New Tax Laws Concerning Donations

Updated 23 March 2009

Changes to New Zealand law with regard to registered charities and donations to these charities came into effect on 1 April 2008. This law affects all giving to charities, including tithes, offerings and other donations made at Papsda. On 5 March, Russell Jones from the North New Zealand Seventh-day Adventist Church Headquarters visited Papsda to further explain the implications for us and other local givers as these changes will have an impact on how tithes and offerings are given and received. The good news is that with these changes come significant opportunities to bless in the local church.

The main change is the availability of a 33.3% rebate against tax on all donations made to the church. This rebate replaces the limited tax rebate on donations previously available to individuals and other entities such as companies and trusts. Once refunded, the money can then be kept, or given again to a worthy cause: ie, the local church, evangelism or special projects.

To assist local churches to adjust to the new legislation, the North New Zealand Conference have made some the key changes that will affect the way we give at Papsda.

Identification of Donors
The new legislation requires a charity (in this case the Seventh-day Adventist Church) to provide a yearly report to each donor of the total given for the year. In addition, receipts can be requested by a donor at any time. With this in mind, a Donor ID is given to everyone who makes a donation so that a receipt can be provided at the end of the year. At Papsda, the Donor ID is the first two letters of the surname followed by the first 2 letters of the first name followed by the two-digit year of birth. For example, Joe Bloggs born in 1967 will have a donor ID of BLJO67.

Tithe Envelopes
The current Tithe and Offering envelopes have been redesigned and will be available early May. The new envelopes will also allow members to update their personal details. There will be space provided on the envelope to register your Donor ID number. Children can put their own name on the envelopes with a parent’s Donor ID number, thus enabling the parent to claim any rebate. The yearly reports will be produced based on the Donor ID number.

Online Giving System
An online giving system has been implemented through the Papsda website allowing individuals to contribute online. Please note the bank account number for all offerings and donations is: 12-3028-0537532-00.

If you have any questions, please do not hesitate to contact Virginia Pycroft at the church office.