Wednesday, May 4, 2016

RED TAPE STRANGLES CHARITY !!!


My service club has run a street raffle for many years as part of our annual  fund raising, always kept below an arbitrary limit as to prize value to avoid bureaucratic  red tape thought up by cardigan wearing numpties with very little understanding how the real world works.

This year with our community facing a very challenging situation, replacing our cottage hospital damaged beyond repair in the seismic events of the last six years, we joined forces with a local Health Hub volunteer support group to increase  the raffle  value to around 20k gross ticket income, with an attractive prize pool all donated.

Now we are faced with audit fees that range from $3000 upwards to satisfy The Dept of Internal Affairs rules that is compounded by increasing liability for those auditing becoming gun-shy as being culpable should disaster strike in the form of financial irregularity
Added to permit fees, ticket printing,  the Net result at a diminished figure that leaves members  feeling   discouraged and so very disappointed.
To a degree that many feel such impositions make such activity likely to be abandoned.

Of course we are a bunch of very dodgy individuals with day jobs ranging up to senior judicial figures but to be forced by rules and protocols to spend upwards of 20% of the proceeds in expenses makes it all rather problematic as to future actions in attempting to raise money.

The total raised through the efforts of our club for this project stands over 100k and that achieved while still  maintaining the myriad of  calls on our funds for a wide range of  worthy recipients local, national, and international.

Members are being similarly challenged as when the Clark Government, in a vain attempt at tightening rules for charities leading to a need to form a charitable "Trust" rather than relying on the awesome reputations of Rotary, Lions and other long established Charitable groups to self administer quite strenuous values of probity and fiduciary standards.

7 comments:

Adolf Fiinkensein said...

Split the raffle into two raffles and sell double tickets.

David said...

Because no one ever in the entire history of the known world has used a charity as a cover to rip people off.

PC said...


It's called the "dead hand" of Government for a very good reason.

gravedodger said...

Be very interested if you have evidence among Rotary Lions or Jacees David.
Of course there are many frauds but a service club ripping of their great works does stretch my credibility.

The Charities Commission already accepts our accounts as "audited" through our constitution and our annual turnover that does not require a $3000 plus annual fee, is in multiples of the freakin raffle total.

What you are referring to is almost always a trusted employee misusing funds as an individual through inadequate supervision and systems, not a service club acting in concert, in our case it would need the membership of over 40 members who are quite choosy who they admit to their company to be complicit or unaware

It is not just the permit from Internal Affairs it is the gifting of the fee to a bean counter for bugger all more than the membership is already collectively watching over.

Yes AF already being considered but with a prize pool nearly half the ticket income and at $5 a ticket we were apprehensive on selling it to a relatively small captive catchment.
I sold several tickets to cruise ship tourists and promised many that should They win I would refund their Hillary and deal with the inconvenience of the prize with no further bother for them LOL.

Eric said...

I, too, had service club involvement in raising money. My position was always that a worthy cause was easy to raise funds for. Donations easily outstripped raffles. Donors do not need the attraction of winning a prize to donate to a worthy cause. For the cause you mention many people would prefer to hand over cash (and always more than the face value of a raffle ticket) that is not diluted by running costs and compliance costs.

Anonymous said...

Believe it or not the legislation was brought in with good intentions, cumbersome perhaps but necessary.

http://www.rotaryinternational-wallofshame.com/


Lord Egbut

gravedodger said...

Egbut old chap it still smacks of sledge hammers to crack nuts to me.

Don't know if you heard a late breaking story where a Sth Canty employee stole over 180 k using contractor employer's credit cards only discovered when a new card was added to an off the shelf accounting program picked up irregularities. Dopey cow was seen shopping by dopey employer oblivious her trolley contents were going on his tab.