The Non-Profit Sector at a Glance

In New Zealand there are:

60,000 non-profits
Over 1 million volunteers
Volunteers work in sectors spanning education, research, health, sport and recreation, social services, culture, environmental protection, professional and business associations, religious activities and more.
The non-profit sector is a $10 billion industry (operating expenditures for the year ended March 2004 were NZ$6.5 billion, plus volunteer work represented an extra $3.3 billion)¹.

How does this compare internationally? New Zealand has the 7^th largest non-profit sector workforce in the world, making up 10% of the Economically Active Population (EAP) in NZ in 2004. NZ has proportionately more volunteers than Australia, the United States, and its comparative cousin Nordic states.

90% of non-profit organisations in New Zealand rely solely on volunteers, and do not employ paid staff.

A Complex Environment

Many government departments are involved with the non-profit sector in New Zealand, including the Ministry of Social Development, Inland Revenue Department, and Department of Internal Affairs - Charities, which all provide governance and guidance for how not-for-profits should be run. Many non-profits struggle with conflicting demands on their limited time and resources; juggling the needs of their volunteers and executive staff, members interests, Board or Committee governance, funding, achieving tax exemption through becoming a registered charity and other government requirements, marketing and strategic direction, and many other issues.

Funding has recently become a contentious issue as the economic downturn makes it difficult for not-for-profit organisations to receive financial support. This will place many community organisations in jeopardy. There is evidence of consolidation in associations with ageing memberships and a decline in the quality of governance.

Surprisingly, there are not many professional representative organisations available in New Zealand to provide comment on the challenges the non-profit sector is facing. At Business Professional Services Limited, we work with non-profits on a daily basis, and our company has done so for 27 years. We maintain relationships with the NZ Association Resource Centre Trust, Australasian Society of Association Executives, Chartered Secretaries New Zealand, New Zealand Trustees Association and New Zealand Institute of Management.

We welcome media to contact us for informed comment on any non-profit media issues. We also have access to our reliable assistant sources.