Gloriavale's Christian Church Community Trust has been stripped of its charitable status by the Charities Registration Board for serious wrongdoing.

The board's decision to remove the trust from the Charities Register and disqualify former Overseeing Shepherd Howard Temple from governance roles follows a Department of Internal Affairs investigation.

"After carefully considering submissions the board has decided to deregister the trust for three years on the grounds of serious wrongdoing," the board said.

"The board's view is that the funding provided by the trust supported the Gloriavale community to operate in ways found to be unlawful and inconsistent with the wellbeing of trust beneficiaries."

The trust was registered as a charity in May 2008, with records showing it had net assets of $47 million.

The department said the decision heavily drew on findings from the Employment Court cases that found nine former members were employees, rather than volunteers, as well as the Teachers Disciplinary Tribunal.

The findings described the use of child labour from the age of six in trust-owned businesses, work carried out in harsh and at times dangerous conditions, failures to protect children and workers from harm and the internal handling and non-reporting of sexual offending against a child at a trust-owned school.

Charities Registration Board chair Jane Wrightson said the decision was complex.

"The board accepts that current trustees have worked hard to effect change in the community and to improve procedures to support their community. However the behaviour set out in the NOID [notice of intended decision] did occur, and meets the threshold for serious wrongdoing: the behaviour was both grossly negligent and constitutes gross mismanagement."

The department said significant changes implemented by the trust in recent years, including the appointment of independent trustees and strengthened governance and safeguarding arrangements, were taken into account.

The changes and efforts to improve oversight and accountability were carefully considered during the assessment but the seriousness, scale and duration of the governance and oversight failures led to a finding that trustees had failed in their responsibilities and that deregistration was in the public interest, the department said.

As part of the decision, former trustee Temple was disqualified from holding officer positions in registered charities for the maximum period of five years.

Wrightson said it was in public interest to ensure entities granted the privilege of charitable status met their obligations with a diligence and rigour.

"The board recognises the right of the community to exist as a religious minority within a free and democratic society," she said.

"The board regulates the trust, not the community, and this decision does not determine the future operation of this religious community. The decision concerns whether the trust should continue to enjoy the benefits of being a registered charity under the Act in light of the serious wrongdoing that has occurred. We have decided it should not."

The trust will be deregistered from 23 September and cannot reapply for registration for three years.

Department of Internal Affairs director of Charities Services Charlotte Stanley said she welcomed the board's decision.

"The board's decision relates specifically to the trust's charitable registration. It does not determine the future operation of the religious community, nor does it address questions of criminal liability," she said.

"This outcome highlights the importance of accountability, effective governance and demonstrable public benefit within the charitable sector. Maintaining public trust and confidence in registered charities is fundamental to the integrity of New Zealand's charities system.

"While this is a significant decision, it is also one that reflects the seriousness of the conduct identified and acknowledges the impact on those affected.

"The department remains committed to upholding the standards expected of registered charities and ensuring that organisations receiving charitable status continue to meet their legal obligations and operate for the public benefit."

The department said its investigation considered a substantial body of evidence, including court and tribunal decisions, interviews, governance and operational records and information provided by other agencies.

The board issued a notice of intended decision in April 2025 to deregister the trust and disqualify five trustees.

The board later spent two days with trust representatives to hear their objections and considered more information this year.

The trust and trustees have a right to appeal the decision.

Gloriavale has been contacted for comment.