Kiwis need to learn to trust charities

Charities should be allowed to think big and act boldly – instead they get unfair scrutiny, Alesha Hope writes.

Hawke’s Bay is a generous region. There’s evidence of kindness and reciprocity everywhere you turn.

We rally when times are tough and there are many shining examples of this, like Cyclone Gabrielle’s Silt Taskforce and Mates4Life’s commitment to suicide prevention in our province.

We care, deeply. But we also need to trust.

Right now, charities across Aotearoa are under immense pressure.

The need for support has never been higher, bridging big gaps in food security, family violence, youth pathways, housing, health and education.

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These are not fringe issues – they’re fundamental to our community’s wellbeing.

But as the need sharply rises, the resources to meet it continue to shrink away.

Communities have long hoped for central government support in solving some of our greatest social concerns, but the message from the top is clear.

This Government, and successive governments, no matter their colour, will never have the funds to meet all our needs.

In fact, some in power openly state they don’t see it as their job to try. Instead, they tell us it’s up to communities to lead.

And that sounds empowering, until you look at how the charitable sector is treated.

Rather than being adequately resourced and celebrated for stepping in when Government shies away, charities are increasingly scrutinised.

Hawke’s Bay Foundation executive officer Alesha Hope (right) with her predecessor Amy Bowkett in August 2024.

Sometimes, we’re penalised, and at Hawke’s Bay Foundation, we’ve spent time this year pushing back against proposals to tax charitable income that is derived through business or investment activity.

We are a community foundation and our operating model is exactly that – creating wealth for our community by carefully investing donations and bequests, and using income from those investments to support local charities year after year.

For now, the Finance Minister has delayed a decision until at least 2026, which gives us more time to advocate for our case as a not-for-profit with scruples, with integrity, and with the support of our community.

But if these changes do eventually come, they could cripple our sector.

As at the end of 2024, we are honoured to be the guardians of $12 million, safeguarded to support Hawke’s Bay not just today, or tomorrow, but forever. It’s long-term, sustainable philanthropy.

However, as a concept, charities are often treated with scepticism.

The Government’s suggestion that it might deservedly earn revenue from our sector is a case in point.

It’s frustrating, it’s a flawed narrative and it represents a fundamental misunderstanding of how necessary the not-for-profit sector really is.

Charities only exist because there is need, and to meet that need they need to solve serious, complex issues.

Yet, as a community, we struggle to give our charitable sector the licence to grow, innovate and thrive. We want them to do great things, but only if it’s on a shoestring.

We question their overheads, we scrutinise their marketing budgets, and we demand that those working in this valuable sector are paid little more than minimum wage.

When we donate or leave a bequest in our wills, we believe we have the right to query how our dollars are managed.

Imagine if we applied the same scrutiny to business – telling a tech start-up they’re spending too much on attracting talent, or that they need to cut their marketing spend because we don’t like how it’s funded.

In business, we tacitly understand that growth takes investment, that risk and innovation go hand in hand, and that trust fuels success.

Charities should be treated no differently. In fact, given they are doing their level best to solve some of the most pressing issues in our communities, they should be afforded even more licence to think big and act boldly.

For some, there’s a misconception that charities are careless with the funds they accrue, and this is one of the biggest barriers we at Hawke’s Bay Foundation face.

Yes, there have been some high-profile missteps by some big-name charities around the world but they are the exception, not the rule.

The vast majority of charities work tirelessly with transparency, accountability and a deep commitment to solving systemic issues and proving the impact of those solutions. And they do it all with a smile.

If the Government can’t meet the need – and to be honest, it never will – supporting the community falls to our sector.

Hawke’s Bay Foundation is about place-based giving – giving back for the long-term benefit and enhancement of a place and its communities. It’s a proven way for locals to invest in the community they love, backing the people on the ground doing the mahi.

Need doesn’t change with the election cycle. It’s here, it’s growing and it impacts all of us either directly or indirectly.

It’s our job to place trust in our charities and dignify them with the licence to create their vision, assess need and allocate the money to where it’s most necessary. That’s how we generate real, lasting change.