Sector Profiles 2009:

Transcription

1 Palmerston North Sector Profiles 2009: Not-for-Profit Providing you with a better understanding of the different components of the Palmerston North City economy and the contribution each sector makes to the demographic and economic growth of the region. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc.

2 The sector profiles for Palmerston North have been developed by the Palmerston North City Council to provide a better understanding of the different components of the Palmerston North economy and the contribution each sector makes to the demographic and economic growth of the region. Even within the broad industrial sectors of the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 there can be a diverse range of activities undertaken and it is useful to understand which sectors are growing and are likely to grow in the future and their overall contribution to jobs and incomes in the region. The profiles are drawn primarily from Statistics New Zealand data. The text for not-for-profit sector profile document for Palmerston North has drawn heavily on the Statistics New Zealand Non-profit Institutions Satellite Account: 2004 report and several reports produced by the Office for the Community and Voluntary Sector, administered by the Ministry of Social Development. Valuable support and advice was also given by James King, Policy Analyst, Office for the Community and Voluntary Sector, Geraldine Holmes, Palmerston North Community Services Council, and other Council staff. Thank-you to the following people for supplying images (listed in the order they appear): Cancer Society of New Zealand Manawatu Centre Inc; Rotary Club; Lions Club; Manawatu Standard; English Language Partners New Zealand (Formally ESOL; Palmerston North Street Van; Manawatu Chamber of Commerce, Kevin Bills Photography. For further information please contact Peter Crawford, Economic Policy Advisor, Palmerston North City Council, Private Bag 11034, Palmerston North ( peter.crawford@pncc.govt.nz). Published in May 2009 by: City Future Unit Palmerston North City Council Private Bag Palmerston North Phone: Fax:

3 Palmerston North Sector Profile: Not-for-Profit Contents Acknowledgements inside front cover Executive Summary 3 Introduction 5 Defining the Not-for Profit Sector 7 Charities 9 Contribution to Economic Activity 11 Not-for-Profit Organisations in Palmerston North 13 Culture and Recreation 14 Education and Research 16 Health 18 Social Services 19 Environment 20 Development and Housing 21 Tangata Whenua Governance 22 Law, Advocacy and Politics 23 Grant Making, Fundraising and Volunteerism Promotion 24 International 25 Religion 26 Business and Professional Associations, Unions 27 Estimating the Value of Voluntary Labour in Not-for-profit Institutions 29 Measuring Formal Unpaid Work 29 The Promoting Generosity Project 33 Mahi Aroha Maori Perspectives on Volunteering and Cultural Obligations 35 Volunteering in Palmerston North 37 Palmerston North City Council Support for the Not-for-Profit Sector 39 Appendix 1: Summary Tables 47 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 1 Palmerston North Sector Profile: Not-for-Profit

4 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 2 Executive Summary Palmerston North Sector Profile: Not-for-Profit

5 Palmerston North Sector Profile: Not-for-Profit Executive Summary Not-for-profit institutions make a significant contribution to the Palmerston North economy and also play an important role in fostering volunteering and giving by the local community. Until recently there has been very little information on the direct and indirect contribution of the not-for-profit sector, with the majority of economic statistics collected on an activity basis and not based on organisational structure. However, recent research by Statistics New Zealand and the Office for the Community and Voluntary Sector (administered by the Ministry of Social Development) now offers significant insights on the not-forprofit sector. The not-for-profit sector encompasses a broad range of providers of goods and services so is defined by its institution structure and not by activity. While notfor-profit institutions may make profits (surpluses), they do not have profit-making as a goal, do not distribute any profits to their members and are often reliant on the voluntary provision of free labour and resources to operate successfully. The contribution of the not-for-profit sector to society and economic activity goes beyond the delivery of public services to members of our local community. Community participation and volunteering through not-for-profit institutions brings people together in social networks and communities and provides opportunities for people to express their interests, values and culture. Research on volunteering shows that voluntary work produces benefits for both the volunteer and the recipients of voluntary support. Based on the national estimates prepared by Statistics New Zealand for the notfor-profit sector the following estimates have been prepared for Palmerston North: There are estimated to be nearly 1,800 not-for-profit institutions in Palmerston North with a workforce of just over 3,000 employees, almost as many employees as the manufacturing sector; The annual direct contribution to economic activity (GDP) by the sector is estimated to be $105 million; 22,000 Palmerston North people aged 10 years and older were estimated to have volunteered their time during 2007, 33% of the population in that age group; Financial support or donations of goods on an ad hoc basis or to an appeal were estimated to have been made by 31,000 people in 2007 (47% of all people aged 10 and over); The contribution of the not-for-profit sector to society and economic activity goes beyond the delivery of public services to members of our local community... brings people together in social networks and communities and provides opportunities for people to express their interests, values and culture... Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 3 Palmerston North Sector Profile: Not-for-Profit Executive Summary

6 Committed financial support and sponsorship was undertaken by an estimated 25,000 people in 2007 (34% of all people aged 10 and over); Ascribing an economic value to the voluntary labour contributed to notfor-profit institutions adds a further $95 million to estimated economic activity in the city. Data on voluntary activities from the 2006 Population Census suggests a close relationship between the size of a local authority and the level of involvement in voluntary activities. Participation rates averaged over 18% in local authorities with population of less than 20,000 people and averaged slightly less than 13% in local authorities with populations of 100,000 people and over. The Census 2006 data for Palmerston North suggests a higher level of participation in voluntary activity than would be expected based on the size of its population. There do not appear to be any obvious demographic or social factors in the Census which have influenced this higher participation rate in voluntary activities in Palmerston North. In fact, the city could be expected to have a lower participation rate because of its high population in the age group, where participation in voluntary activities is the lowest of all age groups 15 years and over. Significant financial support is provided by Palmerston North City Council for the not-for-profit sector through direct grants and the provision of a broad range of recreational and community facilities in the city. The current annual budget for direct funding support by the Council is $4.2 million. While this support is not exclusively for the not-for-profit sector, it is the primary recipient of the funding. Council provision of community facilities and infrastructure also supports the activities of not-for-profit institutions in the city. It is not possible to completely separate Council support for not-for-profit activities but most commercial users are charged on a user-pays basis to use Council facilities while not-for-profit institutions generally receive discounted rates for the use of these facilities. Significant financial support is provided by Palmerston North City Council for the not-forprofit sector through direct grants and the provision of a broad range of recreational and community facilities in the city. The current annual budget for direct funding support by the Council is $4.2 million. Total annual maintenance and depreciation expenses for community and recreation facilities are $21.5 million but these are offset by annual income of $5.5 million, leaving a net cost in the annual council budget of $16.0 million. These facilities are not established exclusively for the not-for-profit sector but their provision is important in facilitating the activities of many sports, recreation, cultural and social groups operating in the city. These costs are based only on the annual maintenance and depreciation costs for these facilities and do not take into account the financing cost for these investments. 4 Executive Summary Palmerston North Sector Profile: Not-for-Profit

