Background

The Government has opened consultation on the taxation of charity and not-for-profit entities. Why this matters to our charitable, not-for-profit sector:

• If your charity runs a small business (like a shop or a café), you might have to start paying tax on its income
• If your charity gets big donations from a single person, there might be new rules on how that money is managed
• If you’re a small not-for-profit, tax reporting might be simplified or you may need to check if you should be paying tax
• If your charity provides perks to employees, there might be changes to tax rules

Consultation closes on 31 March 2025 and we urge all leaders of charitable organisations to research what is being proposed and make a submission - numbers of submissions count. We have added resources to Mīharo (in the Advocacy chat) and link to a webinar ParryField Lawyers are hosting.

Our Position

MA's submission seeks to maintain the current tax-exempt status for museums and galleries, with a clear definition that revenue-generating activities directly supporting the charitable purpose remain tax-free. The proposed changes are unnecessary and potentially harmful.

Read our Final Submission here

Links

Inland Revenue Consultation Page

IR Issues (Consultation) Paper

Questions and Answers Taxation and the not-for-profit sector