Recent government funding cuts have compounded the problem for Kiwi charities. Photo: Facebook / Cancer Society
Philanthropists split too many ways and tears in the boardroom as charity funders are overwhelmed with increased calls for help, along with a decrease in donations
As the cost-of-living crisis deepens, the charitable sector is quietly reaching breaking point, with one head of philanthropy reporting up to 15 charities closing their doors already this year.
The demand for support is skyrocketing right now, but at the same time, donations are dwindling, costs are rising, and the government - once a steady lifeline through grants and community funding - is pulling back.
From food banks to mental health services, charities are reporting they are facing growing queues and increasing requests for help every week. And some just can't cope.
"I probably have had experience with no less than 10 to 15 charities closing this year," Perpetual Guardian head of philanthropy Kirsten Kilian-Taylor tells The Detail.
"So, we have seen job cuts, closures, restructuring, and a hugely increased applicant and funding ask from the philanthropy sector over the past year."
RNZ Money Correspondent Susan Edmunds tells The Detail that in a cost-of-living crisis, the numbers simply don't add up for many to give to charity.
"It is fair to say we are donating less to charity," she says. "I see even Givealittle has had less donated on its platform in the 2024 financial year versus 2022, and the number of people donating through payroll giving is down from 2020 as well."
She says some people have cut charity donations as part of a wider anti-consumerism movement to get rid of anything, particularly regular payments going out of their account.
"So, people often think 'I will stop that subscription to the gym', and 'I will stop that monthly donation to a charity' because it has that compounding effect of having that bit more each month, and so I can understand why people do it."
'There have been tears'
Perpetual Guardian, a philanthropic funds manager with more than 700 charities under management, has just put out its annual report on Engaged Philanthropy, which looks at the data on charitable giving over the past 12 months.
Kilian-Taylor tells The Detail that it reads like a tale of two stories.
"First, there is a story of increased giving, particularly through structured philanthropic managed charitable trusts; but alongside that we really wanted to acknowledge the difficult times, with a reduction in funding, charities closing, and the cost of living and cuts in government funding that sit concurrently alongside this report," she says.
She says Perpetual Guardian has seen "doublings of application pools, where we have $200,000 to give and $1.9 million worth of applications".
So how does she decide who gets what?
"I will confess that there have been tears around the board tables ... because we acknowledge there is never enough to go around.
"It's a bit of a science...so we look at their impact, we look at how far their reach goes, we look at their success rates, some of them have had evaluations from organisations like Impact Lab, and they can talk of a return on your philanthropic investment.
Recent government funding cuts have compounded the problem for Kiwi charities.
Many small set-ups, which rely heavily on grants to keep staff employed or projects running, are being forced to scale back operations, merge with others, or close altogether.
"I think the most devastating part of the government pulling funding is that it's like a rug being pulled out from under a lot of these organisations," says Kilian-Taylor.
She says for those who feel they can't give much right now, there's still room for compassion, with volunteering time, donating skills, or leaving something in their will for a charity.
"We try and ask everyone, 'would you consider leaving a gift to charity?' It doesn't matter where you come from, we believe that every little bit, given to a charity, via a will, can help".
As New Zealand faces what many in the sector describe as a "perfect storm", one thing is clear: charities are the social safety net for those who've fallen through every other one, and right now, that net is fraying fast.
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