Tuesday 14 June 2016

Crucial Non Profits More Precarious

New official government statistics released today, show not for profit organisations, while having continued to grow substantially over the last decade, are in an increasingly precarious position, according to the Centre for Not for Profit Leadership.

Garth Nowland-Foreman, a director of the Centre for Not for Profit Leadership, today said "Overall, it looks like non profits, while crucial to New Zealand economy and society, are more precarious than they have been, for at least a decade and possibly longer."

From 2004 to 2013, the number of non profit organisations has grown by 18% to over 114,100, and the sector's overall 'value-added' contribution to the economy has grown by 38% to $9.4billion per annum (when a notional value for volunteers Is included). The total non profit workforce (paid employees and full-time-equivalent volunteers) has dropped 10%, but at 215,300, it still compares well with other more high profile industries like Tourism (employing 168,000) or Agriculture (employing 40,000).

While the number of paid staff increased 30% (up to 136,750 in 2013), the number of full-time-equivalent volunteers decreased by over 40% (down to 78,500). Garth Nowland-Foreman, a director of the Centre for Not for Profit Leadership, said "Such a massive drop in volunteering leaves the sector in a very vulnerable position. It is highly reliant on volunteers, with 90% of non-profits employing no paid staff." The number of people doing some voluntary work has increased by 21% and now engages 1,230,000 people. However, Nowland-Foreman describes how the bottom has fallen out of the amount of time they volunteer (down 42%).

Nowland-Foreman also notes, "While today's figures show a massive 68% increase in expenditure, it has only been matched by a 65% increase in income. As a result, 7 out of 10 sub-sectors are eating into their reserves by 2013 ('dis-saving' under System of National Accounts terms) compared to only one sub-sector doing so in 2004. While government funding appears to have increased, a large part of this is attributable to better data collection in 2013. Funding from business and philanthropic trusts are both making less of a contribution, leaving non profits more reliant on private donations and sales."

ends