Media Release
For immediate release

Friday, 27 February 2008

“Change, or face dire consequences” – community sector told

“Work together differently or face dire consequences from the economic downturn” was the challenge put to attendees at the Impact on Communities: Managing the Downturn together workshop held in Wellington yesterday.

The message was delivered repeatedly by members of an invited panel and key speakers at the workshop, which involved 60 community and government sector participants.

“Now more than ever, co-operation amongst non-profits is essential” said NZFVWO President Tony Mayow.

“Whilst businesses may be struggling to maintain jobs, the voluntary sector continues to maintain volunteers for now, but if demand for services goes through the roof and funding goes through the floor, then the sector could face huge problems,” said Mayow.

Leading Wellington economist, Suzanne Snively helped set the scene for participants in a keynote address, pointing out that “New Zealand non-profits and their volunteers contribute 4.9 percent to our nation’s GDP, more than the construction industry. With around 105,340 paid employees, the community sector can help lead productivity and the pace of economic recovery.”

Jointly hosted by the NZ Federation of Voluntary Welfare Organisations (NZFVWO), Philanthropy NZ and the Office for the Community and Voluntary Sector (OCVS), the gathering worked towards identifying practical actions to help the non-profit sector manage its way through the economic downturn.

As a first step, workshop participants agreed to respond to the downturn by exploring how to overcome duplication and gain efficiencies, while encouraging people to continue to volunteer and be employed in the sector. Closer relationships with Government to develop joint initiatives will also be sought.

The facts
New Zealand’s non-profit sector*:
o contributes 2.6% to GDP
o contributes 4.9% to GDP when taking into account volunteer labour
o contains more than 1.2 million volunteers who give more than 270 million hours of unpaid labour to the sector
o has over 97,000 non-profit organisations
o has over 105,000 paid employees – only 10% of all non-profit organisations employ paid staff.

*Non-profit Institutions Satellite Account: 2004, Statistics New Zealand.

ENDS

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