The Department of Internal Affairs

Te Tari Taiwhenua | Department of Internal Affairs

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Services › Casino and Non-Casino Gaming › Examples of Authorised Purposes

The following are examples of what can be considered an authorised purpose under the Gambling Act 2003. They are examples only and are not intended to be an exclusive list. They include Class 1, 2 and 3 authorised purposes as well as Class 4.

Examples include:

See also Tips for Making Authorised Purposes


Anzac/Poppy Day Commemorations

The cost of Anzac and Poppy day commemorations can be approved as an authorised purpose for Returned Services Associations as long as the provision of alcohol, food or entertainment is excluded.

An authorised purpose statement may read:
“Assistance with the costs of Anzac and Poppy Day commemorations. Excludes the provision of alcohol, food or entertainment.”


Capitation Fees

The payment of capitation fees for national organisations may be acceptable as an authorised purpose. Examples of this could be the payment of capitation fees to the New Zealand Returned Services Association or the New Zealand Chartered Clubs Association. The level of fees must be reasonable and in proportion to the benefit the club receives from its affiliation with any organisation.

An authorised purpose statement may read:
"Payment of capitation fees to the NZRSA.”


Christmas Parties

The actual and reasonable costs involved with the running of Christmas parties for needy people can be an authorised purpose. However, the provision of a grant must exclude alcohol.

An authorised purpose statement may read:
“Actual and reasonable costs involved with running Christmas parties. Excludes alcohol.”


Coaching Costs

An authorised purpose can be the actual and reasonable costs involved in conducting coaching clinics for junior sports people. This can include the payment for the actual time involved to the person conducting the coaching if done on an incidental basis (i.e. specific short term coaching courses).

An authorised purpose statement may read:
“Actual and reasonable costs of conducting coaching clinics for junior sports people.”


Grants to Charitable and Community Organisations

Grants to recognised charitable organisations (e.g. Plunket or Red Cross) to further the objectives of these groups can be an authorised purpose.

Provision of funds and/or facilities for people suffering from a disability (through organisations such as the Royal New Zealand Foundation for the Blind, National Heart Foundation of New Zealand and the Cancer Society of New Zealand) is an authorised purpose. The provision of funds can also be for a particular purpose within auspice of that charitable organisation. For example, the authorised purpose statement may distinguish between funds that are to be used for research activities as opposed to educational activities.

Grants to recognised, educational, sporting and community organisations or clubs (e.g. historical societies) to further the objectives of these groups are also acceptable.

Grants to cultural activities and groups can be made if they fall within the notion of a “non-commercial purpose that is beneficial to the whole or a section of the community”. An authorised purpose could be the provision of funding for the performance of a kapa haka group or the support of a local non-commercial museum.

A society may have internal policies that dictate whether these grants are restricted to organisations or activities within the local community.

Clubs that usually apply funds to club purposes are also able to make auditable donations to the types of organizations described above.

An authorised purpose statement for societies that mainly distribute to the community may read:
“Grants to bona fide charitable, educational, cultural and sporting organisations”; or
“Grants to [X Society] for [X purpose].
    An authorised purpose statement for clubs may read:
    “Donations to bona fide charitable, educational, cultural and sporting organisations”; or
    “Donations to [X Society] for [X purpose].


    Educational Purposes

    Donations for the educational advancement of students through grants to schools or other educational institutes for equipment or the development of better student amenities.

    An authorised purpose can be the establishment of student scholarships, bursaries or grants to assist individual students in their general educational advancement provided such students are selected in a fair and open manner after public advertising.

    Students who receive educational grants and scholarships must be overseen by a recognised educational authority or school board.

    An authorised purpose statement may read:
    “Educational grants and scholarships to students who are approved, administered, and overseen by a recognised educational authority or school board.”


    Electioneering

    The costs associated with electioneering can be an authorised purpose. An     electioneering purpose is defined in the Gambling Act 2003 and cannot be an authorised purpose for the distribution of class 4 gambling proceeds.

    An authorised purpose statement for class 3 gambling may read:
    “Actual and reasonable expenses incurred in the process of electioneering.”


    Encouragement of Participation in Sports Codes

    The encouragement of participation in amateur sport can be an authorised purpose. The focus of this authorised purpose must be on the promotion of actual physical participation/recreation rather than passive participation.

    An authorised purpose statement may read:
    “Encouragement of active participation in amateur….”