7 Palmerston North Sector Profile: Not-for-Profit Introduction Not-for-profit organisations make a significant contribution to many aspects of New Zealand life that is much broader than the community and voluntary sector. To be considered a not-for-profit organisation a group must be organised, private, nonprofit distributing, self-governing and non-compulsory. While these institutions may make profits (surpluses), they do not have profit-making as a goal. In August 2007, Statistics New Zealand published the Nonprofit Institutions Satellite Account: 2004, which provided the first comprehensive information about the size, diversity and contribution of the sector to New Zealand s economy and society. The satellite account identified 97,000 nonprofit institutions that performed a wide array of functions. Of these, 90 per cent had no and relied completely on volunteers. The sector employed over 105,000 and over one million volunteers. New Zealand has one of the largest nonprofit sectors in the world in proportional terms, and one of the most distinctive. There is no regional or local authority data available for the not-for-profit sector so estimates have been prepared by Palmerston North City Council using national data for the not-for-profit sector and employment share data for Palmerston North. These estimates suggest there are nearly 1,800 not-for-profit organisations in Palmerston North with just over 3,000 employees, almost the same size as the manufacturing sector. The annual direct contribution to economic activity is estimated to be $105 million while the estimated contribution of voluntary labour is a further $95 million. New data demonstrates a high level and breadth of support for the notfor-profit sector, with 2.72 million people in New Zealand, 75.4% of all people aged 10 years and over, supporting the sector in some way in Data from the survey for the Manawatu- Wanganui region showed similar levels of support in the region. New data demonstrates a high level and breadth of support for the not-for-profit sector, with 2.72 million people in New Zealand, 75.4% of all people aged 10 years and over, supporting the sector in some way in Data from the survey for the Manawatu-Wanganui region showed similar levels of support in the region. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 5 Palmerston North Sector Profile: Not-for-Profit Introduction

8 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 6 Defining the Not-for Profit Sector Palmerston North Sector Profile: Not-for-Profit

9 Palmerston North Sector Profile: Not-for-Profit Defining the Not-for Profit Sector In New Zealand, the majority of goods and services are produced by private enterprises that operate to make a profit and distribute it to their owners. The government also provides goods and services to fulfil its political, regulatory and service delivery roles (such as defence, law and order, and the provision of health and education services). In the not-for-profit sector a broad range of goods and services are also produced, with individuals and households combining together in clubs, societies and other types of groups. While these institutions may make profits (surpluses), they do not have profit-making as a goal, do not distribute any profits to their members and are often reliant on the voluntary provision of free labour and resources to operate successfully. The United Nations (UN) Handbook on Non-Profit Institutions in the System of National Accounts (NPISA) definition for the not-for-profit sector covers those entities that meet all of the following five criteria: are organised to the extent that they can be separately identified, are not for profit and do not distribute any surplus they may generate to those who control them, are institutionally separate from government, are in control of their own destiny, are non-compulsory in terms of both membership and members input. The range of not-for-profit institutions is extensive. It includes: museums, performing arts centres, orchestras, ensembles, historical or literary societies, sports clubs, social clubs nonprofit private hospitals, pre-school centres, private schools, social service providers and environmental groups religious congregations trade unions, business and professional associations, political parties advocacy groups that work to promote civil and other rights, or advocate the social and political interests of general or special constituencies community-based associations that offer services to or advocate for members of a particular neighbourhood or community whanau, hapu and iwi-based organisations that provide governance and/...a broad range of goods and services are also produced, with individuals and households combining together in clubs, societies...while these institutions may make profits (surpluses), they do not have profit-making as a goal...are often reliant on the voluntary provision of free labour and resources to operate successfully. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 7 Palmerston North Sector Profile: Not-for-Profit Defining the Not-for Profit Sector

10 or offer services to or advocate for tangata whenua philanthropic trusts, international aid and relief institutions. Government-controlled institutions (including universities, school boards of trustees and district health boards) are not included in the definition. Also not included are producer boards, cooperatives, trading societies, friendly societies and credit unions, on the grounds that they do not meet the not-for-profit criterion. Organisations that are included are kindergartens, racing clubs, community trust boards, industry training organisations and primary health organisations. 8 Defining the Not-for Profit Sector Palmerston North Sector Profile: Not-for-Profit

11 Palmerston North Sector Profile: Not-for-Profit Charities Charities are an important component of the not-for-profit organisations operating in New Zealand. The Charities Act 2005 requires that for an organisation to be registered as a charity it is established and maintained exclusively for charitable purposes; and is not carried out for the private pecuniary profit of any individual. Charitable purpose includes the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community. In addition to the above there must be a public benefit. Many not-for-profit organisations are not registered as charities because their primary purpose does not meet the specific purposes required by the Charities Act. For instance a trade union or business association is likely to operate on a not-for-profit basis but the benefits and services it offers are restricted to members of the organisation. The Charities Commission had registered 18,500 charities by the end of January 2009 and estimates there will be around 25,000 28,000 charities registered when the registration process is completed. This is significantly lower than the estimate for close to 100,000 not-for-profit organisations operating in New Zealand. Charities are an important component of the not-for-profit organisations operating in New Zealand. The Charities Act 2005 requires that for an organisation to be registered as a charity it is established and maintained exclusively for charitable purposes... Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 9 Palmerston North Sector Profile: Not-for-Profit Charities

12 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 10 Contribution to Economic Activity Palmerston North Sector Profile: Not-for-Profit

13 Palmerston North Sector Profile: Not-for-Profit Contribution to Economic Activity In the year ended March 2004 it is estimated that not-for-profit institutions contributed $3.64 billion to GDP 1, 2.6% of New Zealand s total GDP. While there were not-for-profit institutions operating in almost every industry sector, there is a high concentration of not-for-profit institutions and economic activity in health and community services, cultural and recreational services and personal and other services (religious organisations, interest groups, unions, business organisations for example). In October ,000 not-for-profit institutions were identified. The value of voluntary labour (or formal unpaid work) in not-for-profit institutions in New Zealand was estimated to be $3.31 billion for the year ended March If this is included with the direct economic impact the total contribution of not-for-profit institutions to GDP is estimated to be $6.95 billion, 4.9% of total GDP. It was estimated that more than one million people volunteered for one or more not-for-profit institutions in More recent estimates suggest that 2.7 million people in New Zealand aged 10 years and over volunteered their time in The value of voluntary labour (or formal unpaid work) in not-for-profit institutions in New Zealand was estimated to be $3.31 billion for the year ended March Statistics New Zealand (2007). Nonprofit Institutions Satellite Account, Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 11 Palmerston North Sector Profile: Not-for-Profit Contribution to Economic Activity

14 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 12 Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

