With petrol prices expected to rise further in the coming weeks following the closure of the Strait of Hormuz, concerns are mounting about how well New Zealand charities are positioned to cope with a surge in additional people needing support just to get by.

New data from the Catalytic Foundation’s 2026 Community Needs Survey of over 200 charities shows that nearly nine in ten charities are experiencing increased demand. Many charities report that the demand is not only growing, but there has been an exponential growth since Covid, and the pressure expected to worsen as rising fuel costs place further strain on household budgets.

A Perfect Storm of Pressure

Charities on the frontlines are warning of a “perfect storm” as winter, which is traditionally the time of year when charities see the most need, collides with:

• Increasing global instability, including war and fuel supply concerns
• Escalating cost-of-living pressures
• Rising homelessness and housing insecurity, and
• A decrease in grant funding and corporate support for charities

Together, these factors are pushing vulnerable communities to breaking point.

“We are seeing more people than ever before who simply cannot afford to live,” says Teresa Moore of the Catalytic Foundation. “This winter, with fuel and cost pressures mounting, the difference between coping and crisis situations will come down to whether support is available.”

Charities Under Strain

Charities are under increasing pressure. The research shows:

• Funding needs remain the number one challenge for charities
• Staff shortages are rising rapidly
• Demand is outpacing available resources

Channels charities have traditionally turned to for support, like business sponsorships, are no longer providing the security they once did.

Of the 216 responses to the survey, nearly 40% of respondents said that the level of support they were receiving from corporate sponsors had dropped, while only 5 charities said they were receiving a high level of support from corporate sponsors than usual.

When asked why funding relationships with corporate sponsors have ended, charities said that “financial strain on corporate partners” has meant they are no longer able to continue charity support.

Without additional support, many organisations warn they may struggle to keep going.

• “Demand has never been this high — we cannot keep up.”
• “Families are choosing between rent and food.”
• “We are seeing working families needing support for the first time.”
• “Winter will make an already critical situation worse.”

Basic Needs No Longer Guaranteed

The data from the longitudinal survey highlights a worrying shift: what were once short-term crisis needs have become long-term realities. By 2026, cost-of-living pressures have overtaken housing as the most urgent concern, reflecting the cumulative strain on households across the country.

Charities report that increasing numbers of people are:

• Going without food
• Living in unsafe or overcrowded housing
• Unable to keep their homes warm
• Choosing between rent, power, and groceries

Housing remains one of the most persistent and visible issues. Frontline organisations report:

• Growing homelessness
• Increased demand for emergency accommodation
• More families living in unstable or temporary conditions

With winter approaching, these conditions pose serious risks to health and wellbeing.

A Call to Action

The Catalytic Foundation is calling on businesses, funders, and the wider community to act now, before winter arrives.

“This is not a temporary spike, it is a sustained crisis,” says Moore.

“We need urgent, coordinated support to ensure charities can respond to the rising demand and that no one is left without the basics this winter.”

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