Public consultation on taxation and the not-for-profit sector

Inland Revenue is seeking public feedback on matters relating to the charities and not-for-profit sector. The consultation document covers the following topics:

• Should the income tax exemption for charity business income be removed or restricted?
• Should there be specific tax rules for donor-controlled charities such as private foundations?
• Are some of the tax exemptions for not-for-profits still fit for purpose?
• How could tax obligations for donors and volunteers be simplified?

These are only policy proposals at this stage. No decisions have been made. 

Government will consider feedback and decide whether any changes should be made to current rules and any changes it decides to proceed with would need to be included in a future taxation Bill. Inland Revenue will ensure that affected entities are kept informed.

Consultation closes on 31 March 2025.

Taxation and the not-for-profit sector