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Home / Bay of Plenty Times

Charities welcome rise in public giving

By Jordan Bond
Bay of Plenty Times·
14 Jun, 2015 02:00 AM4 mins to read

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Homes of Hope chief executive Hilary Price says financial pressures have been significant, not least because of the crowded charity sphere. Photo / File

Homes of Hope chief executive Hilary Price says financial pressures have been significant, not least because of the crowded charity sphere. Photo / File

Almost 2000 registered charities are competing for funding in Bay of Plenty but a strong public response has pleased at least two local organisations.

Despite 75 more charities operating in the region compared to five years ago, organisations have reported an increase in public contributions.

This was welcomed by the chief executive of Homes of Hope, a Tauranga-based foster care service for children in need due to neglect or abuse. Hilary Price said funding has been a struggle since the global recession.

"The last five years it's been very tight."

Mrs Price said financial pressures had been significant, not least because of the crowded charity sphere.

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"It's quite extraordinary, the number of charity events and causes that have sprung up."

Despite this, locals have responded generously, said Mrs Price, and she hoped this would continue.

"People of Tauranga rallied to the cause very well," she said. "We need the dollar to be sustainable - a little goes a long way."

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However, one agency warns public generosity may struggle to meet rising costs in the future.

Hospice Eastern Bay of Plenty administrative services leader Lisa Preston was happy with public input but a gap was widening between District Health Board (DHB) funding and the rising costs of caring for patients.

Mrs Preston said DHB funding had largely stagnated while costs had risen, meaning what used to cover 70 per cent of costs would now only cover around half, with the rest having to be picked up by donors. "We actually have a rise in donations, but the problem is it's not keeping up with increasing costs."

Mrs Preston said an aging population also meant more people were requiring care, stretching funds.

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A recently announced $76.1 million Ministry of Health investment into the palliative care sector would mean financial tightness would ease, but it was still not expected to completely cover costs.

Mrs Preston said a focus on bequests would hopefully help bridge the gap between funding and costs.

"That's an area where a lot of people haven't had that conversation with themselves and with their families."

Nationwide, charitable giving is up on previous years. According to the latest figures released by Charities Services, income for registered charities is steadily increasing, up from $13.6 billion in 2009-10 to almost $16.2 billion.

However, this data had been self-reported by charities and was not required to be audited.

The figures included government grants and contracts for delivering public services.

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The education, training and research sector had been one of the big movers, gaining an extra $1.5 billion over the last five years, and taking 41.3 per cent of the nationwide charity income.

The health sector had lost ground. Health causes drew more than 23 per cent of the charitable dollar in 2009-10 ($3.2 billion) but now receives just 17.5 per cent ($2.8 billion).

Fundraising Institute chief executive James Austin said public donations were increasing, despite common sentiment.

"There's been a steady growth in giving. We're doing more."

However, Mr Austin said more could be done. "I personally believe there's room for major growth. By no means is the generosity of New Zealanders over-saturated."

The increase in op shops and second-hand goods stores, such as those run by Hospice New Zealand and The Salvation Army, enables aid to be provided to more New Zealanders, Mr Austin said.

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Not only does store income go back into delivering services, the new and second-hand goods for sale are more affordable for those who need them, something Austin said was a "double whammy" of aid.

Almost 1700 new registered charities have been established in New Zealand since 2009, pushing the current number to almost 27,000.

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Have your say below or email editor@bayofplentytimes.co.nz, go to our facebook page, text 021 241 4568 BOP (message) or write to Private Bag 12002.
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