We're now a not-for-profit! Plus GST changes
Published on October 28, 2021 by Alanna Irving
Kia ora koutou,
Thank you for being part of the OCNZ whānau! We have some important updates to share.
Thank you for being part of the OCNZ whānau! We have some important updates to share.
We are growing
OCNZ Collectives have raised over $52k! Goups like the EHF Community and Better Work Together and going strong, and we've had successful campaigns making a real difference in the community, like Home for the Crawfords.
We're open to new Collectives joining, so if you know of any kiwi groups seeking fundholding, send them to https://opencollective.nz.
We're open to new Collectives joining, so if you know of any kiwi groups seeking fundholding, send them to https://opencollective.nz.
OCNZ ltd is now a not-for-profit
We have made the change to officially become a not-for-profit company. While OCNZ will not become a registered charity (our partner Gift Collective has that covered), running as a not-for-profit is aligned with our values, and enables a better approach to tax (see below).
GST changes
We've done a deep dive on GST for fundholding in NZ. It turns out the IRD and accountants don't have standard answers because fundholding is still pretty new and uncommon in Aotearoa (especially by non-charities). This has led to a couple changes.
1. We have to start charging GST on the fundholding fees that Collectives pay OCNZ. Fees are changing from simply 5%, to 5%+GST, which works out to 5.75% total. So, if someone donates $100, now the Collective gets $94.25, OCNZ gets $5.00, and the IRD gets $0.75.
2. This change will enable OCNZ to claim back GST. If you pay GST-inclusive invoice expenses, the GST portion will be credited back to your balance every six months (less our standard 5% admin fee). We're not able to claim back GST on receipt reimbursement expenses, so please ensure your vendors submit their invoice expenses directly where possible so you can take advantage of this.
We have updated the OCNZ relationship agreement to reflect this change in GST handling.
As always, if you have any questions, get in touch! Ngā Mihi
1. We have to start charging GST on the fundholding fees that Collectives pay OCNZ. Fees are changing from simply 5%, to 5%+GST, which works out to 5.75% total. So, if someone donates $100, now the Collective gets $94.25, OCNZ gets $5.00, and the IRD gets $0.75.
2. This change will enable OCNZ to claim back GST. If you pay GST-inclusive invoice expenses, the GST portion will be credited back to your balance every six months (less our standard 5% admin fee). We're not able to claim back GST on receipt reimbursement expenses, so please ensure your vendors submit their invoice expenses directly where possible so you can take advantage of this.
We have updated the OCNZ relationship agreement to reflect this change in GST handling.
As always, if you have any questions, get in touch! Ngā Mihi