15 Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North Official statistics for employment and economic activity are based on an industrial classification for the activities that the organisations undertake and not on the institutional structure of the organisations. Until the development of the Nonprofit Institutions Satellite Account by Statistics New Zealand and the Office for the Community and Voluntary Sector, New Zealand had no official way to measure in a consistent framework the quantity and economic value of activities undertaken by not-for-profit institutions. While these estimates are available at a national level no estimates have been made for employment or economic activity in not-for-profit organisations at a regional or local authority level. The best we can do is to pro-rata the national data to the local region to estimate the size of the sector in the local economy. The following estimates prepared for Palmerston North are based on a pro-rata distribution of the national not-for-profit estimates using the ratio of Palmerston North employment to national employment. The city employment ratio has been used in preference to the city population ratio because it appears to better reflect the scale of economic activity which occurs in Palmerston North. A significant number of people commute to work in Palmerston North from the surrounding region so the city s share of national employment (2.4%) is significantly higher than its population share (1.9%). The list of not-for-profit organisations registered with the Companies Office with a Palmerston North address covers a range of organisations that service a wider community than just the Palmerston North population. It is recognised that each region will have different sector shares from the national data but in the absence of regional data the estimates below provide a best guess of the size of each sector in Palmerston North. The list of not-for-profit organisations registered with the Companies Office with a Palmerston North address covers a range of organisations that service a wider community than just the Palmerston North population. Notes: Salaries and wages are the largest contributor to GDP so there is usually a close correlation between the number of paid employees and contribution to GDP. Data on the sale of goods and services can include government contracts. Statistics New Zealand was unable to distinguish between government and other contract income for notfor-profit institutions. The largest sectors, and their constituent institutions are: Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 13 Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

16 Culture and Recreation This is the largest group by the number of institutions in the not-forprofit sector. Sub groups within the culture and recreation group include: Culture and arts consists of institutions involved in media, communications, visual arts, architecture and performing arts; historical, literary, heritage and humanistic societies; museums; toy libraries; and zoos and aquariums. Sports encompasses the full range of amateur sports clubs, physical fitness, sports competition services and events. This includes a diverse range of grassroots sporting clubs, sports centres and surf lifesaving clubs. Recreation and social clubs includes institutions providing services to members, recreational facilities and local communities. Some examples of these institutions are local country clubs, men s and women s clubs, Lions, Zonta and Rotary clubs, and Returned Services Associations. Supporting services for culture and recreation where actual participation in culture and recreation are not the primary activities. Most not-for-profit institutions in this group (94%) rely entirely on volunteers to maintain their operations. Although culture and recreation has the most institutions in the not-for-profit sector, their economic contribution is only the fifth largest amongst all not-for-profit institution activity groups. Tree planting by a group of Rotary Club volunteers Image Courtesy of Rotary Club The sports subgroup has the highest number of paid employees (54%) and the highest contribution to GDP (56%) within the activity group. The majority (91%) of sports institutions do not employ, which indicates how important volunteer labour is as part of the ongoing existence of these institutions. A 2007 Sport and Recreation New Zealand (SPARC) report highlighted the volunteer contribution to the sport and recreation sector. According to the report, the sector is dependent on approximately 500,000 volunteers. This is approximately fifty-six volunteers for every paid employee. 2 The sale of goods and services (includes ticket sales to events such as sport games, theatre, plays, dance shows, and art exhibitions) accounts for 61% of income, 29% comes from membership subscriptions and donations and 7% from government grants. Sports was the only subgroup for which full membership data was available. The information in the table below shows the distribution of sporting memberships across most major sports disciplines, along with an overall 5 percent increase in sports memberships between 2001 and The large number of memberships shows that sports clubs are an integral part of the lives of many New Zealanders. However, it is recognised that membership also plays an important role in many other cultural and recreational institutions even though that information is not readily available. 2 SPARC (2007). Finding and Keeping Volunteers: What the research tells us, to Guides/How to promote volunteering/finding and Keeping Volunteers New Zealand.pdf 14 Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

17 membership of sports nonprofit institutions 2001 & 2002 sport Number of members Golf 166, ,080 Netball 122, ,069 Rugby 119, ,623 Soccer 109, ,000 Cricket 94, ,759 Touch 64,426 94,291 Indoor Sports 65,477 77,065 Bowls 61,349 60,404 Tennis 42,419 42,312 Hockey 37,449 39,574 Yachting 32,162 31,338 Others 414, ,711 Total 1,335,162 1,396,226 BBQ built by Lions Club volunteers at Ashhurst Domain Image Courtesy of Lions Club Source: Sport and Recreation New Zealand (SPARC). Estimates for the Culture and Recreation Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Culture and Recreation Culture and arts Sports Other recreation and social clubs Support and ancillary services ANZAC Parade Image Courtesy of Manawatu Standard 15 Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

18 Education and Research The education and research group includes kindergartens, playcentres, kohanga reo, private primary and secondary schools, private tertiary providers, other education providers such as organisations teaching English for speakers of other languages, and research institutions. Public education institutions such as universities, colleges of education, polytechnics, state and integrated schools, however, are not included. Education and research makes up 16% of the total not-for-profit institution contribution to GDP. In the context of the wider education sector (including not-for-profit, for-profit, and state education), it is interesting to note the relatively small size of not-forprofit institution education and research. In 2004, the entire education sector contributed $5.65 billion to GDP, while not-for-profit education and research contributed $495 million, or 9% of the education sector s GDP. The main reason for this relatively small contribution is that the majority of New Zealand s education institutions are within the government sector. This contrasts with comparable countries such as Australia, Canada, the UK and the USA, where not-for-profit education is generally much more widespread. It is also important to note that not-for-profit research is a relatively small sector in New Zealand, with many research institutions being either profit-making companies or within the government sector. One to one tutoring Image Courtesy of English Language Partners New Zealand (Formally ESOL) The education and research not-for-profit sector is dominated by smaller, non-employing not-for-profit institutions. Within this activity group, 50% are in the education and research support and ancillary services subgroup. Many of these are parent teacher, or home and school associations, school hostels and school bus committees. Education and research is the second largest employer among not-for-profit activities after social services. The early childhood education subgroup makes up just over one quarter (27 percent) of all not-for-profit institutions in education and research. Early childhood education has a high level of employment and nearly half of all institutions in this subgroup employ. Those that do not employ staff include parent-led groups, and kindergartens whose teaching wages are paid by a central body. Primary and secondary education comprises mainly well-established schools, some of which are quite large. The top 10 primary and secondary schools employ 2,233 staff, or 52% of the total staff for this sub-group, significantly pulling up the average for schools that employ. The contribution to GDP of this subgroup is the largest subgroup in the education and research group because of the relatively high number of. Tutor Training Image Courtesy of English Language Partners New Zealand (Formally ESOL) 16 Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

19 Estimates for the Education and Research Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Education and Research Early childhood education Primary and secondary education Higher education, other education & research Support and ancillary services The remaining subgroup (higher education, other education and research) covers a wide range of not-for-profit institutions that consist of either post-school education, research or specialist education. Larger institutions include apprentice training schemes, work in the community programmes, theological colleges and research institutions, while the smaller not-for-profit institutions are diverse in nature. Although 77% of not-for-profit institutions in education and research are nonemploying, this is considerably lower than the not-for-profit institution average of 90%. Government grants make up 39% of the income of the sector while sale of goods and services (such as private school fees) contribute 48%. The sale of goods and services component also includes government funded contracts for private schools. Kohanga Reo Image Courtesy of Manawatu Standard 17 Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

