In an email to government MP Joseph Mooney, chief executive Jennifer Belmont says the move — announced in the Budget last Thursday — is “deeply concerning” and risks the likes of the proposed world-class Queenstown to Glenorchy trail.
She understands the government’s concern is over donors giving to charities they control, but says the cap will affect all donors.
“It risks damaging major giving, endowment growth and permanent community capital at the very time we should be building these tools across New Zealand.
“If the concern is donor-controlled charities, then let’s design rules for donor-controlled charities.
“But let’s not cap generosity to community foundations, hospital foundations, school foundations, arts organisations, environmental charities, frontline organisations and major social infrastructure projects like the Glenorchy trail.
“NZ does not need less generosity.”
Belmont tells local MP Mooney 45South is working alongside Te Araroa and the Queenstown and Glenorchy trails trusts on the proposed GY trail.
“This is exactly the kind of ambitious social infrastructure project that will need philanthropy, community leadership and long-term endowment thinking to succeed.”
The trail, she says, has the potential to be one of NZ’s most beautiful walks.
And, in turn, it would bring real economic benefits.
“That is why this cap matters so much.
“It puts at risk not only individual gifts, but the wider economic and civic benefit those gifts can unlock.”
Mooney confirms he’s had concerns over the $100k tax exemption cap raised with him.
“I’ve very quickly relayed those concerns to [Minister of Revenue Simon] Watts.”
Mooney says “we’re very fortunate to have a very generous local community who are very passionate about investing in our community through philanthropy, so I would like to see that continue”.
As to whether the cap could put at risk funding for the Queenstown to Glenorchy trail, “I certainly don’t want it to be, that’s for sure”.
