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Setting Up a Charitable Trust in New Zealand

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Our Organisational Advisor, has put together this checklist. If you need help along the way, get in touch.

 

Step 1: Confirm a Charitable Trust is the Right Structure

Before proceeding, consider whether a charitable trust suits your needs. It’s best when:

  • You have a clear charitable purpose (education, poverty relief, religion, or community benefit)
  • You want a formal, perpetual structure
  • You may seek tax exemption and/or registered charity status

 

Other options include an incorporated society or a charitable company — a lawyer can help you decide.

 

 

Step 2: Define Your Charitable Purpose

Your trust deed must have a charitable purpose. In NZ, this means:

  • Relief of poverty
  • Advancement of education
  • Advancement of religion
  • Any other purpose beneficial to the community

 

The purpose must be clear, specific, and genuinely charitable — not for private profit.

 

 

Step 3: Choose Your Trustees
  • You need a minimum of 2 trustees (3–5 is common practice)
  • Trustees must be 18+, not bankrupt, and not disqualified under the Trusts Act 2019
  • They are legally responsible for running the trust in accordance with the deed
  • Consider skills, availability, and commitment when selecting trustees

 

 

Step 4: Draft a Trust Deed

The trust deed is the founding legal document. It should include:

  • Name of the trust
  • Charitable purpose(s)
  • Names of the trustees (and any appointing body)
  • Powers and duties of trustees
  • Rules around meetings, voting, and decision-making
  • What happens to assets if the trust is wound up (must go to another charity)
  • Any conflict of interest provisions

 

Sample Charitable Trust Deed and Guide 

Download the Charitable Trust Sample Deed for New Foundations here 

 

 

Step 5: Execute (Sign) the Trust Deed
  • All trustees must sign the deed in the presence of a witness
  • The deed may need to be dated and witnessed correctly to be legally valid
  • Keep the original deed in a safe place — you’ll need it for registration

 

 

Step 6: Register Under the Charitable Trusts Act 1957 

Registering under the Charitable Trusts Act 1957 gives the trust legal personality (it can hold property, sue and be sued in its own name).

  • Apply to the New Zealand Companies Office via companiesoffice.govt.nz
  • Submit the trust deed and an application form
  • Pay the registration fee (currently around $50–$70 — confirm current fee on the Companies Office website)
  • Once registered, the trust gets a registration number

 

 

Step 7: Apply for Charitable Status with Charities Services

To get tax benefits and public credibility, register with Charities Services (part of the Department of Internal Affairs):

  1. Go to charities.govt.nz
  2. Create an account and complete the online application
  3. Provide your trust deed, officer details, and a description of your activities
  4. Charities Services will assess whether your purpose qualifies
  5. If approved, you’ll be listed on the Charities Register and receive a charity registration number
  6. Please note this is currently taking 20 weeks processing time
 
 
 
Before you register you will need to hold your first meeting: 
 
Resolutions for the First Trustees’ Meeting

 

Administrative & Constitutional
  • Confirm the trust deed — formally acknowledge the deed has been executed and is the governing document
  • Accept appointment as trustees — each trustee formally accepts their role and acknowledges their duties under the Trusts Act 2019
  • Elect a chairperson (and deputy if required)
  • Appoint a secretary and/or treasurer if these are separate roles

 

Banking & Finance
  • Open a bank account — authorise the opening of a bank account in the trust’s name and specify who are the authorised signatories
  • Set signing authority — e.g. any two trustees, or trustee + secretary, for transactions above/below certain thresholds

 

Registration
  • Resolve to apply for registration as a charity with Charities Services (if seeking charitable registration under the Charities Act 2005)
  • Resolve to apply for a New Zealand Business Number (NZBN) if not already incorporated
  • Resolve to apply for IRD number — needed for tax purposes and before opening a bank account

 

Governance
  • Adopt a conflicts of interest policy — required under the Trusts Act 2019 and good practice; trustees must declare conflicts
  • Adopt a meeting schedule — agree on frequency of meetings and quorum requirements
 
 
If you need any help with this, get in touch with our Organisational Advisor, who is available to provide free, tailored advice and support along the way.
Organisational Advisor
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