Wednesday, June 27, 2007

KiwiSaver Hurting Non-Profit Research

Digg!
KiwiSaver was created to encourage savings so that people can have more money when they are 65 and older. This is New Zealand's superannuation plan. The government forces businesses to contribute to KiwiSaver and then compensates them with tax breaks. This can work for a business that pays taxes. What about non-profit organisations? They get no incentive but must also contribute. This seems to be a loophole that is not publicised much. Non-profit research in New Zealand just took a 4% hit of all donations forever!

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