Gloriavale’s revenue drops $12m in one year, assets top $46m

The trust behind the remote Gloriavale Christian Community took a $12 million revenue hit last year, but its net assets remain stable at $46m.

The West Coast religious community has come under fire in recent years after court findings of sexual and physical abuse, as well as employment law breaches.

Charities Services confirmed in May 2022 that it was investigating whether the Christian Church Community Trust – the tax-free registered charity behind the community – should keep its charitable status.

The investigation came after an Employment Court ruling that a group of former members were employees, not volunteers, when they worked in the community’s businesses, kitchens and laundries. A claim for $5m in lost wages and compensation is still before the court.

Yesterday, a Department of Internal Affairs spokesperson said the investigation was still open. “The matter is currently subject to our regulatory processes. Therefore, it is not appropriate for the department to make further comment at this time,” they said.

A similar investigation in 2015, which took 18 months, concluded trustees may have acted in a manner that constituted serious wrongdoing under the Charities Act, particularly when it came to issues like the handling of physical and sexual assault allegations and members wanting to leave the community.

However, Charities Services decided it was in the public interest for the trust to remain on the charities register, adding there was a high level of co-operation and genuine interest from the trustees to act in the best interests of the trust and the community.

The trust’s recently filed annual return for the year ending July 31, 2023, showed it had several “contingent liabilities”, including a case before the Human Rights Review Tribunal. It was also a defendant in a case yet to be heard alleging the trust’s assets are held on a constructive trust – where any claimant would have an interest in property held by the trust. The trust was also subject to a Court of Appeal application by BNZ to close its accounts after an interim injunction ordered the bank to keep the accounts open.

“In addition to the above there are other ongoing legal cases against the trust. On the basis of legal advice received, the trust was not able to reliably estimate the potential outcome and any costs associated with the cases,” the annual report says.

It says 20 volunteers worked 3750 hours for the trust, which posted a surplus of almost $800,000, down from $3.4m in 2022.

Revenue fell to $15.6m in 2023, from $25m in 2022. The trust spent $7.4m on education, compared to $11m in 2022.

The community’s early education centres were suspended for seven months due to “social pressures on the parents and maintenance works”, but had since been reinstated.

Gloriavale earned $223,000 from midwifery services and $600,000 in education grants. It spent $215,000 on its chief executive, Phil Jamieson, who was appointed in November 2022. There was a $7m drop in the sale of goods, from $21m in 2023 to $13m in 2022. It owned $8.5m worth of land and 100% shares in 11 limited companies including Alpine Health Manufacturing New Zealand Ltd, which made $114,000 in 2023, compared to $31,000 in 2022.

Canaan Farming Dairy was a large scale dairy farming operation with three milking platforms and sold almost 8 million litres of milk, compared to 8.8 million litres in 2022.

Forest Gold Honey’s revenue rose from $103,000 to $224,000 in 2023.

Christian Partners, an entity providing labour to the trust’s trading entities and the education centres, made $1.1m in 2023, compared to $664,000 the year before.

The Christian Sharing Account, which is used for members’ personal needs, took in $1m in 2023, compared to $462,000 in 2022.

The trust took part-ownership of Brunner Station, which it bought with the help of Christian Partners for $6.7m in 2019.

The report says work is under way on land improvements at the Brunner property and planning for the long-term use of the property for residential purposes.

The trust has made “solid progress” on its charitable objectives and significant efforts to improve its kitchen and laundry, it says. “The trust has understandably faced and is facing significant challenges stemming from external concerns primarily relating to historical issues within the Gloriavale community. It is hoped that in the coming year, some closure can be reached with all the stakeholders concerned.”

Jamieson said he and the trust had no comment on the report.