Churches are spending hundreds of thousands of dollars to comply with a new crackdown on charities’ financial reporting standards.
Charities who spend more than $1m per year are being forced to open up their books, in some cases for the first time, under new laws which came into effect this month.
The Charities Service say the new laws will bring greater transparency in the sector, but churches say they are having to spend up to $100,000 on auditing fees.
CHARITABLE STATUS
* For charities with an annual expenditure of $1m or more: Financial statements must be audited by a qualified accountant
* If spending is between $500,000 and $1 million: Financial statements must be reviewed by a qualified accountant
* Less than $500,000: Can choose to have their financial statements reviewed or audited.
* NZ’s registered charities receive about $1.2b each year in donations.
Source