There is no single process for setting up a shed. There are however some useful resources that can help in deciding how;
- to go about setting up a shed,
- to establish a community group to manage a shed and
- getting charitable and IRD tax-free status.
Sheds are usually either an Incorporated Society, a Charitable Trust or auspiced (part of another organisation – church, council group). Useful resources are available at:
- The NZ Companies Office website has information about establishing a Society or a Trust.
- CommunityNet Aotearoa – check this Community Resource Kit.
- Community Law – Provides free legal advice, and includes guidance on establishing a community group
and guidance on applying for charitable status.
We suggest that your group endeavour to have a structure and rules that enables registration with Charities Services (CS). Some funding providers will not grant funds to organisations that are not registered. The advantages of CS registration should outweigh compliance matters e.g. filing a Performance Report within six months of financial year end. Read more here and here.
The following documents are provided to assist with the establishment of new sheds. Feel free to download them and modify as required.
Example of Incorporated Society
Example of Charitable Trust
An example disclosure letter for financial reviewer
Who owns it. An example from the Henley shed of how to manage donated resources.
We recommend that sheds consider using a free corporate style email account. A very good option is Google which provides email – Gmail.
You could have addresses for each officer like this
firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
… or just one account email@example.com and a shared password. Each address can be shared with the others, so if one of the team is out of action, another person can access or reassign the account.
Google Gmail is by far the most popular choice of sheds with corporate addresses. Gmail also powers the MENZSHED NZ Executive email.
Google can also provide a shared drive (cloud storage) and popular applications Sheets and Docs (the equivalent to Excel and Word). It is a great way of storing your important documents – registrations, rules, minutes, financial reports, correspondence.
Get started with Google here.