The Greymouth Salvation Army is upset at false claims posted on Facebook, urging people not to donate Christmas presents intended for needy families because staff unwrap and sell them.
Captain Avis Owen said it was "absolute nonsense''.
"We are all gutted that such a thing could be said. We do not sell the donated gifts for children in our family store.''
Mrs Owen said the gifts were unwrapped when received, but that was a requirement under the Health and Safety Act.
"We need to open the presents to make sure they are safe and appropriate, and are new ones,'' Mrs Owen said.