After months of uncertainty, OutLine Aotearoa — the country’s longest-running rainbow mental health support charity — has confirmed it will continue operating, following a “calm and constructive” Special General Meeting (SGM).
According to attendees, the board reported that OutLine is now on a more stable footing after a difficult financial year that raised concerns over solvency and governance. Inland Revenue (IRD) and Charities Services have reportedly agreed on a way forward regarding outstanding compliance matters, with no penalties imposed. An internal investigation into financial management remains ongoing.
The update marks a turning point for the 50-year-old organisation, which faced what its 2025 Annual Report described as “dire” financial circumstances. That report, released ahead of OutLine’s July Annual General Meeting, revealed a $186,000 deficit, depleted reserves, and $100,000 of undocumented credit card transactions. It also warned that OutLine was “at risk of trading while insolvent,” potentially breaching the Charities Act and Incorporated Societies Act.
OutLine, which provides phone and online counselling services to rainbow communities across Aotearoa, acknowledged in its report that “a lack of controls and policy” had contributed to financial strain. Wage costs, koha, and travel expenditure were among the charity’s largest outgoings, while a repayment plan for an outstanding IRD debt had “not been maintained.”
In the months since, the board has taken steps to reduce costs — cutting expenses by 87% in the first quarter of 2025/26. Three new board members were appointed at the July AGM, bringing what the board described as stronger governance experience and community connections.
Community Response and Governance Debate
YOUR EX received strong community feedback following the publication of Michael Stevens’ opinion piece What Happened at OutLine?, which explored the organisation’s financial challenges and leadership issues.
Several readers praised the piece for bringing much-needed transparency, while others urged a broader view of accountability. One reader wrote:
“While the article highlights the outgoing CEO’s tenure as a major factor in OutLine Aotearoa’s financial difficulties, it gives relatively little attention to the role of the board and systemic governance issues. Decisions such as staff restructuring, oversight of spending, and maintenance of financial controls are shared responsibilities, not the sole responsibility of the CEO.”
Other community members raised questions about the legal and financial responsibilities of board members in times of financial distress, particularly around trading while insolvent. Under New Zealand’s Charities Act 2005 and Incorporated Societies Act 1908, board members can be held personally liable for debts incurred if an organisation continues operating while unable to meet its obligations.
Legal experts note that trustees and directors have a fiduciary duty to act in the best interests of the charity, exercise due care, and ensure proper financial management. Failing to respond to clear financial risks can expose board members to personal or reputational consequences — though regulators often consider the steps taken to mitigate those risks once identified.
Looking Ahead
At the SGM, the board confirmed that OutLine’s services — including its national phone and online support lines — will continue. Volunteers and staff were acknowledged for their commitment through what the annual report described as “a period of unsupervised recklessness” and “inexperience of the board.”
Community advocates say the focus now should be on ensuring stability and transparency. “OutLine is a vital lifeline for our communities,” one attendee told YOUR EX. “People depend on it — and the hope is that this marks the beginning of a new chapter.”
YOUR EX has contacted OutLine for comment
