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New Zealand has no idea what charities are doing with their money nor whether they actually make a difference, says Dr Michael Gousmett, a member of the Australian Charity Law Association.
As reported by Stuff, Gousmett says New Zealand Charities are not required by law to give a percentage of their surplus to the public benefit.
“We have no idea what charities are doing with their own money or what they do that actually makes a difference.
“It could be anybody’s guess as there is no accountability,” Gousmett said.
Gousmett’s comments came after it was discovered that St George’s Hospital, Merivale, Christchurch, which operates as a charity, returned just 1.5% of its $6.5m surplus to charitable causes.
“In New Zealand there is a public expectation that if it is a charity it will be charitable but there is no accountability or regulation. It is not good enough. We need to raise the standards as we are way behind,” Gousmett said.
However Community and Voluntary Sector Minister Jo Goodhew did not agree with Dr Gousmett.
“I believe it is vitally important for the public to have trust and confidence in the charity and not-for-profit sector that the money they donate is used as far as possible for charitable purposes.”
Registered charities account publicly for their income by making their financial information available on the charities register, Goodhew said.
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