What’s Impacting the Sector?
The State of Southland’s Community and Not-for-Profit Sector: Challenges and Opportunities
At the Connected Murihiku Community Hui on Tuesday 11 February, the question was asked regarding what is impacting the sector at the moment. The following key points were the common themes raised by the 45 people present. The insights shared have highlighted a sector facing increasing pressure but also brimming with potential solutions and opportunities for support.
Challenges Facing the Sector
A common theme that emerged was the increasing demand for services, driven by economic hardship, rising living costs, and ongoing social challenges. Many organisations reported that they are operating at or beyond capacity, with growing waitlists and an ever-expanding scope of work. This has placed significant strain on both staff and volunteers, who are navigating burnout while trying to meet community needs.
Funding uncertainty was another critical issue. Many organisations rely on short-term or project-based funding, making it difficult to plan for long-term sustainability. The administrative burden of applying for and reporting on grants was also identified as a challenge, often diverting valuable time and resources away from frontline work. There is a call for more sustainable funding models, including multi-year contracts and a focus on proven outcomes rather than constant reinvention. It was also noted that soft outcomes are hard to measure for funding accountability but often have the most significant impact in the long term.
Political influences and regulatory changes have added further pressure, with shifting government priorities impacting funding availability and program sustainability. Many organisations expressed frustration over top-down decision-making that does not always reflect the real needs of the communities they serve. It was felt that sometimes the evidence from outcomes of projects and organisations were ignored and that ‘things were happening to people rather than with people.’ Compliance requirements are also increasing, making governance roles more demanding and discouraging volunteer participation.
Volunteerism itself is changing. Many groups reported difficulties in attracting and retaining volunteers, particularly in leadership roles. The rising cost of living and shifting priorities mean fewer people have the time to commit. The role of a volunteer has also become more complex, with increasing governance, health and safety, and compliance responsibilities making it feel more like a second job rather than a passion-driven contribution.
What Would Help
Organisations identified several areas where support and strategic investment could make a significant difference:
Sustainable Funding Models – A shift towards more long-term, flexible funding would provide stability, allowing organisations to focus on their mission rather than constantly seeking financial support. As one person stated - ‘more funding tried and true – focus on outcomes delivered and build on that instead of launching new deliverables all the time.’ A universal funding application form and simplified processes would also be beneficial.
Collaboration and Shared Resources – Strengthening connections between organisations could help reduce duplication of efforts and increase impact. More opportunities for shared training, pooled resources, and collective advocacy would strengthen the sector overall.
Capacity Building and Workforce Development – Investment in leadership development, governance support, and volunteer recruitment strategies would help build a more resilient sector. Training on governance roles, succession planning, and volunteer expectations would help organisations sustain themselves more effectively.
Community Engagement and Awareness – Raising public awareness of the work being done by community organisations, as well as the challenges they face, would help generate more local support, attract volunteers, and encourage partnerships with businesses and other stakeholders. Better storytelling and sharing of successful initiatives would help create a more connected sector.
Flexibility and Trust-Based Relationships – A shift away from one-size-fits-all approaches to more tailored, community-led solutions would enable organisations to be more responsive to local needs. Strengthening trust between funders and organisations would also help create a more supportive environment.
Moving Forward
Despite the challenges, there is a strong sense of resilience and commitment within Southland’s community sector. By fostering collaboration, advocating for sustainable funding, and investing in capacity building, we can create a stronger, more connected network of support for those who need it most. The next step is to bring together key stakeholders to explore these solutions in greater depth and work towards a more sustainable future for Southland’s community organisations.