    Executive Travel Expenses for Clubs (Conferences)

    The costs associated with executive members of a club attending conferences directly related to club business can be an authorised purpose.

    An authorised purpose statement may read:
    “Actual and reasonable expenses incurred by executive members’ attendance at conferences directly related to club business.”


    General Administration Costs for Charitable and Community Organisations

    The general administration costs of a non-commercial charitable or community organisations can constitute an authorised purpose. This can include the actual and reasonable expenses associated with ongoing provision, maintenance and development of a complex, buildings, furniture, fittings, plumbing, grounds, and other actual and necessary equipment for the organisation only. This includes general administration and running costs such as rates, electricity, gas and insurance. It does     not include the expenses of a society that operates class 4 gambling on commercial venues.

    An authorised purpose statement may read:
    “Provision, maintenance and development of [name of organisation]. Includes rates, insurance, general administration and security costs.”

    See also Wages and Salaries


    Marae

    Actual and reasonable expenses associated with the ongoing provision, maintenance, and development of the Marae complex, buildings, ablution block, furniture, fittings, plumbing, grounds, and equipment can be an authorised purpose. This can include the general administration and running costs of the Marae such as rates, electricity, gas, insurance, and the like.

    An authorised purpose statement may read:
    “Provision, maintenance and development of [name of Marae]. Includes rates, insurance, general administration and security costs.”


    Memorabilia, Plaques, Maintenance of Cemetery (RSA)

    An authorised purpose can be the purchase of memorabilia, plaques and the maintenance of a Returned Services Association cemetery.

    An authorised purpose statement may read:
    “Purchase of memorabilia, plaques and maintenance of the RSA cemetery.”


    Mortgage Repayments for Clubs

    To financially assist the repayment of a club’s loan that was used to purchase specified equipment or property could be an authorised purpose. However, this authorised purpose must exclude a loan for the purchase of buildings or property for commercial or investment purposes and excludes the provision of bar areas. The authorised purpose statement should specify a termination date for the loan.

    An authorised purpose statement may read:
    “To financially assist the repayment of the society’s loan which was used to purchase…. Current loan is due to be paid no later than….”


    Multi-Site Societies

    An Example of an Authorised Purpose Statement for Multi-Site Societies:
    “Any charitable, non-commercial purpose that is beneficial to the community or any section of it. This shall include, but not be limited to: the provision, or the assistance in the provision of facilities, equipment, or playing or training uniforms for sporting clubs and amateur sporting teams playing in recognised, published leagues or competitions. Grants for charitable purposes including the relief of poverty or welfare assistance through donations to recognised social service or welfare agencies. Grants to educational or training organisations through the provision of scholarships or equipment that is administered by the recipient educational organisation. Excludes donations for electioneering purposes."


    Prizes for Sports Events

    The cost of purchasing trophies, plaques and modest non-cash prizes for bona fide amateur sporting events is acceptable as an authorised purpose.

    An authorised purpose statement may read:
    “Provision of trophies and modest non-cash prizes for bona-fide amateur sporting events.”

    Or, for a club:
    “To assist with trophies, plaques and modest non-cash prizes from recognised amateur sporting events”.

    See also Sports Clubs


    Provision, Maintenance and Development of Club Buildings

    The provision, maintenance and development of club buildings, furniture, fittings, equipment and grounds can be an authorised purpose. This includes funds for building extensions, renovations or construction of new premises, where the principle purpose of the premises is for direct use by club members. However, an authorised purpose must exclude the purchase of buildings or property for commercial or investment purposes and excludes the provision of bar areas.

    The purpose can include the payment of the club's mortgage and general administration costs.

    An authorised purpose statement may read:
    “The provision, maintenance and development of club buildings, furniture, fittings, equipment and grounds. Excludes bar areas.”

    See also Mortgage Repayments and General Administration Costs for Charitable Community Organisations


    Purchase and Maintenance of a Club Vehicle

    An authorised purpose can be the purchase and/or maintenance of a club vehicle to be used for club business (e.g. transportation of club members to compete in sporting events, welfare purposes etc). The vehicle is not to be used for private or personal purposes or for use as a courtesy coach.

    An authorised purpose statement may read:
    “Purchase and maintenance of a club vehicle to be used for club business (e.g. transportation of club members to complete in sporting events, welfare purposes etc). Vehicle not for private or personal purposes or for use as a courtesy coach.”


