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.
Have your say through the Trust Sector Survey – with a Free membership draw for participants.
Ph: 0800 48 48 50