20 Health The health group encompasses a wide range of health services as well as private hospitals run on a not-for-profit basis. These include rehabilitative services, nursing homes, emergency medical services, outpatient health services, public health education, primary health services and mental health services, including psychiatric hospitals, crisis intervention and outpatient treatment. The health group also includes primary health organisations (PHOs), which have been progressively established in response to the government s Primary Health Strategy (2001) and are responsible for the co-ordination and delivery of primary health services care to defined populations. There has also been increased funding for health programmes through Maori health providers, many of which operate on a not-for-profit basis. It should be noted that while nursing homes are classified to health, retirement villages or accommodation for the aged are classified under services for the elderly in social services. In practice it is not always easy to differentiate between rest homes / retirement villages that primarily provide accommodation services and those that provide primarily hospital care services. There is also the potential for overlap between health and social services with regard to mental health services. Generally speaking, institutions that provide treatment for those experiencing mental health issues are classified within health, while services providing primarily accommodation, information and support to individuals and families are placed within social services. Relay for Life Image Courtesy of Manawatu Standard While health not-for-profit institutions make up only 2.3% of all not-forprofit institutions, paid employees in the health group number more than 15,090 (14% of total not-for-profit institution employment). There is a strong correlation between paid employment and contribution to GDP, meaning that the health group is the fourth largest contributor to GDP across the 12 not-for-profit institution activity groups. The health activity group s ranking for number of employees and GDP is high, from relatively few not-for-profit institutions. This is explained by the fact that hospitals employ more staff than most other not-for-profit institutions. The income of not-for-profit institutions in the health group is dominated by sales of goods and services, with 80% coming from this source. The major component of sales is contract payments from district health boards. Although a proportion of income may be for private treatment, the majority of health care is funded by government. Most government grants in this activity group are treated as sales of goods and services. Relay for Life Image Courtesy of Manawatu Standard Estimates for the Health Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Health Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

21 Social Services Social services provide the largest contribution to GDP (23%) of all the not-forprofit activity groups and 30% of the employment. This sizable group includes a vast range of social service providers, emergency and relief services and institutions providing income support and maintenance. Examples are early intervention services, services for the disabled, and elderly, food banks, self-help groups and other personal social services such as temporary shelters for refugees. Also included are institutions providing income support and maintenance to those in need. Many social services are provided by religious institutions sometimes as standalone entities and sometimes as part of an ecclesiastical structure. Iwi-related social services are an important part of this group. Well over half of the group revolves around community care services, such as accommodation for the aged, and residential and non-residential facilities. As noted in the previous section, while retirement villages or accommodation for the aged are classified under services for the elderly in social services, nursing homes are classified to the health activity group. Payments by government to social service not-for-profit institutions have generally been treated as sales in the account. A major component of sales to social services is contract payments from district health boards and other government departments. Estimates for the Social Services Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Social Services Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

22 Environment The environment group is split between the environment subgroup and the animal protection subgroup. The environment subgroup includes institutions that promote pollution abatement and control, natural resource conservation, and the protection and beautification of open spaces. The animal protection subgroup includes institutions concerned with animal protection and welfare, wildlife preservation and veterinary services. The environment group is dominated by two types of institutions: those that serve farming interests, and those that are more traditionally associated with environmental and wildlife protection, including animal welfare. The environment group is financially dominated by the Animal Health Board and farmers veterinary cooperatives. However, the majority of institutions are those traditionally seen as grassroots environmental or animal welfare groups. Environment is a relatively small group, being slightly greater than 1% of the number of institutions, the number of employees, and contribution to GDP for all not-for-profit institutions. Much of the contribution to GDP comes from the large employing not-for-profit institutions, including national and international environmental institutions, the Animal Health Board, and farmers veterinary cooperatives. While there are 18 institutions employing 20 or more people, environment is very much a grassroots activity group. Ninety-two percent of institutions rely on volunteer labour alone to function, and most of these are communitybased environmental protection institutions. Farm Forest Image Courtesy of Manawatu Standard Estimates for the Environment Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Environment Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

23 Development and Housing The development and housing sector consists of institutions involved with social, community or economic development; housing; and vocational guidance and training. Social and community development covers institutions working towards improving the quality of life within communities and institutional infrastructure and capacity to improve general public well-being. This includes community centres, community development trusts, neighbourhood support groups, employment services, and those tangata whenua governance institutions that manage the affairs of iwi, hapu and marae. Economic development includes activities such as tourism boards and business associations that are set up for the purpose of promoting business development in a specific geographic area. Vision Manawatu and Destination Manawatu are examples of two local organisations working in this sector. Housing activity includes those institutions involved with development, management, and leasing of housing. Homeless shelters and supported housing are included in social services. The majority of income is generated from the sale of goods and services. Government grants are the second largest contributor to income, contributing just over 24%. All payments from government to nonprofit institutions in this group are counted as grants. Government funding is provided for community resources, for the provision of employment and housing services and compensation payments to Maori tribes. Nonprofit institutions providing housing and education receive funding from government in the form of contracts while community facilities are often built with government grants. Estimates for the Development and Housing Sector in Palmerston North Shepherds Rest Image Courtesy of Palmerston North Street Van Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Development and Housing Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

24 Tangata Whenua Governance The units identified as part of tangata whenua governance are limited to those institutions with the text marae in their name that are not logically in another group. It also includes those institutions listed in the Maori Fisheries Act This does not include traditional governance structures, such as runanga, that have existed for hundreds of years. The tangata whenua governance group does not represent all Maori not-forprofit institutions. Maori not-for-profit institutions have been included in the group that best represents their primary activity. Examples include marae health centres (in health), and national Maori business associations (in business and professional associations, unions). Statistics New Zealand has classified only a small number of institutions to this group. Further work on the classification of institutions is expected to result in more not-for-profit institutions being classified in this group. Estimates for the Tangata Whenua Governance Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Tangata whenua governance not estimated St Michaels Image Courtesy of Manawatu Standard 22 Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

25 Law, Advocacy and Politics Law, advocacy and politics not-for-profit groups are involved in the promotion of the interests of groups within society, ranging from ethnic associations to community law centres to political parties. The particular focus of institutions within law, advocacy and politics is to give a group representation within the public arena providing benefits such as social cohesion, legal protection, or a voice to parts of society that may not be well represented otherwise. While many not-for-profit institutions advocate, provide legal services or have political agendas, this may not be their primary activity. In such cases they may be found elsewhere, for example within the social services group or the environment group. There are diverse not-for-profit institutions in law, advocacy and politics. Most of these are part of the civic and advocacy subgroup, and include special-interest advocacy institutions, ethnic associations, students associations, and driver service associations such as the New Zealand Automobile Association. The law and legal services subgroup comprises prisoners aid institutions and community legal centres, as well as consumer advocacy institutions. The subgroup of political institutions is relatively small and follows the political cycle, meaning that financial flows fluctuate considerably from year to year. Ethnic associations promote the interests of or provide services to members belonging to a specific ethnic heritage. This includes institutions such as Scottish societies or Pacific community groups which focus on national or regional culture. Ninety-one percent of not-for-profit institutions in the law, advocacy and politics group employ no staff. These are usually trusts or foundations who primarily advocate, lobby, or otherwise advance the interests of a specific group. Ethnic Exhibition Image Courtesy of Manawatu Standard Estimates for the Law, Advocacy and Politics Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Law, Advocacy and Politics Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

