The Trust was set up in 1940 by John Robert McKenzie (later Sir John), the founder of the "McKenzies" chain of department stores. From the time the company started in 1910 until it was sold in 1980, one third of the profits were placed in the Trust for the benefit of the people of New Zealand. The total amount of grants made up to and including March 2008 is $62 million.

The Trust has been one of the leading philanthropic organisations in New Zealand, and has supported the establishment and ongoing operation of many community groups.

Rangatira Limited, an investment company also established by Sir John, manages the Trust’s assets.  The Trust also distributes the dividends of the Jayar Charitable Trust, another investment body.