CHARITIES in Tararua and around the country are being urged to apply now for registration under the new Charities Act, or risk losing their tax-exempt status.
Tararua Mayor Maureen Reynolds is urging all charitable groups in her region to apply immediately, as registration takes time and the act comes into force
on July 1 next year.
"While 12 months might seem a long time away, registration is a two-stage process involving about 90 work days," Ms Reynolds said.
"By registering, charities can ensure they remain eligible for exemptions from income tax, estate and gift duty."
The Charities Commission is advising organisations not to wait until their annual general meetings to apply.
The commission's communications and education manager, Sandra Bennett, has expressed concern at the slow pace of applications so far.
Of 25,000 or more organisations that would be eligible, about 450 are registered with the commission.
"If a flood of applications is received just before July 1, 2008, there could be some delays."
Ms Bennett said registration is not a rubber-stamp exercise.
"All applications are carefully considered and a legal test applied to ensure charitable purposes criteria are being met."
To be eligible, an organisation must be established and maintained for charitable purposes, defined as "advancing religion or education, the relief of poverty, or any other cause that is beneficial to the community".
If an organisation has independent "non-charitable" purposes, like advocacy for law change, it may not be considered to be a charitable organisation.