26 Grant Making, Fundraising and Voluntarism Promotion Grant making foundations have significant financial flows and include community trusts, gaming trusts and various other philanthropic trusts. These are institutions that focus solely on managing and distributing funds to community groups. This activity group also includes fundraising institutions that have similar attributes to grant making institutions. The main difference is that a unit is classified as a fundraiser if they raise funds for one specific authorised purpose, while an institution is classified as a grant maker if they distribute their funds to various purposes. Voluntarism promotion includes institutions that recruit, train and place volunteers while promoting volunteering generally. The biggest sources of income for nonprofit institutions in this activity group are the proceeds from gaming machines and interest on investments. Many trusts rely on interest generated from large lump sum investments to sustain their grant making programmes. These may be established and guided by statute, like the community trusts, or by personal or corporate endowment. A feature of this group is the large number of donations that it makes to other institutions. This includes the distribution of profits from gaming machines, and the distributions from grant making schemes run by not-for-profit institutions. Image Courtesy of Manawatu Standard Estimates for the Grant Making, Fundraising and Volunteerism Promotion Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Grant Making, Fundraising and Volunteerism Promotion 24 Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

27 International The activities of institutions with an international focus are often highlighted in the wake of high profile tragedies, such as natural disasters, providing aid to refugees and the injured. However, the activities of international institutions go beyond emergency aid and relief. They also include development assistance associations, friendship and exchange programmes, international human rights and peace advocates. The international activity group only includes those institutions focused on activity internationally, not in New Zealand. This means most of the institutions classified here are national bodies. Many entities will have several institutions including a national body and several local branches. The low level of GDP contribution reflects the nature of the international activity. In general the funds raised in New Zealand are employed in the production of goods and services overseas. These institutions receive substantial donations from New Zealanders but these funds do not increase the production value of the New Zealand economy. Image Courtesy of Manawatu Standard Estimates for the International Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) International Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

28 Religion Religious worship is one of the few areas of society in which all institutions are not-for-profit. Religion not-for-profit institutions are outnumbered by only the culture and recreation and social services activity groups. The contribution of religious bodies goes beyond worship and proclamation. Religion includes all institutions that promote or administer religious services and rituals, such as churches, temples and their governing bodies. It includes also those supporting services such as missionary societies, evangelistic groups like open air campaigners, units distributing religious material and centres for religious education outside of the education activity group. The social and economic influence of religious institutions extends into other activities such as education, health and social services, where many institutions have clear religious affiliation. In many cases, involvement in these other activities is one aspect of their worship and could be considered religious activity. However, where a separate institution has been set up for the purpose of education, health or to provide social services, it is recognised within the activity of education, health or social services respectively. In education and research, 7.5% of institutions on Statistics New Zealand s Business Frame had names that clearly identified them as being affiliated with a religious body. This number was almost 10% in social services. The true level of religious affiliation may be much higher than that reported but this cannot be confirmed from the data sources. Almost 70% of the contribution to GDP from the religion group comes from local places of worship. Regional and national administrative bodies add a further 20% while associated institutions contribute the remaining 10%. Choir Image Courtesy of Manawatu Standard Estimates for the Religion Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Religion Not-for-Profit Organisations in Palmerston North Palmerston North Sector Profile: Not-for-Profit

29 Business and Professional Associations, Unions The business and professional associations, unions group brings together three distinct types of membership institutions. The commonality lies in the roles they play in promoting, regulating and protecting the interests of their member constituents. It includes institutions that promote, regulate and safeguard interests of businesses, professionals and workers, such as trade unions and chambers of commerce. Although this is one of the smaller activity groups, the influence of these institutions touches all areas of employment. Business associations work to promote special branches of business. Their members are primarily from institutions, or individuals representing institutions in their professional capacity. Business associations may have a regulatory function and often include professional registration boards. In contrast, professional associations focus on supporting individuals whose commonality is their professional role. The activities of professional associations include marketing, research, industry and goods promotion, industry training, public relations and lobbying as well as some statutory obligations undertaken under Acts of Parliament. Trade unions are similar to professional associations but their focus is on individuals as employees in a specific industry. The development and housing sector also includes some business associations, including associations set up for the purpose of promoting business development in a specific geographic area. The activity of these groups is one of economic development not the protection of a specific branch of business. Team from Case Study Competition, Chamber of Commerce Image Courtesy of Manawatu Standard Three-quarters of the income for business and professional associations and unions comes from the sale of goods and services. Donations, memberships and grants provide 17% of the income. All payments from government to institutions in this group are treated as grants. Trade unions rely heavily on membership subscriptions, with 90% of their income coming from this source. Image Courtesy of Manawatu Chamber of Commerce Kevin Bills Photography Estimates for the Business and Professional Associations, Unions Sector in Palmerston North Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Business and Professional Associations, Unions 27 Palmerston North Sector Profile: Not-for-Profit Not-for-Profit Organisations in Palmerston North

30 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 28 Estimating the Value of Voluntary Labour in Not-for-profit Institutions Palmerston North Sector Profile: Not-for-Profit

31 Palmerston North Sector Profile: Not-for-Profit Estimating the Value of Voluntary Labour in Not-for-profit Institutions Voluntary labour is significant in the not-for-profit sector but until recently it has been difficult to assess the economic benefit that is generated by voluntary labour. In the year to 31 March 2004 it is estimated that over 1 million New Zealanders aged 15 and over volunteered time for one or more not-for-profit institution. Volunteers therefore significantly outnumber the paid workforce of 105,000 employees in the sector. The value of voluntary labour (or formal unpaid work) in not-for-profit institutions in New Zealand was estimated by Statistics New Zealand to be $3.31 billion for the year ended March Including this amount in the economic accounts almost doubles the contribution of not-for-profit institutions to GDP to $6.95 billion. This addition of formal unpaid work increases the contribution to GDP of not-for-profit institutions from 2.6% to 4.9%. The value of voluntary labour (or formal unpaid work) in not-for-profit institutions in Palmerston North is estimated to have been $95 million for the year ended March Including this amount in the economic accounts increases the contribution to GDP of not-for-profit institutions in the city to $200 million. Measuring Formal Unpaid Work The Statistics New Zealand Time Use Survey 1998/99 was the first comprehensive survey which attempted to measure the time use for an average person. This was updated through to the March 2004 period using data from the 2001 and 2006 Census. There were a significant number of people (46%) who volunteered for more than one organisation: Number of institutions worked per volunteer The value of voluntary labour (or formal unpaid work) in not-for-profit institutions in New Zealand was estimated by Statistics New Zealand to be $3.31 billion for the year ended March Number of Institutions percentage of volunteers or more 6 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 29 Palmerston North Sector Profile: Not-for-Profit Estimating the Value of Voluntary Labour in Not-for-profit Institutions

