Tier 3 & 4 New reporting standards workshops

New reporting requirements for registered charities became mandatory from 1 April 2015.

DIA Charities Services (external link)  held workshops for Tier 3 and Tier 4 charities throughout New Zealand from the beginning of March until the end of June, to help registered charities understand how to apply the new requirements. The workshops were supported by the External Reporting Board (XRB).

The free, two-hour workshops were aimed at registered charities with annual operating expenditure less than $2 million. These charities will be able to report using Simple Format Reporting standards.

The workshops focused on the information that charities need to collect so they can report using the new standards at the end of their financial year.

Because the requirements for Tier 3 and Tier 4 charities are different, separate workshops were held for each of the tiers.

A series of short videos based on workshops are available for those who weren't able to attend the workshops:

Tier 4 Get started videos

Tier 3 Get started videos


How do I know which tier our charity should use?

There are two things that charities must consider when deciding which tier they will report under – their annual operating payments or expenses, and the accounting method they use.


Charities with annual operating payments less than $125,000 that use cash accounting should go to a Tier 4 workshop.

Charities with annual expenses less than $2 million that use accrual accounting should go to a Tier 3 workshop. This includes small charities with annual operating payments less than $125,000 that choose to use accrual accounting.

IMPORTANT NOTES: If your charity’s annual expenses are more than $125,000 and you currently use cash accounting, you will need to change to accrual accounting.

Charities with public accountability must report using the Tier 1 standard. We expect that very few charities have public accountability, and those organisations that do will be aware of it.

For more information see Which tier will I use? (external link)