How to create a charitable trust in New Zealand.
A plain-language walkthrough of the six steps to establish a trust under the Trusts Act 2019, Charities Act 2005 and Charitable Trusts Act 1957.
1. Define your kaupapa
Clarify your charitable purpose — it must fall within one of the four heads of charity: education, relief of poverty, advancement of religion, or other purposes beneficial to the community.
2. Appoint your trustees
You need at least two trustees (three or more recommended). Each must be 18+, mentally capable, and not disqualified under the Charities Act 2005 s16.
3. Draft the trust deed
Prepare a written trust deed setting out purpose, powers, trustee appointment/removal, meeting rules, wind-up clause, and non-profit / non-distribution provisions.
4. Incorporate as a Charitable Trust Board
Optional but recommended: incorporate under the Charitable Trusts Act 1957 via the Companies Office to gain legal personality and limited liability.
5. Register with Charities Services
Apply through the Department of Internal Affairs (charities.govt.nz) to become a registered charity. This unlocks tax exemptions and donee status.
6. IRD & operational setup
Register with IRD for an IRD number, apply for donee organisation status (donation tax credits for supporters), and open a dedicated bank account. File annual returns to Charities Services.
What your trust deed must include.
- Name and registered address of the trust
- Charitable purpose (one of the four heads of charity)
- Powers of the trustees
- Appointment, removal and replacement of trustees
- Meeting quorum, voting and minute-keeping rules
- Non-distribution clause — no private pecuniary benefit
- Financial year, banking and audit provisions
- Wind-up clause — assets transfer to another registered charity
- Amendment clause consistent with charitable purpose