Sending your volunteers overseas can be a hugely enriching experience. It can benefit your organisation which  can provide on the ground support to projects, while the people who go have enriching and often life changing experiences.  However those who run the organisations must be careful to disclose the risks that the volunteers may face. For many, being overseas will involve exposure to new cultures, different standards of living, and different levels of security and safety.

In finalising arrangements for those you select to go overseas, we suggest some points which you may want to consider  include:

• Language: We suggest you create a “key phrases” summary of the typical words used for greeting, asking for food, saying thank you etc.
• Culture: Consider creating a briefing for those coming about your culture and any key differences that they should be aware of eg is tipping common?  Any cultural taboos?
• Travel: Describe the best route to get to your location (train, bus, taxi etc) and anything else they should know eg.,any transport vendors to avoid?.
• Immigration: the difference between paid working/volunteering and what is permissible, including visa requirements.
• Living options: Where the volunteer will live and if there are different options (including family considerations).
• Legal issues: Who is legally responsible in the event of things going wrong. (See discussion at the end of this article regarding a Deed of Release)
• Discipline: The organisation’s rules about persoanl conduct and the consequences of not abiding by  them (eg being asked to return to their home country).
• Orientation: Consider having a program of orientation for people when they first arrive, or at a pre-trip event .
• Costs: What will be covered by who and what it is expected that will be paid for eg food.
• Schedule: The usual schedule and rhythm of life and what is expected eg special groups / services / evening meetings / small group participation.
• Privacy: Any policies around sharing of material about the experience and obtaining consent to use the person’s picture and information in publicity, if needed.

It is important that where possible, you give your volunteers adequate training to prepare them for this exciting time. Cultural insights and training for their particular roles will help make the transition easier.  It may be good to consider some language training before and after they go with that as well.

Despite the training that is provided to volunteers, an organisation should make it clear that it cannot take on the responsibility for everything that happens while overseas. Organisations need to be careful to make clear that they are unable to take on the risk against situations like civil unrest, accidents, injuries and sickness. Nor can the oprganisation be expected to be responsible for events that might arise because a volunteer acted outside the applicable rules and guidelines.

For this reason we encourage organisations to sign a Deed of Release with their volunteers before they embark on their journey. This Deed could acknowledge that the organisation will assist where it can, yet it cannot guarantee the safety of the volunteer.

The Deed can also set out the terms of the nature of the relationship which can be altered to each organisation. This can require the volunteer to seek independent legal and medical advice prior to the trip. Organisations can also use this Deed to cover the use of photos and film for promotional purposes.

What is a Charitable Trust?

In New Zealand a common form that a charity will take is a charitable trust. These are used where there is not a “profit” motive for private gain for an individual from the activities of the trust. The regulator is both Charities Services (which registers charities if they meet legal criteria under the Charities Act 2005) and the Registrar of Incorporated Societies (which approves the incorporation of the trust boards under the Charitable Trusts Act 1957).

A registered charitable trust has the following key features:

– it is a separate legal entity;
– the liability of trustees is limited if the trust board has been incorporated;
– there is some cost involved in establishing the trust as certain documents are required but there is no cost to registering it; and
– there are ongoing reporting and administrative requirements.

Some Advantages

1. Separate Legal Entity

A charitable trust board which has been incorporated is a separate legal entity which can contract with others. A settlor (sometimes called donor) is needed to provide the initial amount which is how the trust is created (this is often a nominal figure such as $10).

2. Limited Liability

The liability of trustees is limited if the trust board has been incorporated. It is also common for a trust to provide indemnities for its trustees and officers and to take out insurance. Note, however, that trustees will be personally jointly and severably liable for certain taxes (GST, ACC levies, PAYE).

3. National Registration

New Zealand does not have a state-based system like Australia, so when a charitable trust has been registered by Charities Services that is a national registration.

4. Purposes are Restrictive

A charity in New Zealand must act to further its purposes which are set out in a trust deed. To be accepted as a registered charity those purposes must be charitable as defined in New Zealand law (which includes advancing religion). The charity cannot distribute funds or assets for the private gain of any individuals.

5. Powers of Trustees

Trustees can have a wide range of powers depending on how they are written in the Trust Deed. They can include matters such as use of funds, purchasing property, accepting money and carrying on a business.

Some Disadvantages

1. Establishment Costs

A charitable trust has some costs involved to set it up (usually more than $2,000.00 NZD). A lawyer will likely be involved to make sure that the purposes are charitable according to New Zealand law. They can also provide ongoing advice on the trust’s ongoing regulatory and filing requirements.

2. Disclosure and Reporting Requirements

A registered charity will have reporting requirements which can vary depending on their size (there are four tiers). There are financial reporting and auditing obligations on registered charities.

Every situation is unique so please discuss your situation with a professional advisor who can provide tailored solutions to you. We offer advice on all aspects of charitable trusts and are happy to answer any questions that you might have. Contact Steven Moe at stevenmoe@parryfield.com or 03-348-8480 for more information.

 

 

Some fascinating research has just been released about not for profit boards which is well worth a look.

 

The work has been done by Dr Jo Cribb who has made the research available at no cost here.  A good summary of the research is available in an article here.

 

The report is a timely reminder that we need to resource and better understand the needs of those serving on NFP boards.  As the article notes, “For the thousands of New Zealand directors serving on the more than 100,000 not-for-profit (NFP) boards in New Zealand – that is an estimated one in 40 of us  – being on the board is a labour of love.”

 

Some highlights identified in the article are the following:

• “NFP board members generally had little training for their board role relying instead on the experience they bought to the table from other roles. Those interviewed would welcome opportunities for practical hand-on opportunities to learn, including mentoring from experienced directors.”
• “A consistent strength of NFP governance was the board’s focus on achieving the NFP’s mission and vision.  All boards interviewed were focused on achieving the best for those they served.  We all should celebrate this dedication and determination.”
• “The research also questions the role of New Zealand’s governance community in valuing and supporting governance in this sector. A vast percentage of governance that happens in New Zealand, happens around a NFP board table. Investing in improving NFP governance will make an important contribution to strengthening our communities. NFP governance could be more widely discussed as part of governance conversations and a wider range of training, development and mentoring opportunities offered.”

 

The above are just a few highlights but the entire report is worth looking through for those operating in this area.

 

Dr Jo Cribb offers other information on her website here www.jocribb.co.nz and it is well worth checking that out as well.