By Roselyn Fauth
I was thinking about the fundraising for our heritage, school, sports and entertainment... my thoughts were sparked by a post on the Aoraki Foundation page, regarding a government announcement...
Sometimes the people who gave in the past never got to enjoy the full benefit themselves... but we do. Im so greatful for their vision and generosity.
Which is why the Government's Budget 2026 announcement about donation tax credits caught my attention.
From April 2027, donations eligible for the 33⅓% donation tax credit will be capped at $100,000 a year. Until now, the credit has been uncapped, up to the amount of income tax paid by the donor.
The Government estimates this will save $51.8 million over the forecast period. Its stated rationale is to improve the long-term sustainability of the scheme and reduce tax-planning opportunities associated with very large donations.
I understand that public money needs scrutiny. Tax credits are public money, after all.
But charities and community foundations are worried this may affect major gifts, endowment funds and bequests. The concern is not that generous people will suddenly stop caring. It is that some may give less, delay giving, or structure their giving differently.
The timing is interesting... community Foundations of Aotearoa New Zealand estimates around $1.6 trillion will pass between generations over the next two decades. Public Trust has also talked about a projected $1.6 trillion transfer over the next 25 years!!! Holy smokes thats some serious coin!
This raises a question for us in South Canterbury: How much of that wealth will be caught for local good?
South Canterbury has developed both kinds of generosity: large gifts that create lasting public assets, and everyday volunteering and acts of giving that keep community life going.
For those who are in a position to make major gifts, establish funds, or leave bequests, it feels a shame this announcement may make generosity a little less encouraged at exactly the time New Zealand is entering one of the largest intergenerational transfers of wealth in its history.
Local giving is powerful. It keeps generosity connected to the places, people and needs we know.
It means wealth earned here, saved here, inherited here, or shaped by a life lived here can continue to benefit the community that helped create it.
That might mean supporting a school, PTA, former-student association, hospice, sports club, heritage project, foodbank, women's fund, youth programme, environmental initiative, arts organisation, scholarship, rescue service, or a small community group quietly doing important work.
Perpetual funds are especially powerful because the original gift is invested, and the income can continue supporting local causes year after year. That is why community foundations matter. They help ensure local generosity continues working locally.
South Canterbury's history gives us plenty to think about.
The Aigantighe Art Gallery began with an extraordinary local gift when in 1955, Jessie Wigley and James Grant gifted the Aigantighe house and grounds of late parents to the people of Timaru. The gallery opened on 16 August 1956, fulfilling a public art gallery dream first advocated by the South Canterbury Art Society in 1895!
The South Canterbury Museum was established in 1941 by the South Canterbury Historical Society, following the bequest of land and buildings by T. D. Burnett.
The former Timaru Public Library opened in 1909 after Mayor James Craigie secured funding from Andrew Carnegie, part of a worldwide movement that believed communities should have access to knowledge.
Today, the Gallery, Museum and Library sit within Council as public services for our district. But part of what Council cares for now began with gifts, bequests, advocacy and community vision from the past.
The Timaru Botanic Gardens tell a similar story when land was set aside as a public reserve in 1864 after local residents asked the Canterbury Provincial Council to reserve land for public use. Over time, local people helped transform it through fundraising, gifts, plantings, and voluntary labour. The Band Rotunda was added in 1912, and in 1913 the Robert Burns statue was donated by former mayor James Craigie.
Giving as you know is not just history.
People gave to help bring an MRI scanner to South Canterbury... swimming pool fundraising... playground... lifeboat shelter, and now a focus on big civic projects for sport, heritage and entertainment. It's a very exciting time.
We often think of inheritance as something families receive... but its also what communities inherit too. This is the lesson i have learned from connecting to stories of our past.
So as one of the largest transfers of wealth in New Zealand's history unfolds, what do we want to leave behind?
And how do you feel about the Government's announcement?
There are some 30 000 registered charities and they hold $91billion in assets, they have annual income of around $30 billion. That's a lot of charities for just 5.2 million people.
Spreading donations over a few years could equal a decrease in the total people wish to donate. For example instead of a very high earner donation $300K every two years, they will end up donating $100K a year, so the charity loses $50K a year if the donor wants to use tax credits.
Does the cap feel like sensible public expenditure control, or does it risk discouraging the kind of major gifts and bequests our communities may need more than ever?
And what is something in South Canterbury that exists today because somebody chose to give?