Financial reporting standards for registered charities were introduced in the year 2015 in New Zealand. Certain charities were also required to have their financial statements audited and reviewed by independent auditors. These legislative changes brought about a paradigm shift in the accounting and reporting practices of charities. The intention behind these changes were to improve public trust in the functioning of charities. This report aims to examine the impact of these reporting legislations on charities in Waikato region. It also aims to analyse the need for improving public trust in charities and the perception of charities on the new auditing requirements. A literature review has been performed to understand the history of charities regulation in New Zealand, the need for new financial reporting standards and the tier system based on which the new reporting requirements have been implemented. A qualitative research was conducted among participating accountants in Hamilton. The results have been analysed and recommendations have provided with an aim to improve the legislative changes implementation process for charities sector, particularly for smaller charities.