Charitable Trusts
Structuring Your Giving for Long-Term Impact
A well-structured charitable trust can turn your generosity into a lasting, well-governed legacy. We help you design, establish, and register your charitable trust — so your giving achieves what you intend, for as long as you intend.
Why Set Up a Charitable Trust?
Whether you want to support your community, fund education, promote sport, or advance a cause you care about, a charitable trust provides a formal legal structure to make your giving effective, transparent, and sustainable over the long term.
A registered charitable trust can qualify for exemption from income tax and may be eligible for other benefits. But the legal requirements are specific — from the trust deed, to the charitable purpose test, to registration with the Department of Internal Affairs (formerly the Charities Commission), to ongoing annual filing obligations.
We handle the entire process for you — from drafting the trust deed and advising on charitable purposes, through to incorporation under the Charitable Trusts Act 1957 and registration with the Department of Internal Affairs.
Our Charitable Trust Setup Fee
$2,500 $1,500 incl GST
Includes trust deed drafting, incorporation, and guidance on Charities Commission registration.
What Makes a Purpose "Charitable"?
"Charitable purpose" has a specific legal meaning that is narrower than the everyday use of the word.
To qualify for registration, the rules or governing document of an organisation must clearly state that its purpose falls into one of these categories:
Relieve Poverty
Providing food, shelter, clothing, or financial assistance to people in need.
Advance Education
Teaching, training, research, scholarships, or educational resources for the community.
Advance Religion
Promoting religious belief, practice, or understanding within the community.
Otherwise Benefit the Community
A broad category that can include health, environment, arts, recreation, and other purposes that benefit the public.
Section 61A of the Charitable Trusts Act 1957 provides that it is charitable to provide (or help provide) facilities for recreation or other leisure time occupation, if the facilities are provided in the interests of social welfare and there is a public benefit. This includes providing land, buildings, and equipment, and extends to organising recreational activities.
"In the interests of social welfare" means the facilities must improve the conditions of life for the people for whom they are primarily intended, and either those people need those facilities because of their youth, age, infirmity, disability, poverty, race, occupation, or social or economic circumstances — or the facilities are available to all members of the public.
The Income Tax Act 2007 (CW 46) also provides a specific exemption for bodies promoting amateur games and sports, provided the game or sport is conducted for the recreation or entertainment of the general public and no funds are used for the private profit of any member.
Some examples of purposes that have been accepted for registration include:
- Establishing an athletic and recreation facility serving people with disabilities
- Providing recreational facilities for the community
- Improving the physical and psychological wellbeing of people who have had breast cancer through dragon boat racing
- Teaching ball-handling skills to school children
We can advise you on whether your intended purpose is likely to meet the legal test for charitable status.
How We Set Up Your Charitable Trust
1. Design
We discuss your goals, advise on the charitable purpose test, and design a trust structure that meets the legal requirements and achieves what you want.
2. Draft
We draft the trust deed — setting out the aims of the trust, how it will be run, who the trustees are, and how property is to be used for the charitable purpose.
3. Incorporate
We apply to the Registrar of Incorporated Societies to incorporate the trust as a charitable trust board under the Charitable Trusts Act 1957.
4. Register
We guide you through registration with the Department of Internal Affairs (Charities Services) to qualify for income tax exemptions and other benefits.
The trust deed must set out the aims of the trust and how it will be run. There must be a clear intention to devote property to a charitable purpose, the property must be clearly defined, and the purpose must be of a public nature — for the benefit of the community or a section of the community. The purpose must comply with the legal definition of "charitable" under the Act, or be religious or educational in character.
No trust may be incorporated under a name that is identical or almost identical to another board, company, or body corporate — unless consent is given. The Registrar must also be satisfied that the name is not contrary to public interest. We recommend checking existing names at the Companies Office before finalising your choice.
Officers of a charitable trust must meet certain eligibility requirements. They must not be an undischarged bankrupt, younger than 16, convicted of a crime of dishonesty and sentenced within the last seven years, disqualified by the Commission, subject to a property order under the Protection of Personal and Property Rights Act 1988, or prohibited from being a director under the Companies Act 1993 or related legislation.
Once registered, your charitable trust must file an Annual Return with Charities Services within six months of the balance date, and notify the Commission within three months if certain information about the organisation changes. Any alteration to the rules or trust deed must be notified to the Registrar of Incorporated Societies within one month. We can help you stay compliant.
Charitable Giving Without a Separate Trust
You don't always need a standalone charitable trust to structure your giving.
If you already have a family trust — or are setting one up — you can include charitable provisions within it. Our multi-generational trust includes a class of charitable beneficiaries (Class F), which allows your trustees to make distributions to registered charities in New Zealand, guided by your memorandum of wishes.
This approach lets you combine family asset protection with structured charitable giving — all within a single trust — without the cost and compliance requirements of a separate registered charity.
Standalone Charitable Trust
A separate legal entity, registered with Charities Services, with its own trust deed, trustees, and annual filing obligations. Best for larger-scale or publicly-facing charitable activities.
$1,500 incl GST
Charitable Provisions in Your Family Trust
Charitable beneficiary classes built into your existing family or multi-generational trust. Simpler to set up and maintain, guided by your memorandum of wishes.
Included in multi-generational trust plans
Ready to structure your charitable giving?
Whether you need a standalone charitable trust or charitable provisions within your family trust, we can help you design the right structure.
Request Your Free Quote Send Me Further Information
Questions? Call us on +64 9 415 0099 or email reception@rossholmes.co.nz
Related Topics
Trust-Based Estate Plans
Protect your family and structure your giving within a single plan.
Types of Trusts
Multi-generational trusts include charitable beneficiary provisions.
Memorandum of Wishes
Guide your trustees on which charities to support and how.
Reviewing Your Trust
Add charitable provisions to an existing trust through a variation.