8. Question No. 8—Community and Voluntary SectorANGIE WARREN-CLARK (Labour) to the Minister for the Community and Voluntary SectorQuestion No. 8—Community and Voluntary Sector8. ANGIE WARREN-CLARK (Labour) to the Minister for the Community and Voluntary Sector: What recent announcements has she made about modernising the charities sector?Hon PRIYANCA RADHAKRISHNAN (Minister for the Community and Voluntary Sector): I recently announced that the Charities Amendment Bill passed its third reading. This legislation takes some important steps to modernise the charitable sector. For example it reduces the red tape that many charities face particularly small charities and it improves charities' access to justice and establishes new requirements for the Charities Registration Board and the chief executive of the Department of Internal Affairs to promote best-practice regulatory decision-making. The changes to the legislation were brought about by a review of the Act that recommended some practical changes that could be made to better support charities and to improve public trust and confidence in the sector. There are approximately 28000 registered charities in New Zealand and this Government recognises the important role they play and we want to ensure that our legislative settings are fit for purpose so that we can continue to back them in the great work they're doing to support our communities. Angie Warren-Clark: What are some of the ways the Charities Amendment Act supports smaller charities?Hon PRIYANCA RADHAKRISHNAN: The Charities Amendment Act 2023 makes it easier for smaller charities to comply with legal requirements. For example the Act empowers the chief executive of the Department of Internal Affairs to exempt very small charities for the not-for-profit reporting standard that's set by the External Reporting Board. Now that new reporting standard came into effect in 2015 and changed the landscape—made it quite difficult for small charities to be able to comply. I'm told by some very small charities that they even had to hire accountants just to meet their legal requirements and that was onerous. The Act also provides greater access to justice for charities by empowering the Taxation Review Authority to hear Charities Act first appeals rather than the High Court. This reduces the costs complexities and resources associated with taking appeals straight to the High Court. Charities will also have more time to lodge an appeal and can self-represent at the authority to avoid legal costs. So that's particularly beneficial for small charities.Angie Warren-Clark: How does the Act improve charities governance?Hon PRIYANCA RADHAKRISHNAN: In addition to reducing the regulatory burden on charities the new Act amends the definition of officer". Previously this was the source of a fair amount of confusion. The new definition will ensure everyone who has significant influence over the management and administration of a charity will be defined as an officer and therefore accountable for the running of the charity. The bill also requires charities to review their governance procedures at least once in three years. This will help ensure that charities are actively considering whether their resources are being used to meet their charitable purpose and whether their governance processes are up to date but that they aren't overly burdened with a compliance requirement.Angie Warren-Clark: Why are these changes important?Hon PRIYANCA RADHAKRISHNAN: Kiwis have been rated the second-most generous country in the world. Our charitable sector has an annual total income of over $21 billion and is supported by over 217000 volunteers. These organisations contribute in diverse areas. The charitable sector in Aotearoa New Zealand delivers an extraordinary contribution to communities across the country and they approximately contribute 1.7 million hours every week and more than 98000 people work full time in the sector. These changes recognise that important mahi and improve the ability of charities to operate effectively and efficiently while also ensuring public trust and confidence in the sector is strengthened."