 1. http://www.nzherald.co.nz/child-poverty-action-group/news/article.cfm?o_id=600551&objectid=10382423

2. www.societies.govt.nz

3. www.charities.govt.nz

4. Dominion Post, August 31, p. A3.

4. http://en.wikipedia.org/wiki/Child_Poverty_Action_Group_(Aotearoa_New_Zealand)

Further reading:

Poverty group’s appeal against tax credit dismissed.

By Lucy Bennett. 31 August 2013

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11117118

Child Poverty Action Group website:

http://www.cpag.org.nz/

http://www.cpag.org.nz/in-focus/cpag-in-the-court-of-appeal/

Child Poverty Action Group v Attorney-General: employment status discrimination

See: Links –

Tribunal Decision

http://www.nzlii.org/nz/cases/NZHC/2010/1568.html

High Court Decision

http://www.hrc.co.nz/office-of-human-rights-proceedings/part-1a-decisions 

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Filed Under: Political Advocacy Tagged With: Child Poverty Action Group, CPAG, political advocacy, registered charity, Susan St. John, Working For Families package

Child Poverty Action Group Inc and its political advocacy

May 26, 2012 by SPCS Leave a Comment

The Child Poverty Action Group Inc. (CPAG) was registered as a charity with the Charities Commission  on 5 June 2008 (Reg. No. CC25387). According to Wikipedia on-line, it “is a New Zealand political advocacy group for the abolition of poverty and social exclusion…. CPAG describes itself as ‘an independent charity working to eliminate child poverty in New Zealand through research, advocacy and education’. CPAG speaks out on behalf of tens of thousands of New Zealand’s poorest children…”

Records from the Charities Commission website show that CPAG had a gross income of $132,361 for the financial year ended 31 March 2011, and of that, $62,638 was spent on wages for one full-time employee and two other part-timers: involved in administration and research (47% of total income). In addition $1,033 of CPAG income was spent specifically on office administration and $486 to cover employees’ ACC Levies. 58 hours per week (average) in total of paid work, was funded by CPAG. In 2010/11 it received $105,000 in non-government grants and sponsorship, $16,757 in donations, and $2,660 in membership fees. (se www.charities.govt.nz).

CPAG – Aotearoa New Zealand has a clear focus on political advocacy, involving the promotion of “better policies [laws] for children and young persons – illustrated by the following activities…. [Read more…]

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Filed Under: Political Advocacy Tagged With: advocacy, Child Poverty Action Group, CPAG, political advocacy

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