Prized tax exemption denied to 500 groups
Sloppy paperwork, incomplete forms, and outright subterfuge are among the reasons hundreds of organisations have been barred from gaining charitable status.
Tough new laws have seen 527 groups rejected since 2014. They include national sports administrators such as New Zealand Cricket and Table Tennis NZ, a medieval re-enactment group and dozens of religious groups.
Some claim they were nominated in error, others admit they fell short of the required paperwork, as the Internal Affairs’ Charities Service proved it was far from charitable in dishing out the lucrative tax exempt status, an Official Information Act request revealed.
The hardline Westcity Bible Baptist Church was one of those blocked.
Pastor Logan Robertson, who once prayed a homosexual man would commit suicide, said he attached the entire Bible to his digital application.
‘‘I just copied and paste the whole thing. They didn’t like that.’’
Other religious groups denied charitable status included Christians for Israel, Breakthrough Fire Ministries, and the Church of the Flying Spaghetti Monster.
The latter’s marriage celebrant, Karen Martyn, said she was not aware of the failed application, but she supported the Charities Services’ tough stance.
‘‘The crackdown is a good thing because they have been eliminating people who are money launderers,’’ she said.
‘‘There are so many two-person churches out there – it’s just outrageous. We’re aware that having charitable status is not really a signifier of any moral stance. It just happened to be what you need to do for tax purposes. We don’t believe that religion should be an adequate reason.’’
In a reference to Sanitarium’s tax exemption, she said making Weet Bix Michelle Attwood’s Husky Rescue missed out. had nothing to do with improving society.
On the other hand, people running soup kitchens, or providing housing and mental health support were making a difference, she said.
NZ Cricket was rejected – but according to a spokesman, the application was made by a thirdparty IT supplier hoping for a discount on a Microsoft package.
‘‘We believed that they were only applying to (Microsoft) for pricing but it appears they also applied to the Charities Commission. This was a mistake on their part. To be able to apply for charitable status we would need to be established for purely charitable purposes – which we are not.’’
The Bay of Plenty Rugby Union and Table Tennis NZ were also turned down.
Husky Rescue NZ was denied on the grounds that its name was ‘‘misleading’’.
Founder Michelle Attwood said this was due to incomplete paperwork. She is preparing another try, this time with the help of lawyers.
‘‘All your wording has to be really on point.’’
Gaining charitable status was ‘‘incredibly important’’ as it would allow the group to apply for lottery and charitable funding.
Groups including the Pike River Memorial Scholarship Trust, Auckland Pride Festival Trust, and the Order of the Boar – which stages medieval battles – were also declined.
Among the reasons were failure to respond to requests for information, having a non-charitable purpose or not providing protection to prevent profit.
All of the entities had been given the chance to respond to Charities Services inquiries, but had failed to do so.
General manager Lesa Kalapu said the agency received applications from ‘‘an amazing variety’’ of groups.