In defence of churches’ charitable status

the tails side of a new zealand two dollar coin sitting on a light blue wooden surface

About every three years some pundit in the media or politician raises the prospect of taxing the churches or decries their rates exemptions. Usually it’s hot on the heels of one of the larger churches making some silly comment in the media or a scandal of sorts. 

Most of this commentary is ill informed. 

To begin with, all churches already pay tax in the form of PAYE and GST and we do pay council rates with a very minor discount. Income tax is not paid because we are, like all charities, a not-for-profit. In other words, most of us don’t actually make income. We receive donations that have already been taxed and those are used to cover our costs. There is no profit to tax. 

The negative commentary also ignores the social contract society has with charities like churches who, usually more efficiently than the government, provide a wide range of social services. 

The government doesn’t have to pay for these services and couldn’t afford to anyway. Charities achieve this by marshalling volunteer labour, local facilities, a desire to help others and donations to make a difference in their communities.

Here in Greymouth, I think of the Salvation Army’s social programmes, church op shops, The Shed youth programme, counselling, food banks, affordable facilities to hire, weddings, funerals, an outlet for volunteers to serve their community and much more.

Most churches are already struggling financially and very few in the regions can afford full time clergy or pastors. Make it harder for churches and some will close down, and the community benefit will be lost making our communities less of a “community”, with a cost to government that would never be picked up.

Don’t let a dislike of a few larger churches lead to decisions that could destroy the good work of hundreds of others in our communities.

Check out other articles in the

series below.

More articles in the

series are to come.

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We have invited these writers to share their experiences, ideas and opinions in the hope that these will provoke thought, challenge you to go deeper and inspire you to put your faith into action. These articles should not be taken as the official view of the Nelson Diocese on any particular matter.

In defence of churches’ charitable status

In defence of churches’ charitable status

Tim Mora

Venerable Tim Mora is the vicar of Cobden-Runanga Parish on the West Coast.

In defence of churches’ charitable status

the tails side of a new zealand two dollar coin sitting on a light blue wooden surface

About every three years some pundit in the media or politician raises the prospect of taxing the churches or decries their rates exemptions. Usually it’s hot on the heels of one of the larger churches making some silly comment in the media or a scandal of sorts. 

Most of this commentary is ill informed. 

To begin with, all churches already pay tax in the form of PAYE and GST and we do pay council rates with a very minor discount. Income tax is not paid because we are, like all charities, a not-for-profit. In other words, most of us don’t actually make income. We receive donations that have already been taxed and those are used to cover our costs. There is no profit to tax. 

The negative commentary also ignores the social contract society has with charities like churches who, usually more efficiently than the government, provide a wide range of social services. 

The government doesn’t have to pay for these services and couldn’t afford to anyway. Charities achieve this by marshalling volunteer labour, local facilities, a desire to help others and donations to make a difference in their communities.

Here in Greymouth, I think of the Salvation Army’s social programmes, church op shops, The Shed youth programme, counselling, food banks, affordable facilities to hire, weddings, funerals, an outlet for volunteers to serve their community and much more.

Most churches are already struggling financially and very few in the regions can afford full time clergy or pastors. Make it harder for churches and some will close down, and the community benefit will be lost making our communities less of a “community”, with a cost to government that would never be picked up.

Don’t let a dislike of a few larger churches lead to decisions that could destroy the good work of hundreds of others in our communities.

Check out other articles in the

series below.

More articles in the

series are to come.