32 Using this data on voluntary activity in multiple organisations it was estimated by Statistics New Zealand that not-for-profit institutions filled 1,727,400 positions in 2004 using voluntary labour. Estimates for the economic value of the hours volunteered were calculated using the average hours worked in paid work in 2004 (38.8 hours). The economic value used for formal unpaid work was based on the concept of replacement cost, based on an estimate that an activity in unpaid work is worth the same amount as it is in formal employment. All unpaid activities were assigned the wage rate of the corresponding paid occupation. Each wage rate was then weighted by the number of unpaid hours worked on that activity, and then aggregated to give an overall average volunteer wage rate of $12.15 an hour as at 31 March In comparison, the minimum wage rate as at 31 March 2004 was $8.50 an hour. formal unpaid work outside the home - March 2004 year Activity group TOTAL HOURS WORKED (000) FULL-TIME EQUIVALENT VOLUNTEERS (NUMBER) ESTIMATED ECONOMIC VALUE $(000) Māori-based committee, 27,878 13, ,674 organisation, grouping, etc Disability support and 11,198 5, ,243 health-related service Social support and assistance 22,746 11, ,783 Education 40,089 19, ,332 Community safety and protection 22,858 11, ,147 Leisure and recreation 78,241 38, ,926 Member benefit groups 62,106 30, ,179 Other 5,115 2,532 62,687 Total 270, ,799 3,311,970 The time use activity groups differ from the economic groupings used for notfor-profit institutions economic activity: Māori-based committee, institution, grouping etc covers any unpaid work related to the propagation and support of Maori language and culture. Community safety and protection includes environment groups, animal protection institutions, 24-hour emergency services and community wardens. Leisure and recreation includes institutions with a sporting, cultural or recreational focus. Member benefit groups is a catch-all activity group. The general focus is the enhancement of their members, if they are not already included in any other activity group. The group includes religious institutions, service clubs, political parties, and professional associations and labour unions. 30 Estimating the Value of Voluntary Labour in Not-for-profit Institutions Palmerston North Sector Profile: Not-for-Profit

33 Unpaid work was measured in the 2006 Census using three broad categories: unpaid work that occurs within the household; unpaid work that occurs outside the household; and other voluntary work through an organisation, group or marae. The 2006 Census data for other voluntary work is considered to underrepresent the total level of participation in voluntary work. This may be due to the Census question, which asks only about voluntary work during the four weeks preceding census night. The more recent Nielsen Media Research survey for the Office for the Community and Voluntary Sector (a division of the Ministry of Social Development) in 2008 suggests that 34% of people volunteered their time during However, the 2006 Census data is useful for understanding the demographic and economic factors which influence participation in voluntary activities and is the only data available at a local authority level Females were more likely than males to have participated in voluntary work in the other voluntary work category 17% of females and 14% of males. People who work part-time were more likely to participate in voluntary work this explains part of the higher participation rate for females. The self-employed and employers were more likely to participate in voluntary work than employees. People in the age group were the most likely to be involved in voluntary work. Rates were also high for those aged years and 65 years and over. Participation was the lowest in the age group, a major component of the Palmerston North population. People who identified as Maori were more likely to have participated in voluntary work. The lowest participation rates were for the Asian, Middle Eastern, Latin American and African ethnic groups. Identification with a religion influenced the likelihood of people undertaking voluntary work, with 19% of those who identified themselves as Christians undertaking voluntary work compared with 11% of those who identified no religion. There is a correlation between the population of the local authority in which people live and their level of participation in community work. Participation rates are higher in small communities and the lowest in the large cities. Participation rates averaged over 18% in local authorities with populations of less than 20,000 people and averaged slightly less than 13% in local authorities with populations of 100,000 people and over. 31 Palmerston North Sector Profile: Not-for-Profit Estimating the Value of Voluntary Labour in Not-for-profit Institutions

34 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 32 The Promoting Generosity Project Palmerston North Sector Profile: Not-for-Profit

35 Palmerston North Sector Profile: Not-for-Profit The Promoting Generosity Project Established in 2007, the Promoting Generosity project aims to develop and implement a multi-sector plan to encourage giving and volunteering. The project brings together people from the government, nonprofit and business sectors to explore ways of encouraging individuals and businesses to participate in their communities and by giving time, money or in-kind donations. The project is jointly-led by Philanthropy New Zealand, Volunteering New Zealand and the Office for the Community and Voluntary Sector (OCVS). The project working group was formed to work towards a vision of society where: giving is the norm it s what we do everybody is recognising and celebrating generosity in all its forms: giving time, money, in-kind, or through small acts of kindness giving behaviours are understood, taught and promoted volunteering and giving are supported by government, business and the community inclusive and engaged communities are built and sustained we are working together individuals, organisations and sectors. New data demonstrates a high level and breadth of support for the nonprofit sector, with 2.72 million people, 75.4% of all people aged 10 years and over, supporting the sector in some way in Many people support more than one subsector, and support in multiple ways. A wide definition of support captures more than just giving and volunteering, and includes other activities such as purchasing products....the Promoting Generosity project aims to develop and implement a multi-sector plan to encourage giving and volunteering... brings together people from the government, nonprofit and business sectors... to participate in their communities and by giving time, money or in-kind donations. 3 Office for the Community and Voluntary Sector. (2008) How do New Zealanders give? Towards an understanding of generosity in Aotearoa New Zealand. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 33 Palmerston North Sector Profile: Not-for-Profit The Promoting Generosity Project

36 Combined levels of types of support for the community and voluntary sector in the previous 12 months, estimated numbers of people aged 10 years and over Volunteered million Donated Money or goods to an appeal million 249,000 only volunteered 152, , , ,000 only donated goods/ money 306, ,000 only made direct donation/sponsorship Direct donation or sponsorship million SOURCE: Nielsen Media Research Panorama Jan-Dec 2007/Nick Jones & Associates Ltd Consumer who Cares. Data from the survey for the Manawatu-Wanganui region showed very similar levels of generosity to the national data. While the sample for the region was small there appears to be higher levels of support (volunteering of time and financial support) in areas related to the health care and social assistance sector, an area of significant strength in the local economy. Categories included in the survey with high local scores included: Hospitals/ Rehabilitation volunteered time Hospice volunteered time, donated money, committed sponsorship Mental Health Services volunteered time, donated money, committed sponsorship Other Health Services volunteered time, donated money Children s welfare - committed sponsorship Family Support Services volunteered time Youth Services and Welfare - committed sponsorship Services for the Elderly - committed sponsorship 34 The Promoting Generosity Project Palmerston North Sector Profile: Not-for-Profit

37 Palmerston North Sector Profile: Not-for-Profit Mahi Aroha Maori Perspectives on Volunteering and Cultural Obligations Mahi aroha is the term that most closely translates to the concept of voluntary work. Mahi aroha is the unpaid activity performed out of sympathy and caring for others in accordance with the principles of tikanga to maintain mana and rangatiratanga, rather than for financial or personal reward. Mahi aroha is one aspect of tohu aroha an expression that incorporates the spiritual and temporal aspects of volunteering. He tohu aroha is an expression or manifestation of love, sympathy or caring. Mahi aroha involves the provision of assistance, either directly or ultimately, towards physical, social, economic and cultural survival and recovery. Its value is in providing essential services or other benefits to Maori that would not otherwise have been available and that contributed to improving the wellbeing of Maori as a people, as well as individuals. In the Office for the Community and Voluntary Sector research report 4 people commented that there was a significant value to themselves in knowing that they were doing something to further cultural survival and recovery, Maori development, mana and tino rangatiratanga. Some said that they were comforted by knowing that they were doing something that was valued and made a difference. A significant motive for mahi aroha for many people was their ability to contribute. People who had skills, knowledge and a firm commitment to kaupapa Maori were keen to contribute these in whatever way they could, particularly in the cause of cultural recovery. Virtually all participants commented that a reason for continuing to contribute their time to projects and organisations was the intrinsic rewards of knowing that I m doing something to help. In addition, people had experienced other rewards from such participation, which had added value to their own lives. For many people, giving their time and effort was an important aspect of their selfimage and self-worth. In particular, people who had been raised around marae and/or in whanau where mahi aroha was considered a usual part of the whanau s life saw mahi aroha as an essential part of who they were. Mahi aroha is the unpaid activity performed out of sympathy and caring for others in accordance with the principles of tikanga to maintain mana and rangatiratanga, rather than for financial or personal reward. 4 Office for the Community and Voluntary Sector. (2007) Mahi Aroha Maori Perspectives on Volunteering and Cultural Obligations. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 35 Palmerston North Sector Profile: Not-for-Profit Mahi Aroha Maori Perspectives on Volunteering and Cultural Obligations

