Last year’s annual return had a new question for charities

All registered charities are required to file an annual return within six months of their balance date. This return shows that they are still operating and meeting their legal obligations – and is also an opportunity to ensure that the information held with the Charities Register is up to date.

In last year’s annual return, charities would have noticed a new format to the return, which included the question, “Has your charitable trust reviewed its governance procedures within the last three years?”. Some charities might have been confident and answered “yes”, but for many, the answer would have been “no”.

Charities must review their governance procedures by October 2026

It has been a requirement for all charities to formally review their governance procedures every three years since a legislative change that took effect from October 2023. This means every charity needs to have reviewed its governance procedures by October 2026. Those reviews should then occur at least every three years after that.

A governance review is self-directed and will be different for every charity. It helps ensure that the charity meets legal obligations and is fulfilling its charitable purpose. It may help identify areas of improvement, provide clarity to roles and manage areas of risk. A governance review is an opportunity for a Board to strengthen what is being done well and adapt where necessary.

There is no mandated format for a governance review – it’s a case of what best suits each charity. Members should keep a record of the review and any actions agreed.  

Some tools to help with your governance review

If you’re involved in completion of a governance review, there are tools available:   

• The Charities Services has a user-friendly checklist with links to more information.
•  NZ Navigator is a free online self-assessment tool to help identify your charity’s strengths and weaknesses.
•  Tick for Governance is an online course that will help you learn and be recognized for good governance skills and practices. 

Additionally, our business advisors are here to help you navigate the intricacies of your annual return and assist with a governance review. Book an appointment with your local advisor today!