    Racing Clubs

    The provision of grants to Racing Clubs has received special mention in the Gambling Act 2003. In section 4 of the Gambling Act 2003, the definition of an authorised purpose includes “promoting, controlling, and conducting race meetings under the Racing Act 2003, including the payment of stakes”.

    A standard statement of racing club’s authorised purposes is:
    “To provide for the conduct of race meetings for the benefit of the public and to promote and control those meetings, including:
    1. the provision and maintenance of grounds, buildings and facilities where these are primarily used for race meetings;
    2. stake money for any types of races;
    3. the provision and maintenance of on-course facilities for horses and greyhounds, trainers and jockeys; but excluding the following:
    4. payments, other than stake money, to horse or greyhound owners or trainers;
    5. payments to professional jockeys;
    6. activities or expenses in connection with the breeding of racehorses or greyhounds.”

    Religious Groups

    An authorised purpose can be the actual and reasonable expenses associated with ongoing provision, maintenance and development of a religious complex, buildings, furniture, fittings, plumbing, grounds, and other actual and necessary equipment for the religious complex only. This includes general administration and running costs of the religious complex such as rates, electricity, gas and insurance.

    An authorised purpose statement may read:
    “Actual and reasonable expenses associated with ongoing provision, maintenance and development of a religious complex, buildings, furniture, fittings, plumbing, grounds, and other actual and necessary equipment for the religious complex only. Includes general administration and running costs of the religious complex such as rates, electricity, gas and insurance.”
      See also Wages and Salaries


      Sports Adjuncts

      An authorised purpose can be assistance to sporting adjuncts within a bona fide club. This can be for the provision of uniforms, equipment, premises, and actual and reasonable expenses to travel to and compete in bona fide tournaments with kindred groups.

      An authorised purpose statement may read:
      “Assistance to sporting adjuncts within the club through provision of uniforms, equipment, premises, and actual and reasonable expenses to travel to and compete in bona fide tournaments with kindred groups.”

      See also Sports Clubs


      Sports Clubs

      Donations to amateur sports teams and clubs competing in recognised leagues and tournaments are authorised purposes. Grants are only to be issued to bona fide sports teams and clubs which are formally established and/or legally constituted.

      Grants can also be issued for sports equipment, playing uniforms, ground/facility hire and actual and reasonable travel expenses for groups participating in tournaments with kindred groups. However, grants cannot be made for ground or facility hire when they are run for commercial profit.

      No grant shall be issued to any player or team competing on a professional basis.

      For the avoidance of doubt, the definition of “amateur” that is approved by the department is:

      “Any activity that is played or carried out as a pastime which excludes the payment of money or monies (including prizes) to any individual for personal gain”.

      The definition of “bona fide sport” that is approved by the department is a sporting activity, organisation or club that is:
      • affiliated or aligned to a national body; and
      • genuine and real (has standards and rules etc.); and
      • played on a regular basis as part of a significant competition; and
      • open to public membership.
      An authorised purpose statement may read:
      “To assist bona fide amateur sports teams and clubs competing in recognised leagues and tournaments. Includes sports equipment, playing uniforms, ground hire, and actual and reasonable travel expenses for groups participating in tournaments with kindred groups.”


      Wages and Salaries

      Wages and salaries may be eligible for authorised purpose grants where the employing body has an entirely non-commercial community or charitable purpose and provided that the payment of a wage is necessary to achieve the authorised purpose, that is, where the authorised purpose would not be achieved without it. For example, the payment of an amateur sports coach may be an authorised purpose, as may the salaries of a nurse or green keeper who work for a charitable organisation.

      This purpose often applies to the Returned Services Association (RSA). The wages or salaries of staff whose position is entirely dedicated to supporting the non-commercial purposes of the RSA can be an authorised purpose but this excludes bar staff.

      An authorised purpose statement may read:
      “Wages and salaries of staff where it is necessary to achieve an authorised purpose.”


      Welfare Assistance

      An authorised purpose can be welfare assistance to needy members of the public or their dependants through grants or assistance with funeral expenses, hospitalisation, convalescence, health aids, and the like.

      An authorised purpose statement may read:
      “Assistance with funeral expenses, hospitalisation, convalescence, health aids, and the like.”

      See also Grants to Charitable, Cultural and Community Organisations