In the world of not-for-profit organisations (NFPs), staying financially stable is challenging and often comes with many highs and lows.
This April 2025, we proudly launched our inaugural Finance Week for Not-for-Profits. Understanding finances, managing money matters, and making informed investment decisions are crucial for effectively matching and managing our often limited resources. Growing our financial knowledge and building our skill level is key in helping to grow and sustain our community organisations – and whilst our governing roles isn’t about getting into the details or weeds, it is about asking great questions and understanding risk when it comes to how our organisations operate.
This event is part of our flagship annual series. We successfully launched Policy Week in 2024, and we are excited to bring it back later this year.
The Essence of Finance Week
Finance Week for Not-for-Profits is all about giving community organisations access to financial information and know-how. The week-long event offered a mix of email drops, videos, articles, and content from various leaders and businesses, all aimed at helping our NFPs/NGOs thrive (goes with the Thrive in 2025, which can also feel like Survive in 2025).
Our sector is currently facing unprecedented challenges. We are experiencing a significant reduction in government funding, limited access to grants from the philanthropic sector, and decreased sponsorship or contributions from the struggling business sector. These financial constraints have unfortunately led to the closure of many charities.
The impact of these closures is profound, creating a ripple effect that diminishes community connections, reduces social interactions, and limits the services provided by our sector.
Government “Pauses” Taxing Charities
Following a short period of consultation on proposed charity tax changes, Finance Minister Nicola Willis this week signaled no changes at this stage to the charitable sector in a pre-budget announcement.
However, Minister Willis indicated significant reduction in funding, which will further cut programmes, services, and initiatives, including limited investment to support innovation for the sector.
What impact will this have? It’s likely to lead to increased competition and unhealthy positioning within our community sector. With limited resources, those who have the means to advocate and lobby often secure higher levels of government investment.
This certainly is a difficult one, but maybe we need to prioritise the organisations that serve our most vulnerable and address the needs and wants of our community, to make sure they are given the support they deserve. This approach will help guarantee that the most critical services continue to be provided. Perhaps we need to take the lead in this effort ourselves, as a sector, and by doing so, we can foster a stronger and more resilient community.
Where to Find Key Information
Here are some information and places to go for funding support:
- Community Governance Aotearoa: Our website offers valuable resources, including case studies for navigating funding challenges (includes some amalgamation stories).
- Government Grants and Local Councils: Many government agencies and community trusts offer grants and funding opportunities. Websites like the Department of Internal Affairs and local community trust websites are excellent starting points for finding available grants.
- Community Trusts and Foundations: Seek out capability and capacity funding to help with your operational costs. Many community trusts offer grants and funding opportunities, look for capability and capacity building for help with governance board training.
Scroll to the end of this page for a full list of links!
Proactive and Planning for Success
When seeking funding the board and team need to be on the same page and all work together. We should adopt a proactive and strategic approach:
- Develop a Comprehensive Funding Plan: Outline the organisation’s funding needs, potential sources, and strategies for securing funds. This plan should include short-term and long-term goals, ensuring a sustainable funding pipeline.
- Build a Strong Case for Support: Clearly articulate the organisation’s mission, impact, and funding needs. Use data and success stories to demonstrate the value of the organisation’s work and the difference it makes in the community.
- Engage with Funders Early: Establish relationships with potential funders before submitting grant applications. Engage in conversations, seek feedback, and build trust to increase the chances of securing funding.
- Diversify Income Streams: Explore various funding sources, including grants, donations, corporate sponsorships. Diversifying income streams reduces reliance on a single source and enhances financial stability.
In these tough times, we all need to step up in our governing and operational roles. The days of passively sitting on the board are over; we need to be active participants, actively finding new innovative solutions and ideas to sustain and grow our organisations. You could reset by using our Board Evaluation tool based on the Good Governance Code developed by-community for-community board roles – the Code will help you find out what’s working and what’s not.
By understanding the funding landscape, connecting with funders’ networks, and adopting strategic approaches we can overcome funding challenges and secure the resources we need. Keep up the great mahi!
Links:
Board Evaluation Tool – free of cost
Finance Week Resource Wrap Up
Finance Minister Nicola Willis pre-budget announcements
Department of Internal Affairs – Funding Opportunities
Community Trust funding (find your region)
Community Foundations Map (find one in your region!)
