Charitable trusts are trusts set up to hold money or assets and carry out activities for the benefit of the community. They may be formed for the purpose of:
- the promotion of education
- the relief of poverty
- the promotion of religion
- other purposes of benefit to the community
A charitable trust as registered by the Registrar of Incorporated Societies gains tax benefits when approved by the IRD. These tax breaks include the absence of gift duty on gifts to the trust and the absence of tax on income earned by the trust.