Gloriavale’s Christian Church Community Trust loses charity status
Gloriavale’s Christian Church Community Trust has been stripped of its charitable status by the Charities Registration Board for serious wrongdoing.
The board’s decision to remove the trust from the Charities Register and disqualify former Overseeing Shepherd Howard Temple from governance roles follows a Department of Internal Affairs investigation and will have tax ramifications for the West Coast community.
“After carefully considering submissions the board has decided to deregister the trust for three years on the grounds of serious wrongdoing,” the board said.
“The board’s view is that the funding provided by the trust supported the Gloriavale community to operate in ways found to be unlawful and inconsistent with the wellbeing of trust beneficiaries.”
The trust was registered as a charity in May 2008, with records showing it had net assets of $47 million.
The department said the decision drew heavily on findings from Employment Court cases that found nine former members were employees, rather than volunteers, as well as the Teachers Disciplinary Tribunal.
The findings described the use of child labour from the age of six in trust-owned businesses, work carried out in harsh and at times dangerous conditions, failures to protect children and workers from harm and the internal handling and failure of the school to report sexual offending against a child.
Charities Registration Board chair Jane Wrightson said the decision was complex.
“The board accepts that current trustees have worked hard to effect change in the community and to improve procedures to support their community. However the behaviour set out in the NOID [notice of intended decision] did occur, and meets the threshold for serious wrongdoing: the behaviour was both grossly negligent and constitutes gross mismanagement.”
The department said significant changes implemented by the trust in recent years, including the appointment of independent trustees and strengthened governance and safeguarding arrangements, were taken into account.
The changes and efforts to improve oversight and accountability were carefully considered during the assessment but the seriousness, scale and duration of the governance and oversight failures led to a finding that trustees had failed in their responsibilities and that deregistration was in the public interest, the department said.
Temple, who was a trustee from March 1991 to October 2019, was disqualified from holding officer positions in registered charities for the maximum period of five years.
“His failure as a trustee to act in the best interests of the beneficiaries was of a scale that must attract the highest penalty the board can impose,” the board said.
Wrightson said it was in public interest to ensure entities granted the privilege of charitable status met their obligations with a diligence and rigour.
“The board recognises the right of the community to exist as a religious minority within a free and democratic society,” she said.
“The board regulates the trust, not the community, and this decision does not determine the future operation of this religious community. The decision concerns whether the trust should continue to enjoy the benefits of being a registered charity under the Act in light of the serious wrongdoing that has occurred. We have decided it should not.”
The board did not accept the trust’s submission that deregistration was not in the public interest because it would affect more than 560 people, including significant numbers of children, elderly and infirm.
“The board does not accept the submission of the trust that it is not in the public interest for it to be deregistered because it would incur negative financial consequences as a result of losing the privilege of tax-free status,” the board said.
“That privilege is lost only because the trust did not meet the obligations imposed on it in return for the benefits of tax-free status.”
The trust will be deregistered from 23 September and cannot reapply for registration for three years.
Department of Internal Affairs director of Charities Services Charlotte Stanley said she welcomed the board’s decision.
“The board’s decision relates specifically to the trust’s charitable registration. It does not determine the future operation of the religious community, nor does it address questions of criminal liability,” she said.
“This outcome highlights the importance of accountability, effective governance and demonstrable public benefit within the charitable sector. Maintaining public trust and confidence in registered charities is fundamental to the integrity of New Zealand’s charities system.
“While this is a significant decision, it is also one that reflects the seriousness of the conduct identified and acknowledges the impact on those affected.
“The department remains committed to upholding the standards expected of registered charities and ensuring that organisations receiving charitable status continue to meet their legal obligations and operate for the public benefit.”
The department said its investigation considered a substantial body of evidence, including court and tribunal decisions, interviews, governance and operational records and information provided by other agencies.
Charities Services first opened an investigation in April 2015 following reports of an increasing number of people leaving the community and allegations about forced marriage, physical and sexual abuse, forced separation of families and a controlling environment.
The regulator’s 2016 report concluded that trustees may have acted in a manner that constituted serious wrongdoing under the Charities Act, especially when handling physical and sexual assault allegations and members who wanted to leave the community.
Despite that, Charities Services decided it was in the public interest for the trust to remain on the register so the regulator could work with trustees to help them implement policies to improve its governance and management.
Charities Services rejected the Gloriavale Leavers Support Trust’s request to investigate the Christian trust’s charity status in 2020, saying the behaviour outlined in the complaint did not reach the required level of seriousness to be considered “oppressive”.
Charities Services opened a new investigation in May 2022 to examine whether Gloriavale was meeting its obligations under the Charities Act, following a landmark Employment Court ruling that found three men were community employees, working in factories and on farms from the age of six.
The investigation was put on hold from August 2022 to July 2023 to wait for the outcome of another Employment Court case that found that six women who worked on the community’s domestic teams were also Gloriavale employees.
Leavers Support Trust manager Liz Gregory said she was flabbergasted that Gloriavale’s trust had keep its charitable status for years.
“They’ve done the right thing. I just don’t understand why it took so long,” she said.
“There has been a lot of tax benefit given to Gloriavale and you’re only supposed to have a charitable entity if you are truly behaving charitably. It’s called accountability.”
When leavers first spoke to Charities Services one of their greatest concerns was community members suffering because of belt-tightening and a reduced quality of life, Gregory said.
“Gloriavale, you don’t need to pull in the reins of your spending on people. You people need money and finance for transport, for health, for adequate clothing, for enjoyment and entertainment, for education, these are the people you are supposed to be looking after. This is more important than successful business entities or keeping your reputation.”
The trust has a right to lodge an appeal with the Taxation and Charities Review Authority.
Gloriavale has been contacted for comment.