New Year, New Rules
Editorial – Harald Breiding-Buss
Published January 24
Happy new-ish year everyone. As the new government is certainly making a splash and a lot of noise, we can expect some changes this year that will impact community organisations. It’s probably safe to say that the not-for-profit sector overall can have a bit of a tense relationship with National-led governments, and I have been getting some rather gloomy messages from people in the sector. But it’s worth remembering that the Key government in its first term (2008-2011) set new records in social spending, especially of the kind that was made available to community organisations and Maori social services. They also increased marine protected areas, and the ‘Predator-free NZ’ initiative started with the active support of a National-led government.
In terms of your planning, if you are an organisation that is heavily dependent on government funding, it would be prudent to make plans for the possibility that this will reduce or dry up from July or so onwards. This really applies to any government change – maybe get out the old ‘SWOT’ analysis out (Strengths-Weaknesses-Opportunities-Threats) to be prepared. It happens far too often that this isn’t done, organisations get into financial trouble due to changing government priorities, and it’s usually staff that end up missing out on what they’re owed as the organisation struggles in vain to make up the shortfalls from an overall reduced funding pot.
But regardless of political leanings, it is rare for an incoming government not to want to tackle social issues, they just have different ideas of what works. There are always opportunities as well. Traditionally, National-led governments favour job-focused initiatives and those that promote financial self-sufficiency and have been known to put good money behind it.
At least one coalition partner (ACT) has promoted themselves as anti-red tape. This might be the time to ask the government to look into whether all this regulation of the not-for-profit sector is really necessary, particularly the re-registration requirement for Societies and the compliance with accounting standards (NZ is alone in the world with that latter one).
So, let’s keep an open mind, and let’s keep working together for the common good.