Are you involved in a trust, incorporated society or a charitable group? Under the new Incorporated Societies Act, passed in 2022, existing societies must re-register by April 2026.
There are also new requirements around financial reporting, dispute resolution and membership management. If societies don’t reregister by April 2026, they will lose their status as a legal entity, which means members could be held liable for the society’s debts and other obligations, and possibly lose control of their assets.
Faced with these changes, Trusts and Societies have some decisions to make. Many don’t want to lose the history of their charity, and may still want to be involved in decisions about how the funds are used, but they may feel that they can’t continue in their current structure. A trust transfer through Northland Community Foundation may provide the solution.
At Northland Community Foundation, we can help with a Trust Transfer, where the legal ownership and administration of a trust is handed over to the Foundation, while still maintaining the trust's original purpose and legacy.
Your Trust or organisation would set up a Named Fund with Northland Community Foundation, transferring the balance from the trust into the new Fund, and outlining the purpose of the fund, which would likely align with your original purpose. The funds would be invested and managed by our investment advisors, with grants being distributed each year from the interest earned from the investment. This creates a permanent funding stream for the purposes your trust was established for, whilst the fund grows over time.
Your fund would retain the same name and mission but with the Foundation taking care of all the legal, administrative, distributing and reporting requirements — leaving you free to focus your time and energy on the work your trust or society was created to do, and ensuring your Trust’s story is told long into the future.
In 2019, we were approached by the Dargaville Rotary Club about transferring the management of the Hughes Trust Fund to Northland Community Foundation. Six years after the initial transfer of $69,412, its original value has increased by 11.2%. In addition, the Fund has given out $10.7k in grants. These annual disbursements are paid out to the Dargaville Rotary Club to be distributed for charitable purpose within the Northern Wairoa region, as set out in the original intent of the Trust Fund. The growth in the Fund, while also making grants, shows the power and potential of our perpetual endowment model and why transferring your Trust might be right for you.
If you think a Trust Transfer to Northland Community Foundation might be the solution you are looking for your trust, get in touch with us today.
For more information about Trust Transfers, see our Resources Page.
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