How Recessions Hit Non-Profits' Pokie Money

By Jo Moar - Organisational Consultant

Empowering Not for Profits to Build a Resilient Future

www.mursetter.co.nz

When the economy hits a rough patch, it's not just businesses feeling the strain. Non-profit organisations also feel the impact, especially those relying on funds from pokie machines. Here's a look at how recessions shake up the financial landscape for these groups.

Non-profits rely on various income sources to keep their operations running smoothly, and revenue from pokie machines often plays a significant role. However, during economic downturns, people tend to tighten their purse strings, leading to a decrease in gambling activity and subsequently, a drop in revenue for these organisations.

In addition to reduced gambling, economic uncertainty prompts individuals to adopt a more cautious approach to their spending habits. As a result, they may cut back on discretionary expenses like gambling, further impacting the flow of funds into non-profits.

Moreover, recessions have a ripple effect on corporate giving. Businesses facing financial challenges may reduce their contributions to non-profit organisations, including sponsorships and donations. This decrease in corporate support adds to the financial strain experienced by non-profits during tough economic times.

The impact of recessions on non-profits is particularly significant in areas where pokie machine revenue forms a substantial portion of their funding. In such regions, the decline in revenue directly affects the ability of non-profits to carry out their programs and initiatives effectively. When asked about the current status of grant proceeds, Nick Kouloubrakis, CEO of Mainland Foundation says "Pokie Machine income is down 10-12% year on year but application requests are up 20% year on year. We are focusing on funding grassroots sports. Adults can pay their own way."

Despite the challenges, non-profit organisations can adapt to the changing financial landscape. Some may explore alternative revenue streams or implement cost-saving measures to mitigate the impact of reduced funding from pokie machines. Additionally, community support and solidarity play a crucial role during tough times, with increased donations and volunteerism helping to sustain non-profits through the storm.

In conclusion, recessions present significant challenges for non-profit organisations reliant on pokie machine revenue. However, by embracing innovation and community support, these organisations can navigate the financial uncertainties and continue their important work, even in the face of economic adversity.