Adjusting To Change21.06.2018
In November last year Colin Guild, President of the Malvern Farmers’ Veterinary Club Incorporated wrote to members advising them of a forthcoming Special General Meeting to outline their resolution to wind up the ‘Club’ and register it as a Charitable Trust.
The Malvern Farmers’ Veterinary Club Incorporated was founded in 1952 when many such clubs were established throughout New Zealand to provide veterinary services to their local districts. They were granted tax free status in the form of an incorporated society.
The Club operated successfully for many years, with clinics in Darfield and Oxford, and was run by an elected Executive which employed the staff and managed the business. However from around the years 1998-99, the Club began to incur financial losses. The reasons were varied, but the Executive reacted decisively purchasing land in Darfield and Oxford and transitioned the Club to a contracted practice model. This process went on for a number of years and involved new clinics in Darfield and Oxford, plus upgraded rental property in Darfield, resulting in a strong financial position.
The reasons for the Club’s proposed change in status are now:
- Tax Free Status – The Club is now a landlord collecting rent and running the business of renting property, so the Incorporated tax free status is totally inappropriate; however a charitable trust can remain tax free.
- Club Rules – The Club’s rules, as currently written, are outmoded, and would have to be totally rewritten if the Club were to continue in its current form.
- Membership – Changes in farming throughout the district, makes it difficult to maintain accurate membership records under contract veterinary practices.
- Winding Up – The Club’s rules state that if the Club is wound up, the assets of the Club must be devoted to charitable or educational purposes in the district. The rules specifically state that no part of the Club’s assets may be applied for the private pecuniary profit of any member or ex-member of the Club.
- Charitable Benefits to the Districts – After careful consideration the Executive has the view that the original objective of bringing a veterinary service to the districts has been achieved. It is therefore appropriate the income generated be distributed to the districts for the benefit of the rural community.
- Wealth Accumulation – plans for its use in the future.
The Executive proposes winding up the Club, and transferring the Club’s assets to the Charitable Trust (once the Club’s final bills are paid). Governed by the Trust deed, it is proposed that twice a year, the Trust would consider applications from community groups and individuals living in, or connected with, the districts, and make grants for charitable purposes (specifically in the areas of education and social, community and family welfare). The first Trustees will be the Executive of the Club and two standard funding rounds will operate per year.
The Executive intends that the Charitable Trust will have a website, where people can find out more about the Trust’s activities and learn how to access grant funding. They would also like to hear from anyone who can assist with any historical information in regard to Malvern Farmers Veterinary Club.
The website: mfvc.org will be live in approximately two weeks.