Shifting Landscapes for Non-profits and Staffing

By Jo Moar - Organisational Consultant

Empowering Not for Profits to Build a Resilient Future

www.mursetter.co.nz

Stats NZ (Non-Profit Institutions Satellite Account data) shows that in 2018, 115,770 registered non-profit institutions (voluntary/community organisations) were serving New Zealand households and employing 117.400 employees.  On average that is one paid employee for each organisation.

However, the overwhelming majority of community organisations (89.2%) did not have any paid employees.  They were staffed entirely by volunteers. It is also estimated that approximately 21.5% of New Zealanders undertook volunteer work at that time.  That’s a staggering 1,133,036 Kiwis, an average of nine volunteers for each organisation.

Organisations belonging to the largest cluster of community groups are in the Culture, Sport and Recreation category which accounted for 44.8% of all community organisations.  This meant that in 2018, 51,833 organisations in New Zealand had approximately 466,502 volunteers.

Unfortunately, at this moment five years on, there are no updated statistics accessible to furnish insights into present trends. The lack of this data poses a challenge in gauging the ongoing developments within the sector. 

Alternatively, we can instead look at the number of underutilised people (which is a broader measure of spare labour capacity than unemployment alone).  This increased by 52,000 to 337,000 over the past year (source Stats NZ, Household Labour force Survey December 2023 quarter). 

Based on this information, it is reasonable to infer that the landscape for non-profits and volunteering may have shifted over the past five years, especially considering the COVID-19 pandemic, demographic changes, political shifts, and economic conditions such as the recession.

Here are some potential implications based on the data and context:

1.      Potential Decrease in Volunteering: Given the aging population and economic challenges, there could indeed be a decrease in the number of people volunteering. Economic pressures, changes in priorities, or health concerns due to the pandemic might have impacted individuals' ability or willingness to volunteer their time.

2.      Impact on Non-Profit Employment: With an increase in underutilised labour, it's plausible that fewer people are being employed by non-profit organisations. The recession and changes in government policies or funding could have influenced the ability of these organisations to hire paid staff.

3.      Increased Strain on Organisations: If there has been a decline in both volunteering and paid employment within non-profit organisations, this could result in increased strain on these organisations. With fewer resources available, they may struggle to meet the needs of their communities or deliver services effectively.

4.      Shifts in Service Provision: Changes in government policies or funding priorities, along with the evolving needs of the population, could lead to shifts in the types of services provided by non-profit organisations. Some organisations may need to adapt their programs or seek alternative sources of support to remain sustainable.

5.      Data Limitations: It's important to acknowledge the limitations of relying on data that is five years old and the absence of updated statistics. Without current data, it's challenging to assess the full extent of these trends and their implications accurately.

In conclusion, while it's reasonable to hypothesise that there may be fewer volunteers and employees in non-profit organisations and that these organisations may be facing increased challenges, further research and updated data are needed to confirm these trends and understand their full impact.

I look forward to seeing updated data out of current surveys being run by different government departments and social enterprises to see how trends have changed.

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