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Business & Commercial

Charitable trust or incorporated society?

Different structures for different missions. We help Hawke's Bay community organisations choose and establish the right legal foundation.

Incorporated Societies: Re-register by 5 April 2026

All existing incorporated societies must re-register under the Incorporated Societies Act 2022 or be dissolved.

See requirements
The Decision

Which structure fits your mission?

Not-for-profits operate under different legal forms, each with distinct characteristics. The right choice depends on your organisation's purpose, membership, and activities.

"Community organisations are the backbone of Hawke's Bay. We help you get the legal foundations right so you can focus on your mission."

Paul Morgan, Consultant at Carlile Dowling
Paul Morgan, Consultant
Inc.
Society

Incorporated Societies

The most common structure for membership-based organisations - clubs, associations, and groups where members collectively pursue non-business purposes.

Key Features

  • Separate legal entity
  • Elected committee governance
  • Limited liability for members

Best For

  • - Sports clubs
  • - Community groups
  • - Professional associations
  • - Advocacy organisations
Charitable
Trust

Charitable Trusts

Trusts established for charitable purposes - education, relief of poverty, religion, or other purposes beneficial to the community.

Key Features

  • Governed by trustees (not members)
  • Tax exemption via Charities Services
  • Perpetual existence

Best For

  • - Philanthropic foundations
  • - Educational trusts
  • - Welfare organisations
  • - Religious organisations
Charitable
Company

Charitable Companies

Limited liability companies established for charitable purposes, with constitution restricting activities and prohibiting private benefit.

Key Features

  • Company governance framework
  • Board of directors
  • Commercial activities permitted

Best For

  • - Larger charities
  • - Social enterprises
  • - Commercial operations
Decision Helper

Incorporated Society vs Charitable Trust

The two most common structures for Hawke's Bay community organisations. Here's how they compare.

Incorporated Society

Governance Elected committee
Members Yes (min 10)
Tax Status Taxable (unless registered charity)
Registration Companies Office
Key Law Incorporated Societies Act

Choose if

Your members want voting rights and democratic control over the organisation.

Charitable Trust

Governance Appointed trustees
Members No (beneficiaries instead)
Tax Status Exempt if registered charity
Registration Charities Services
Key Law Trusts Act 2019

Choose if

You want trustees to have full control and the purpose is genuinely charitable.

Action Required

Incorporated Societies Act 2022 Re-registration

Deadline: 5 April 2026

The Incorporated Societies Act 2022 replaced the 1908 Act. All existing incorporated societies must re-register under the new Act by 5 April 2026. Societies that don't re-register will be removed from the register and dissolved.

What's Required

  • New constitution meeting 2022 Act requirements
  • Clear purpose statement
  • Specified officer duties
  • Disputes procedure
  • Member rights provisions

Key Changes in 2022 Act

  • Officer duties now codified
  • Minimum 10 members required
  • Conflicts of interest rules
  • Tiered financial reporting
Tax Benefits

Charities Services Registration

Benefits

Why Register

  • Tax exemption on charitable income
  • Credibility with donors and funders
  • Donee status - donors claim tax credits

Requirements

To Qualify

  • - Charitable purposes (education, poverty relief, religion, public benefit)
  • - Public benefit, not private benefit
  • - No profit distribution to members or controllers

Ongoing Obligations

Compliance

  • - Annual returns with financial statements
  • - Report changes to officers/rules
  • - Activities must remain charitable
  • - Risk deregistration if non-compliant
How We Help

Structure Setup

Getting Started

Helping you choose the right structure, preparing trust deeds or constitutions, and handling registrations with Companies Office and Charities Services.

Re-registration

April 2026 Deadline

Updating your constitution to meet the 2022 Act requirements and guiding you through the re-registration process before the deadline.

Governance Policies

Board Support

Drafting conflicts of interest policies, delegation frameworks, board charters, and meeting procedures - practical documents for volunteer governance.

Officer Duties

Legal Obligations

Advising committee members and trustees on their legal duties, personal liability risks, and how to meet their obligations properly.

Dispute Resolution

Member Conflicts

Helping navigate member disputes, disciplinary processes, and governance conflicts - keeping your organisation focused on its mission.

Client Observations

What Our Clients Say

"Prompt, friendly & efficient service"

Client

"I have always received excellent service from Carlile Dowling."

Repeat client

"A pleasure to work with."

Client

To ensure candour, all feedback was collected anonymously.

Common Questions

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Need help with your not-for-profit?

From reregistration to governance, we can assist.

Ready to get started?

We're here to help. Get in touch for clear, practical advice.

Let's talk about your situation

Every situation is unique. Get in touch to discuss how we can help.

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