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IS 18/05
20 Sep 2018

Income tax - donee organisations – meaning of wholly or mainly applying funds to specified purposes in New Zealand

This interpretation statement concerns donee organisations under s LD 3(2)(a) of the Income Tax Act 2007. It is relevant to organisations applying funds to purposes within New Zealand and to purposes overseas. It is not relevant to organisations listed in schedule 32 of the Act. The statement clarifies the interpretation of the requirement for a donee organisation to apply its funds 'wholly or mainly' to charitable, benevolent, philanthropic, or cultural purposes within New Zealand. The statement also explains Inland Revenue’s 'safe harbour' approach to administering this requirement. Inland Revenue will generally accept without further enquiry that an organisation meeting the minimum safe harbour percentage of 75% has met the requirement.

See the related factsheet