Since we opened our doors almost 10 years ago, Kin has established a strong and enduring track record working with and supporting NGOs. Being values aligned with this sector has been a strong factor in our success and our team finds real meaning working with leaders within these mighty organisations.

One of the many positive changes that have occurred recently is how the not-for-profit sector is being branded, or rebranded. Psychologically, “not-for” is hardly a positive reflection on a sector that gives so much to Aotearoa and our communities.  The team at Kin has embraced the rebrand to the “for-purpose” sector.

The for-purpose sector spans a multitude of organisations of all shapes and sizes.  It delivers services and products that are targeted at supporting individuals, families, and communities who need it most. What has not been recognised for many years is the size of the contribution that the sector makes to the economy. Many, many people work in the sector in either a paid capacity or, and the numbers are huge, as volunteers.

Recently, commissioned and published by JBWere, and produced in partnership with the University of Waikato and authored by Professor Frank Scrimgeour, with Dr William McInerney of JBWere Philanthropic Services, the most up-to-date report into the for-purpose sector has been published.  The report provides a timely, evidence-based assessment of the scale, reach and economic contribution of the country’s for-purpose sector.

Key findings include:

• Nearly 120,000 organisations form the for-purpose sector.
• The sector generates an estimated $40.5 billion in annual revenue.
• It supports around 231,000 paid workers and 930,000 volunteers.
• The sector contributes an estimated $19.1 billion (4.2%) to GDP, rising to $25.8 billion (5.7%) when volunteer labour is included.

These figures make visible a sector whose contribution has too often been under-recognised. The research shows that the for-purpose sector is not peripheral: it is a major employer, a substantial economic contributor, and an essential source of social, cultural and environmental value.

How does all this impact on Kin and other service providers as we seek to bring value-added delivery to the sector? Firstly, the for-purpose sector is truly national.  It is also fractured. In many cases there are multiple organisations supplying same or similar services to meet a particular community need.  Whilst there is often a National Body (as with Autism NZ), individual service providers in different regions are generally doing their own thing. One outcome is that there is a great deal of hiring competition for specialist capability such as fund-raising.

Secondly, there is huge competition for the donor dollar. Whilst each organisation will have its own funding mechanisms, typically these come from central Government, grants, Lotto, pokies, donations, bequests, fund-raising events, etc.  Funds are being squeezed all the time as more organisations look for a slice of the pie.

If there is an upside to the ‘competitive’ environment in which for-purpose organisations operate it is the uplift in governance and oversight. More than ever, Boards and CEOs need to ensure that the service that they offer is being delivered as effectively and efficiently as possible. Changes in various acts are helping to ensure this, particularly the changes to the Incorporated Societies Act.

So, at a time when the economic headwinds are strong, when community need has never been greater, and the pressure for funding is at an all-time high, what part can we each play in contributing to this incredible sector that does so much for so many. For me, it starts with joining the many thousands of others who volunteer their time and expertise and making sure I have actual cash in my pocket when I pass a street appeal. How do you support the NGO sector?