Corporate Trustee employee theft underpins calls for a minimum of two Trustees for Charities [*].

The New Zealand Trustees Association has called for a change to charity law to ensure there are a minimum of 2 Trustees for charities, with the ability to appoint a 3rd Trustee for any impasse.

NZTA Registrar Errol Anderson said “The recent theft by a Corporate Trustee employee of trust funds highlights the need for greater protection of Public and Government interests in charities.”

NZTA have lobbied many times for a change to eliminate sole-Corporate Trustees for charities.

Mr Anderson went on to say “The crux of the matter is that charities are vulnerable when administered by a sole-Trustee. Audits alone cannot be relied upon to identify early stages of problems that may include management over-charging, unneeded internal investment portfolio changes, theft, lack of distributions / service delivery, or other issues that may lead to charity loss.”

“Recognising that the Public and Government are the major stake-holders in all charities, we need to see a change as soon as possible.”

The Trustees Association says there is growing sector support for regular Governance & Operational Reviews for mid-to-large sized charities.

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[*] Reference.

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