Inbound Investors: Unlocking the Full Potential of Philanthropy in New Zealand

By Simon Bowden, Head of Philanthropic Services, Forsyth Barr

Key Points:

  • The Active Investor Plus Visa has been simplified to encourage growth and make investing in New Zealand more attractive.
  • Philanthropic investment of up to $10 million within the new Balanced category could be a major opportunity for New Zealand’s charity sector.
  • Change is required to enable Investor Migrants to optimise donation tax benefits through their home country’s tax system.

New Zealand is gaining attention as a stable and forward-looking country for global investors. Since April 1, 2025, the Government’s simplified settings for the Active Investor Plus Visa have sparked strong interest. By late June, Immigration New Zealand had received 189 applications—more than the previous scheme received over two and a half years. Together, these represent a potential $845 million in investment.

The Balanced category, in particular, offers a unique opportunity for New Zealand charities. Investor Migrants now have the option to allocate their full $10 million investment to philanthropy. To fully realise this opportunity, we need to ensure Investor Migrants can structure their donations tax effectively and without barriers.


Philanthropy in Action: Investor Migrant Case Studies

At Forsyth Barr, we have worked with many Investor Migrants who are already philanthropically active in their home countries. While in other parts of the world it is common for donors to seek advice from financial advisers on structuring their giving, in New Zealand, financial advisers and immigration lawyers have sometimes been reluctant to provide guidance on philanthropic options. This lack of support may have contributed to the historically low uptake of charitable giving under Investor Migrant schemes. In 2022, it was reported that only one Investor Migrant had donated to charities under the previous visa rules.

However, at Forsyth Barr, we have seen firsthand how greater awareness and support can make a difference. Recently, we assisted an Investor Migrant to bring $500,000 into New Zealand for a charitable cause in a tax-effective way from the United States. By working with The Gift Trust, we enabled the donor to secure a tax deduction in the US while ensuring their contribution benefited New Zealand.

An investor in the Investor Migrant Programme entrusted us with a significant initial investment—and, over several years, we helped that investment grow to twice its original value. At the end of the term, the client chose to establish a foundation in New Zealand with the investment returns, creating a lasting philanthropic impact that continues to benefit the country today.

We are currently in discussion with another Investor Migrant who has an established charitable foundation overseas. Following their settlement in New Zealand, they plan to open a New Zealand chapter of their foundation, bringing both financial capital and valuable expertise. This overseas charity has an interesting model for supporting indigenous communities, offering potential insights that could be shared with similar communities here. At the same time, New Zealand’s philanthropic sector could influence their global work, creating a mutually beneficial exchange of knowledge and practice.


A Global Approach to Philanthropy

In most countries, donors receive tax benefits—such as rebates or tax credits—when contributing to charities, provided their donations come from income earned in the same country. Without support, Investor Migrants donating to New Zealand charities will not be eligible for local tax relief because their funds originate offshore.

However, in many jurisdictions, donors can achieve tax advantages by giving through a Donor Advised Fund (DAF) or other charitable vehicle in their home country and requesting that the funds be transferred to a New Zealand charity. Several New Zealand charities have vehicles that support this, for example international foundations for our universities and specific causes such as the Nature Fund.

Giving through a DAF allows donors to retain an advisory role over their philanthropic contributions while optimising tax benefits. For example:

  • A US Investor Migrant can donate funds to a US-based DAF, secure a tax deduction in the US, and then advise the DAF to transfer those funds to a qualifying New Zealand charity, such as The Gift Trust. If the Investor Migrant does not already have a DAF account in the US, they can donate tax effectively to The Gift Trust's US DAF account.
  • The Gift Trust, which meets the New Zealand government’s criteria for philanthropic contributions under the Investor Migrant programme, can receive these funds and allocate them to causes aligned with the donor’s values. As the funding can be distributed over time to a range of causes, this gives the clients time to learn about and understand the New Zealand charitable sector.


Community Foundations are a familiar way of giving in many countries and are already having a significant impact in New Zealand, with 18 now established. 45South Foundation is creating a US-based initiative, Friends of New Zealand, to enable American donors, including those with donor-advised funds, to give tax-effectively to our community foundations. For investor migrants, this could be a powerful way to support the communities where they are based in New Zealand.


The Current Barrier to this Approach

At present, Investor Migrants must establish a New Zealand bank account in their own name and transfer their investment funds into this account. Invest New Zealand then monitors the flow of funds to ensure they originate from the investor. This system prevents Investor Migrants from using DAFs to transfer funds from their home country to New Zealand charities, limiting the attractiveness of the philanthropic investment option.


The Case for Change

We propose that Invest New Zealand allow Investor Migrants to use Donor Advised Funds or other offshore based charities as a legitimate method for making philanthropic contributions. As part of their investment in New Zealand. This would significantly enhance the appeal of the Balanced category for Investor Migrants while ensuring that New Zealand benefits from increased charitable giving.

By allowing this model, Investor Migrants could:

  • Maximise their tax benefits in their home country while supporting New Zealand charities.
  • Engage more actively in New Zealand communities.
  • Increase overall philanthropic investment in New Zealand.

New Zealand has an opportunity to position itself as a leading destination for values-driven investors who want to contribute to meaningful change. By making philanthropy a more attractive and financially viable option within the Investor Migrant programme, we could unlock significant new resources for charitable initiatives across the country.


A Path Forward

Investor Migrants bring not only capital but also expertise and networks that can benefit New Zealand in the long term. By enabling transfer of funds from a globally recognised philanthropic structure such as Donor Advised Funds, New Zealand can remove barriers to giving and encourage greater generosity. This simple policy adjustment would ensure that investors seeking to do good are not just welcomed but fully empowered to contribute to New Zealand’s future.

Simon Bowden is Head of Philanthropic Services at Forsyth Barr. He supports clients in structuring their philanthropic giving and advises New Zealand’s charitable sector on strategic donor engagement.