5 Meaning of charitable purpose and effect of ancillary non-charitable purpose

(1)

In this Act, unless the context otherwise requires, charitable purpose includes every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community.

(2)

However,—

(a)

the purpose of a trust, society, or institution is a charitable purpose under this Act if the purpose would satisfy the public benefit requirement apart from the fact that the beneficiaries of the trust, or the members of the society or institution, are related by blood; and

(b)

a marae has a charitable purpose if the physical structure of the marae is situated on land that is a Maori reservation referred to in Te Ture Whenua Maori Act 1993 (Maori Land Act 1993) and the funds of the marae are not used for a purpose other than—

(i)

the administration and maintenance of the land and of the physical structure of the marae:

(ii)

a purpose that is a charitable purpose other than under this paragraph.

(2A)

The promotion of amateur sport may be a charitable purpose if it is the means by which a charitable purpose referred to in subsection (1) is pursued.

(3)

To avoid doubt, if the purposes of a trust, society, or an institution include a non-charitable purpose (for example, advocacy) that is merely ancillary to a charitable purpose of the trust, society, or institution, the presence of that non-charitable purpose does not prevent the trustees of the trust, the society, or the institution from qualifying for registration as a charitable entity.

(4)

For the purposes of subsection (3), a non-charitable purpose is ancillary to a charitable purpose of the trust, society, or institution if the non-charitable purpose is—

(a)

ancillary, secondary, subordinate, or incidental to a charitable purpose of the trust, society, or institution; and

(b)

not an independent purpose of the trust, society, or institution.

Section 5(2A): inserted, on 25 February 2012, by section 5 of the Charities Amendment Act 2012 (2012 No 4).