Charities struggling for funds

Charities fear they will be hit hard by the change of government and the recession, with some cutting back on services because of falling donations, a survey shows.

Not-for-profit organisations identified fundraising and finances as the biggest challenge for the sector last year.

The research by accounting firm Grant Thornton found the highest level of concern about finances since the survey began in 2003.

However, the recession has boosted volunteer numbers, with Volunteering Canterbury reporting a 22 per cent rise in the year to February.

Barnardos South Island manager Arihia Bennett said the charity had reduced its services because people could not donate at the same level as in the past. The organisation was looking at new ways to attract donations.

Bennett said Barnardos had cut back on a service that allowed supervised time with children for parents with limited access because of restrictions such as court orders.

"It is difficult, because we know if we do not provide the service, the child does not have the opportunity to see their parent," she said.

Brent Kennerley, a Grant Thornton partner who presented the survey findings at a conference in Auckland, said anxiety in the sector over finances was because of the recession and the change in government in 2008.

"These guys are living life from contract to contract and are reliant on government agencies. There are nerves about what the latest government is considering in terms of cuts and more productivity from the same amount of money."

Volunteering Canterbury manager Ruth Gardner said the coming year would be tough for charities. She cited the imminent closure of the 198 Youth Health Centre in Christchurch as an example of the strain in the sector.

"It is hitting some people in the city. We have managed OK, but we are expecting the next year to be harder for fundraising than last year," she said.

"I have heard that some organisations in Christchurch are facing closure. It is getting harder when there are more and more people competing for a smaller pot of money.

"Funding is diminishing and people can't stretch the money any further."

Salvation Army southern divisional commander Clive Nicolson said the economic climate had made it harder to attract donations.

"We're not having to cut services at this stage, but we are looking at everything we do to ensure we get the best value for the dollar," he said.

- © Fairfax NZ News