Back to Making Tax Simpler
Implementing the change for PAYE Information

What issues might the not-for-profit sector face?

8,900 registered charities are employers, employing 186,000 staff.

48% of registered charities have less than 5 employees.

The not-for-profit sector is made up of many organisations exempt from income tax, including charities and sports clubs. They range from very small to large organisations.

Question

Are there additional issues beyond those identified for small and medium organisations and those with very simple payrolls that need to be considered when thinking about how the proposed new PAYE services would work for not-for-profit organisations?

Comments

Software training contractor
Including donated time as a tax deductible expense might help kick things along for some not-for-profits. Loads of lawyers do pro-bono work (yes that is a compliment to the profession!) and allowing book-keepers or tax agents to help these organisations can only be good for the fabric of society.

Do you agree with this comment?

  • agree1
  • disagree5
8 months ago
Lyn
Peoples freedom of choice - yes businesses need to be efficient. But businesses should not be held to ransom by technology and software companies - and Inland Revenue should not be seen to be pushing this!

Do you agree with this comment?

  • agree2
  • disagree4
8 months ago
Carol
We use a payroll system that I can create and upload monthly reports to IRD for PAYE Kiwi Saver etc. This takes the hassle out of monthly returns. I have used manual systems in the past so can compare this. This type of payroll system does cost and could be a barrier to small non-profit orgs or business.

Do you agree with this comment?

  • agree2
  • disagree4
8 months ago
Andrea
Charities and clubs I have been involved with vary. A charity, although income tax exempt, is still required to be registered and pay GST and PAYE taxes where applicable. I worked for a charity that was a large employer - I cannot think that the changes being discussed would in any way affect the way they did business - a software upgrade only. However, a small club with one employee is not likely to have spare cash to go electronic - they collect fees from members and probably grants from funders, as well as sponsorship.

Do you agree with this comment?

  • agree4
  • disagree4
8 months ago
Rebecca
Consider Simplicity - in lots of small NGOs, the finance/payroll work is carried out by a volunteer working in their spare time. They often have to nut things out by themselves so the more straightforward you can make things/systems/access, the better for that lone volunteer who is doing their very best but often without much direct support in their role as no-one else in the organisation can perform the tasks. Small NGOs don't have funds to purchase much outside assistance eg accountants.

Do you agree with this comment?

  • agree3
  • disagree3
8 months ago
Bernadette
For many, every dollar spent is hard earned through volunteer hours and fundraising efforts. To force a software cost on them is unfair.

Do you agree with this comment?

  • agree2
  • disagree4
8 months ago
Common Sense
Funds of NGOs being used to meet increased compliance costs (as a result of any changes forced on them by IRD and the Government) rather than for the purpose for which they were provided. This will result in much less social assistance being provided to those who really need it

Do you agree with this comment?

  • agree1
  • disagree5
8 months ago
Suzanne Ashton
No additional burden should be placed on Registered Charities/Not for Profit organisations, times are difficult enough for this sector. A voluntary Secretary/Treasurer/Bookkeeper/Accountant's time is a precious and finite resource.

Do you agree with this comment?

  • agree1
  • disagree5
7 months ago
Antje
How about IRD providing a free basic accounting system that meets the requirements for small and maybe medium sized organisations and has the submission feature built in?

Do you agree with this comment?

  • agree2
  • disagree4
7 months ago
Mario Becroft
The biggest thing you could do to help small not-for-profit organisations is simplify, simplify, simplify. If possible, simplify the tax code. Then, provide streamlined online tools that make it trivially easy to enter, compute and file payroll information directly to the IRD without the need for costly software or intermediaries.

Do you agree with this comment?

  • agree2
  • disagree3
6 months ago
Scroll To Top