Working entirely in the association and charity support and advisory area makes us very much aware of the challenges facing many entities. These experiences also align with the latest Grant Thornton NFP Sector survey, suitably subtitled “An instinct for Growth”. The report identifies several key concerns, but also touches at the rapidly changing environment in which we operate.
A recent assignment involving competitor activity among voluntary sector support organisations made us aware of the fragmented state, particularly in the charity sector, with increasing numbers competing for funding, human resource and public recognition. Achieving a high profile in public perception with limited resources and challenged by direct media appeals in support of individual beneficiaries is a hard task. Not unlike small businesses getting attention in a crowded market offers not much hope for growth. It is very noticeable in, but not limited to the health, welfare and rehabilitation sector where a breakdown into smaller units of representation is most noticeable. Cancer is a good example. In spite of the prominence of the Cancer Society as a recognised source of support and research, virtually every subset of the disease has spawned a charity devoted to one or the other subset and strain of this indiscriminating illness. While this trend as a form of prioritising attention is understandable, it also detracts from any major campaign in support of recognition and funding. Achieving meaningful and lasting outcomes demands concerted effort with enabling capability that is frequently out of reach where smaller agencies are concerned. A good example in collective action with the formation of an overarching national body can be seen in the National Foundation for the Deaf that brought together several constituents without depriving them of their existence. Having a coordinating organisation responsible for profiling and fundraising enables its constituents to concentrate on their core activities. This model can be successfully applied in other multi-disciplinary special purpose charities with a common denominator. It is noteworthy that there is a growing inclination for collaboration and mergers in Australia resulting in financially stronger and more capable organisations emerging. There is also an indication of a number of unrelated, non-competing organisations in the social sector sharing accommodation, back-office functions and expertise among professional staff as direct benefits.
Another threat to local charities is foreign based with appeals for money emanating from overseas war and disaster zones with the plight of human victims vividly portrayed in heart wrenching TV footage. New Zealanders are well known for their generosity and foreign aid appeals never fail to be effective. However, in the cold light of reality such overseas remitted amount could be better applied in our own country with evidence of more deserving demands to address social disfunction and deprivation among vulnerable and disadvantaged members of our community and in neighbouring Pacific Island nations. High profile international aid charities also have the advantage of business savvy professional management with access to major media channels to an extent that disadvantages New Zealand charities.
What is bringing this more into focus are the Christchurch and Kaikoura earthquakes, which have immediate and long lasting consequences that a small country like New Zealand can ill afford. The untold misery and long-term effects on affected residents bear witness to the unforeseen risks of natural occurrences that involve costly mitigation to resolve. Small emergency agencies are ill equipped to effectively deal with such situations and it requires concerted effort either from singular numerically strong and well-resourced emergency organisations or a collective of small smaller providers working as an integrated unit under one direction in a joint effort.
All this points to rationalisation and collaboration for better outcomes from concerted action. The NZARC is able to advise charities contemplating an amalgamation without a surrender of identity.
My day for reflection obviously!!
One of the often overlooked reasons for smaller bodies to spin off from a regional or national body is a tendency to focus on the location of the “head office”…………..and also, to become in the eyes of outside observers, inefficient.
While both these are oftentimes difficult to address, regular contact with and reporting on outlying regions covered by the head office can help lessen the feeling they don’t count. Seeking input for tasks undertaken at head office from everyone, and I don’t mean just a newsletter seeking input but pretty much insisting, makes a huge difference.
Secondly, and I address this pretty much to all organisations, take the communications folk away from the media and use their expertise solely for the purpose of helping a senior office-holder present the preferred picture to the public or whoever. Having some communications manager front up does nothing to promote an organization, because outside folk, and I mean outside head office, want to hear or read words from the Boss. For not-for-profits, and especially those nationally or more important again, regionals, the feeling is that if the Boss isn’t capable of fronting up then they shouldn’t be there. The other regular comment is that communications people can’t fix problems or promote/pursue goals. A salary not needed is oftentimes seen as an inefficiency.
Finally, in relation top inefficiencies, is the head office itself. The proliferation of head offices being in the most expensive real estate in town when they could just as easily operate out in the suburbs; having to reside in the flashest building in town; driving a Beemer when a Redline Commodore would do the job just as well; do nothing to maintain and certainly nothing to grow the commitment of the Troops. Some might argue these trappings of “apparent” efficiencies lift the profile of the organization and present success, and that may be so, but we need to be careful here and not get carried away.
Cheers. DonR.