38 Research participants with strong religious convictions saw their mahi aroha as a key part of their Christian commitment and an integral aspect of their lives. Many of these people, including those belonging to mainstream churches as well as those belonging to Maori faiths (e.g.. Ratana, Ringatu), saw their religious and tikanga beliefs as integrally connected. Though people rarely considered the reciprocal duty of others to help them in any conscious way, at a deeper level they were comforted to know that they were contributing to a complex system that would ultimately serve them and their whanau when needed. This sense of security was more often seen as relevant to the needs of people s whanau, especially their children, than to one s personal needs. However, it was important at a personal level in relation to one s wairua. 36 Mahi Aroha Maori Perspectives on Volunteering and Cultural Obligations Palmerston North Sector Profile: Not-for-Profit

39 Palmerston North Sector Profile: Not-for-Profit Volunteering in Palmerston North Census 2006 data shows that participation in voluntary activity in Palmerston North in 2006 was slightly higher than the national average, with a participation rate of 14.1% compared with the national rate of 13.8%. Palmerston North is the 12th largest local authority in New Zealand and was the 18th lowest for participation in voluntary activities in 2006, suggesting a higher level of participation in voluntary activity than would be expected based on the size of its population. Palmerston North has a high concentration of people in the age group (27% of the total city population in 2006), which is the age group with the lowest level of participation in voluntary activities (20.4% of the national population was in the age group). This would normally be expected to reduce the level of participation in voluntary activities in the city so other factors have contributed to a higher participation rate. There do not appear to be any obvious demographic or social factors which have influenced this higher participation rate in voluntary activities in Palmerston North. The city does not have marked variations from the national data for ethnicity or identification with religion. The proportion of part-time work in the city is higher than the national average but this is likely to be linked to the high student population in the city. A higher level of part-time work is linked with higher participation in voluntary activities but this is more than offset by the high proportion of the Palmerston North population in the age group, which has low participation in voluntary activities. participation in other voluntary work and local authority population 500,000 There do not appear to be any obvious demographic or social factors which have influenced this higher participation rate in voluntary activities in Palmerston North. 450,000 Local Authority Population 400, , , , , , ,000 50, % 5% 10% 15% 20% 25% Participation Rate in Other Voluntary Work Palmerston North Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 37 Palmerston North Sector Profile: Not-for-Profit Volunteering in Palmerston North

40 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 38 Palmerston North City Council Support for the Not-for-Profit Sector Palmerston North Sector Profile: Not-for-Profit

41 Palmerston North Sector Profile: Not-for-Profit Palmerston North City Council Support for the Not-for-Profit Sector The Council offers a wide range of financial support to not-for-profit institutions which provide a benefit to the city. This includes: 1. City Coordination Services There are four coordinating services in the City which are funded by the Council. These organisations coordinate the not-for-profit institutions around the City with one another to ensure that these institutions benefit from the collective knowledge and interaction that exists in their areas of expertise. Social Coordination Services ( Community Services Council); Arts and Culture Coordination Services (Community Arts Palmerston North) Leisure Coordination Services ( Sport Manawatu) Environmental Coordination Services (Environmental Network Manawatu). The city coordinating service organisations provide all or some of the services listed below: Training; Advocacy; Capacity building; Coordination and networking; Distribution of funds on behalf of Council; Reporting and monitoring of their respective sector to Council; Information provision. 2. Major Grants The Council provides 3-year grants to organisations in the community that provide ongoing services to the community. These agreements fund a portion of a service s ongoing expenses, and are not designed to cover entire costs. The grant operates like a donation that recognises an organisation s service to the City. There are four coordinating services in the City which are funded by the Council. These organisations coordinate the not-forprofit institutions around the City with one another to ensure that these institutions benefit from the collective knowledge and interaction that exists in their areas of expertise. Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 39 Palmerston North Sector Profile: Not-for-Profit Palmerston North City Council Support for the Not-for-Profit Sector

42 These services fall under either social or leisure services. The Council enters into funding agreements with agencies to provide services for the community. 3. Fees for Service The Council contracts organisations to provide a service that the Council would usually otherwise have to do itself. These services range from providing safety in the Square to advice on issues and facilities. 4. Rental Support The Council currently provides rental support to various community groups. This form of support currently exists in the form of a subsidy. The Council will gradually convert these subsidies to tagged grants 5, and they will either be issued through the funding agreement processes and become part of the Major Funding Agreements, or become a fund specifically targeted at paying community group rents. 5. Rates Support The Council supports some community groups by providing rates support, and remits either all or a percentage of the General Rate and the Uniform Annual General Charge rate, or remits a portion of the pan charges incurred by some community organisations (mainly schools) for their waste water. All rating support operates in accordance with the Local Government Act and the Local Government Rating Act 2002, as described in Council s Rating Policy in the LTCCP Rates remissions will also become part of the grants process, a move which is designed to make the system more effective, streamlined and transparent. The Rating Act also specifies a range of institutions (for example, places of religious worship) which are non-rateable. Rates support (or grants) is not required for these institutions. 6. Targeted Funds The Council has a number of funds that it either distributes internally or has a funding agreement with an external organisation to administer. Some funds are for events, while others are to help community organisations establish themselves as viable organisations. The targeted funds are: Sports Assistance Fund Creative Communities Events Funding Scheme Community Groups Training Fund Local Initiatives Fund Community Development Small Grants Natural and Cultural Heritage Incentive Fund 5 Tagged Grants refers to criteria stating that this funding must be used only for paying rentals, regardless of who owns the property. 40 Palmerston North City Council Support for the Not-for-Profit Sector Palmerston North Sector Profile: Not-for-Profit

