27 February 2007

Charities welcome National Party tax announcement

The National Party’s announcement today that it would take away the cap on tax rebates is a positive step in a long running issue, Tangata Whenua and community and voluntary sector members said today.

Dave Henderson, National Coordinator of the Association of Non-Governmental Organisations of Aotearoa (ANGOA) says Sector members are pleased the National Party is putting the issue high on their agenda as it has taken almost a decade to get it on to politicians’ radar screens.

The Government is currently looking at changes to the tax rebate regime. A discussion document called Tax incentives for giving to charities and other
non-profit organisations was released last year. There were a large number of Sector submissions on that document with a clear message that the cap on the rebate for giving should be taken away.

The current cap is $1890 for individuals and 5 percent on company and Maori authority giving.

Other Sector members welcomed the announcement also.

Presbyterian Support Services New Zealand National Executive Officer Jo Lake says: “We have been working to get cross party support for the issue as it is one that affects all New Zealanders – whether they are ‘givers’, are active as volunteers, or are users of the many services and not-for-profit organisations that rely so heavily on philanthropy to make ends meet.”

Philanthropy New Zealand Executive Director Robyn Scott says: “New Zealand is trailing other comparative Commonwealth countries in promoting a culture of giving to the detriment of everyone in the community.

“Overseas experience shows that people give more when giving is made easy and they have a range of incentives to give.”

IHC New Zealand Inc Director of Advocacy Trish Grant says: “Tax is one of the ways that a Government can promote a culture of giving and generosity in the local community.

“We know that giving in New Zealand – whether it is philanthropic funding or donations – accounts for hundreds of millions of dollars of funding.”

Funding Information Service General Manager Kevin Haunui says: “Tangata Whenua and the community and voluntary sector rely heavily on multiple funding streams, including donations and philanthropic giving, to maintain the huge range of community services, from care for the elderly, to ambulances, and sport and recreation activities.”

Wendi Wicks, of DPA, the national assembly of people with disabilities says: “Sector members are really keen to see the significance of ‘giving’ recognised and political party policies reflect confidence in the philanthropic and community and voluntary sector organisations to effectively develop the services that local communities need.”

ENDS

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