Accounting Specialists for the Not-for-Profit Sector
Registered charities and not-for-profit organisations in New Zealand operate under a unique set of financial reporting and compliance obligations and they deserve an accountant who truly understands those requirements. At Reliable, we have extensive experience working with charities, incorporated societies, and community organisations.
Unique Challenges for Charities
Charities face a different compliance landscape to commercial businesses. Financial reporting requirements under the Charities Act 2005, tiered reporting standards (from simple Tier 4 cash-based reports up to full Tier 1 PBE Standards), and the obligations around maintaining charitable registration all require specialist knowledge.
Our Charity Accounting Services Include
- Annual financial statements prepared to the correct reporting tier (Tier 1–4)
- Charities Register annual return filing with Charities Services
- GST compliance for charities (including zero-rating and exempt supply advice)
- PAYE and payroll for charity employees, plus advice on volunteer reimbursements and honoraria
- Grant acquittal reporting and financial summaries for funders
- Budgeting and cash flow forecasting for funding applications
- Advice on maintaining charitable status and reporting obligations
- Xero setup configured specifically for not-for-profit chart of accounts
- Treasurer support and committee financial reporting
Reporting Tiers Explained
Charities NZ requires financial reports prepared to one of four tiers based on your organisation’s size and public accountability:
- Tier 4 – annual operating payments under $140,000, no public accountability and cash accounting.
- Tier 3 – annual expenses under $5 million, no public accountability and accrual accounting.
- Tier 2 – annual expenses over $5 million and under $33 million, with no public accountability.
- Tier 1 – annual expenses over $33 million, or the charity has public accountability.
We assess which tier applies to your organisation and prepare compliant reports accordingly.
Does our charity need to file GST returns?
It depends on the nature of your activities and income. If your charity carries on a taxable activity and its taxable turnover is at least $60,000 in a 12-month period, or is expected to reach that amount in the next 12 months, GST registration is generally required. Some charity income may have different GST treatment, so we assess your income streams and advise accordingly.
What happens if we miss our Charities Register annual return?
Failing to file annual returns can put a charity’s registration at risk. Persistent failure to file may ultimately result in deregistration. We track filing deadlines for our charity clients to help reduce the risk of missed returns and compliance issues.
Can Reliable help us with grant reporting?
Yes we regularly prepare acquittal reports and financial summaries for funders including Community Trusts, local councils and government agencies. We understand what funders need to see and prepare reports to those standards.
Get Started Today
Free Consultation
No obligation. Let’s talk about what you need and how we can help your business.