43 7. Project Partnerships The Council undertakes the building of new facilities, and issues monies targeted at providing new facilities or projects that benefit the community. The amount of support varies, depending on building activity and need in the community. 8. Community Development Policy The Council supports community groups endeavours to access funding from other agencies by advocating on their behalf and providing them with free access to funding databases. 9. Infrastructure Provision Council provision of key assets in the city, which are able to be used by not-forprofit institutions, also supports the activities of not-for-profit institutions in the city. The Council has a significant investment in a variety of sports fields, community centres, indoor sports facilities and theatres, for example. The Council provision of community facilities and infrastructure supports the activities of not-for-profit institutions in the city as well as commercial activities. It is not possible to completely separate commercial and not-for-profit activities but most commercial users are charged on a user-pays basis to use Council facilities while not-for-profit institutions generally receive discounted rates for the use of these facilities. Major community assets which are funded significantly through rates and development contributions are: Swimming pools $2.0 million Arena Manawatu $2.3 million Cultural facilities $1.6 million (includes Square Edge, Regent, Library, Te Manawa, Globe and Creative Sounds) City Reserves $2.4 million Community House and community centres $1.7 million Local Reserves (includes sport fields and facilities) $6.5 million Total annual maintenance and depreciation expenses for community and recreation facilities are $21.5 million but these are offset by annual income of $5.5 million, leaving a net cost in the annual council budget of $16.0 million. These facilities are not established exclusively for the not-for-profit sector but their provision is important in facilitating the activities of many sports, recreation, cultural and social groups operating in the city. These costs are based only on the annual maintenance and depreciation costs for these facilities so do not take into account the financing cost for these investments. 41 Palmerston North Sector Profile: Not-for-Profit Palmerston North City Council Support for the Not-for-Profit Sector

44 Levels of Direct Funding Support to External Organisations (2008/09) Council funding of more than $4.2 million was allocated in the 2008/09 financial year to support external organisations. The majority of this money was allocated to not-for-profit institutions based in the city. Organisations which received financial support but which were not classified as not-for-profit institutions include schools and commercial organisation receiving events funding. PNCC funding support 2008/09 Sustainable Environment $144,500 Social $1,258,499 Economic Development $1,835,800 Leisure, Arts and Culture $1,038,958 The Sustainable Environment area is a significant element of the Council s core business area, so the Council tends to support external agencies only when the service is not adequately covered by the Council s in-house expertise. This explains the seemingly low level of external financial support for this area. Picnic in the Park Image Courtesy of Manawatu Standard 42 Palmerston North City Council Support for the Not-for-Profit Sector Palmerston North Sector Profile: Not-for-Profit

45 Leisure, Arts and Culture Direct Council funding for leisure, arts and culture in the city was more than $1 million in the 2008/09 financial year. Major components of this spending are: Fees for service - includes: $325,000 City Leisure Coordination Service: $70,000 Sports event coordinator $30,000 Sport Manawatu $40,000 City Arts Coordination Service $75,000 Rental support $292,979 Rates support $88,830 Targeted funds: $111,000 Sports Assistance Fund $35,000 Creative Communities (PNCC) $28,500 Creative Communities (CCNZ contribution) $48,220 Major Grants $135,700 There is also significant Council investment in and funding for sports fields, community centres, indoor arenas and other facilities to ensure that the City s heritage, prestige and influence are cherished. Sports fields in the city, for example, cover approximately 1,056 hectares of land and include 79 playing fields, 10 dedicated training fields, 35 netball courts, 11 courts at Arena, 38 tennis courts and two artificial hockey turfs. Council Controlled Organisations funded by the Council include Arena Manawatu, Globe Theatre, Regent Theatre, Caccia Birch House and Te Manawa. Total funding for these organisations in 2008/09 was $3.4 million. Economic Development The Council committed more than $1.8 million to funding economic development activities in 2008/09, with the majority of the funding distributed to notfor-profit institutions in the city. Just over $1 million in funding was committed to Destination Manawatu and Vision Manawatu, $50,000 to the Rugby Institute and $423,000 to events contracts. The remaining $312,000 was committed to the following targeted funds: Events Funding scheme $135,000 Youth Event $10,000 Student Initiatives $167, Palmerston North Sector Profile: Not-for-Profit Palmerston North City Council Support for the Not-for-Profit Sector

46 Social Services The role of coordinating social services in the City is currently held with the Community Services Council. It receives a grant for a salary for a social coordinator, funding for distribution through the Community Development Small Grants scheme and administration funding for the distribution of the small grants. Total Council funding for the sector in 2008/09 was approximately $1.2 million (the Community Funding Policy document (amended June 2008) includes some funding through rates remissions and rental subsidies for the education sector). Key components of the 2008/09 funding for social services (also includes education) includes: Rental subsidy $316,113 Rates remission $181,116 Fees for service includes: $145,000 Community Services Council $30,000 Disabled Persons Assembly partnership $20,000 Safe City Trust $50,000 Youth Apprenticeship support $30,000 Major grants $356,100 Targeted funds $157,750 Community Groups Training Initiatives fund $15,000 Local Initiatives fund $25,000 Community Development Small Grants Fund $117, Palmerston North City Council Support for the Not-for-Profit Sector Palmerston North Sector Profile: Not-for-Profit

47 Sustainable Environment The coordination of environmental services in the City is currently held with the Environmental Network Manawatu. This organisation receives a grant to coordinate and build the capacity of the environmental sector in the City by acting as an umbrella organisation for environmental organisations. Key components of the 2008/09 funding for environmental services includes: Fees for service includes: $109,500 Environmental Network Manawatu $30,000 Zero Waste $30,000 Green Corridors $30,000 Natural and Cultural Heritage Fund $35,000 Education Financial support (mostly rental support and rates remission) for pre-school notfor-profit institutions, including kindergartens, is included in the social assistance category above. It is estimated rental support and rates remissions were worth around $40,000 to the not-for-profit institutions in the education sector. Religion The Rating Act specifies that places of religious worship are non-rateable. Rates support (or grants) is therefore not required for these institutions and the Council has not estimated the financial savings for places of religious worship due to their non-rateable status. Social English Group Image Courtesy of English Language Partners New Zealand (Formally ESOL) 45 Palmerston North Sector Profile: Not-for-Profit Palmerston North City Council Support for the Not-for-Profit Sector

48 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 46 Appendix 1: Summary Tables Palmerston North Sector Profile: Not-for-Profit

49 Palmerston North Sector Profile: Not-for-Profit Appendix 1: Summary Tables Not-for-Profit Institutions in New Zealand Sector Employing Number of Institutions Not employing Total Number of employees Contribution to GDP ($ million) Culture and Recreation 2,380 48,840 51,220 16, Culture and arts 350 4,670 5,020 2, Sports 1,390 13,510 14,910 9, Other recreation and social clubs ,590 23,210 5, Support and ancillary services Education and Research 1,670 5,730 7,400 20, Early childhood education 990 1,040 2,030 8, Primary and secondary education , Higher education, ,490 6, other education and research Support and ancillary services 100 3,590 3, Health 450 1,770 2,210 15, Social Services 1,750 9,520 11,280 31, Environment 110 1,210 1,310 1, Development and Housing 550 7,020 7,580 3, Tangata Whenua Governance 65 1,120 1, not estimated Law, Advocacy and Politics 210 2,280 2,500 2, Grant Making, Fundraising and Volunteerism Promotion International Religion 1,910 7,980 9,890 9, Business and 470 2,660 3,130 3, Professional Associations, Unions Total for Not-for-Profit Sector 9,690 88,930 98, ,540 3,611.1 Relay for Life Image Courtesy of Cancer Society of New Zealand Manawatu Centre Inc. 47 Palmerston North Sector Profile: Not-for-Profit Appendix 1: Summary Tables