News Item

The 2019 New Zealand Law Foundation International Research Fellowship Te Karahipi Rangahau a Taiao awarded to Wellington Barrister, Sue Barker, was dedicated to the question “What does a world-leading framework of charities law look like?” with the final report, entitled “Focus on purpose”, being released today.

The report makes 70 recommendations, including that the review of the Charities Act is transferred to an independent body, such as the New Zealand Law Commission, for an independent, first principles (and ideally multi-disciplinary) review taking into account the wider legal framework applicable to charities.

“Ultimately it comes down to the type of society we want to live in – it is very important that we get this right,” said the report’s author, Sue Barker.

Research indicates that 90% of the world’s population is now living in countries rated as closed, repressed or obstructed: the conflict in Ukraine is being described as the crucible of a new world order. In the face of the forces of autocracy, the important role that charities play in upholding liberal democratic values should not be underestimated: if we care about human rights, climate change, social cohesion, rising inequality, public interest journalism, affordable housing, the rule of law, even democracy itself, it is essential that we get the legal framework for charities right.

Yet, to paraphrase one of the world’s most prolific and influential scholars in this area, Dr Lester Salamon, the charitable sector is an “invisible subcontinent”, poorly understood by policymakers and the public at large, encumbered by unnecessary regulatory limitations, and inadequately utilised as a mechanism for addressing public problems.

The report represents the culmination of two years’ work, building on more than two decades of legal practice in this area. “I am very grateful to the New Zealand Law Foundation for the opportunity to undertake this research,” said Sue. “I hope that the report might help to broaden the discussion about charities in New Zealand, even if just a bit.” Sue also hopes that the report might be taken into account in the Department of Internal Affairs’ review of the Charities Act 2005, which is currently on foot. “The current review tasks the DIA with reviewing itself which is problematic in a number of respects.” The report draws on the experience of comparable jurisdictions and aims to shine light on some of the underlying assumptions and unintended consequences that are causing considerable current difficulty in this area of law.

“This Fellowship means so much to me,” Sue said, “not least because it says that the charitable sector matters, and it is worth taking the time to try to get the legal framework for charities right.”

The report (pdf; 596 pages) is available to download here.

The Law Foundation contributed $120,000 towards this work through its International Research Fellowship.