How does my charitable organisation qualify for a tax exemption?

If an incorporated society or charitable trust benefits the community in a charitable way and meets certain criteria outlined by Inland Revenue, they may be granted a non-profit tax exemption.

There are generally three main conditions that a charitable organisation must meet in order to qualify for an exemption:

• The organisation’s aims and activities must be exclusively charitable
• None of the organisation’s income or funds may be used (or be available for use) to benefit any of its members, trustees or associates
• From 1 July 2008 charitable organisations must be registered with the Charities Commission

For more information on tax exemptions for charitable organisations visit the Inland Revenue website.