What impact might the new government have on the charity sector?

06 Dec 2023

While the recently formed government gets underway with its 100 day plan of attack, here at Barrer & Co. we’re reflecting on what the new changes might mean for Aotearoa’s plethora of charitable causes. A new government inevitably means change, but what could this change look like for the fundraising sector?

It’s easy to see how a right-leaning business-focused government, which prioritises growing the economy usually prompts corporate confidence. At the time of writing, business confidence is at its highest level since 2015 – 31% of respondents to the latest ANZ business outlook survey expect the economy to improve over the next 12 months, and headlines such as ‘business confidence skyrockets!’ are not uncommon.

This could be seen as a welcome and significant result of this economic stimulation for the non-profit sector, because businesses have more capacity and motivation to consider their CSR (corporate social responsibility) investments. Now may be the time to pivot from anticipated government funding and instead, consider including corporate high-value donors and major gift programmes in your three year fundraising plans.

In addition to these potential funding changes, the expected increase in disposable income that the ‘squeezed middle’ look to enjoy as a result of tax reductions presents potential for more single or regular giving from those who are able.

The downstream effect of a 6.5% reduction in public sector services, however, may mean a bigger demand on the services provided by charities to plug the gap. As we have seen from the austerity measures of the 2010 UK spending cuts, the impact of this is not to be underestimated.

In terms of government investment in the not for profit sector, Plunket, St Johns, and I Am Hope have been named to receive an increase in funding or support from the new government, highlighting that government funding is still very much available. 

This isn’t a new theme. We all know that to seal the deal with government bids, charities need to demonstrate the return of any investment. It’s not just a case of a charity being effective, now more than ever before, they also need to equip themselves with the tools to demonstrate exactly how effective they are.

Being able to demonstrate the impact of your work goes much further than securing government funding. As we know, it is also crucial to give confidence to donors and build up evidence for both individual and planned giving.

If not done so already, now may well be the time to consider reaching out to reputable third parties that can help quantify your mahi and show the on-the-ground effect of investment.

If you would like help navigating new income streams and want to learn more about how The Fundraising Agency can help you reach your fundraising targets, please get in touch today.

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