This advocacy article was prepared by Bloomsbury Associates and is being published by the New Zealand Herald as advertorial.

New Zealand’s charitable sector is facing a perfect storm – rising demand for essential services, stretched public funding, and a need to do more with less. But amid these challenges lies a significant opportunity.

Strategic philanthropy has the potential to play a pivotal role in addressing some of the country’s most pressing social needs.

At Bloomsbury Associates, we’ve worked closely with philanthropic clients who are deeply committed to building stronger communities. But we’ve also seen first-hand the structural barriers in our tax system that limit their ability to give more, and give smarter.

Our white paper explores two simple, fiscally responsible changes to the current donation tax credit regime that could dramatically increase philanthropic giving in New Zealand.

First, we propose raising the donation tax credit from 33.33 cents to 50 cents for every dollar donated.

This would send a clear signal from Government that private giving is a valued and integral part of New Zealand’s social infrastructure. Based on well-established economic modelling, we estimate that this single change could lift charitable donations by 37% to 73% – yielding between $1.05 and $1.37 in new donations for every extra dollar of forgone tax revenue. It’s not only good for society – it’s financially sound policy.

Second, we recommend allowing donation tax credits to be carried forward across tax years.

Under the current system, donors cannot claim credits for donations that exceed their annual taxable income. This discourages large, one-off gifts which are often the most impactful kind. By enabling unused credits to roll over, the system would better accommodate high-net-worth donors, business owners, and retirees who wish to make meaningful contributions in line with their financial circumstances.

We believe these reforms wouldn’t just increase giving, they’d change how New Zealand thinks about philanthropy. They would empower more strategic, long-term investment in the social sector, and reduce charities’ over-reliance on government grants. More importantly, they would help embed a culture of giving that recognises the mutual responsibility of government, business, and community to drive social progress.

Giving, of course, is never just about tax benefits. For many of our clients, it’s about legacy, impact, and shared values. But a modern tax system should support – not hinder – those instincts. It should provide the tools for donors to act boldly when their support is needed most.

Now is the moment to align public policy with private generosity. With thoughtful reform, we can unleash a wave of giving that supports vital services, strengthens civil society, and builds a more resilient Aotearoa.

At Bloomsbury Associates, we believe philanthropy is one of the most powerful expressions of leadership. With the right settings in place, more New Zealanders can rise to that opportunity.

Learn more: Bloomsbury.co.nz