The Voluntary Sector, sometimes refer to as the Third Sector, is independent from both the Public and the Private sphere of society and this is characterised by several components

• not for profit
• service delivery is the goal
• voluntary decision to form an organisation
• non-statutory / non government

(Leslie, 1996 p.63)

While some voluntary agencies are nationally organised many are locally based, small, with few if any paid staff, incorporating voluntary assistance. The majority have an insecure, unstable, financial position dependent on a variety of short-term funding sources and fund raising. (Taylor, 1998)

Throughout this report the Voluntary Sector, Voluntary Agencies, Voluntary Organisations, Not-For-Profit Organisations are all used interchangeably and have the same meaning.

New Zealand society has been radically altered by fifteen years of neo-liberal policies which have been designed to devolve the role of the state. All spheres of life have been impacted upon and the voluntary sector is no exception. While once the role of voluntary agencies was to complement social services provided by government, today they supply the majority of welfare and social services required by society.

Policy Preferences

The policy preferences of recent successive governments have promoted neo-liberal ideology. Policies have been designed and implemented that

• support a free market philosophy - with the belief that the market will provide
• emphasises individual responsibility and choice
• value freedom above all else
• believe that inequality is a necessity
• subscribe to Agency theory - which believes all relationships: political, economic and social are contracts
• incorporate Transaction Cost Analysis
• are aligned with Managerialism
• are grounded in Public Choice Theory
• encourage competitiveness
• support residual government welfare
• minimalise the role of the state

These tenets have had widespread outcomes for all of society and have caused profound social costs.

The social effects of neo-liberal policy design have been widespread. There is a widening gap between the haves and the have-nots. In a recently released report by Massey University Economists S. Chatterjee and N. Podder New Zealand was revealed as having one of the biggest gaps between the rich and the poor in the developed world and 80% of households are receiving less of the country's wealth than fifteen years ago (Chatterjee and Podder, 1998). Many families exist in relative poverty due to high unemployment, residual welfare, low wages, market rental for housing and user pays charges. State welfare has become minimal with lower rates of benefits, since the cuts in 1991, and a reliance on supplementary benefits which are stringently targeted, income and asset (some) tested (McGurk, 1996). The myth of welfare dependency has been promulgated to enable the distinction between the deserving and un- deserving poor to be revisited (O'Brien, Cervin, Chile, and De Haan, 1997).

The social costs of neo-liberal policy preferences have placed great pressures on the voluntary sector forcing them to provide for the growing demand of social services. Thus, today voluntary agencies are facing issues of their own while trying to service the needs of their users.

Government policies have encouraged growth in the Voluntary Sector in their quest for consumer choice. New agencies appear to be assisted into the sector by receiving higher levels of government funding for their initial three years (Ernst & Young, 1996). This growth has changed the landscape of the Voluntary Sector. Smaller service providers offering similar services now not only compete for funding but also for clients. While the government markets competition as consumer choice, and in some cases this may well be true, it can also be interpreted by using other indictors.

Competition means:

• keeping an upper hand on competitors
• contestability of limited funding
• less collective action
• less networking
• gaps in co-ordination of services for clients
• need for brokerage
• market research
• reinforces individualism

Competition actively works against traditional strengths of the voluntary sector such as networking and collectively (O'Brien, Cervin, Chile & De Haan, 1997).

Finding adequate funding is the most dominant concern of voluntary agencies.

Meeting the needs of their client base is their aim and this has costs attached. The user pays philosophy the government espouses cannot be accommodated by the voluntary sector. The service users are over-whelmingly unable to contribute to the cost of service provision, for many it is their financial position that has forced them to become service users - such as with the food banks.

Voluntary agencies consider that to have secure, continuous, sufficient funding would not only alleviate anxiety and fragility but would also enable innovation and creativity to occur. Instead, however, the voluntary sector is bogged down in the day to day function of mere existence, much akin to the oppressed client base they are servicing.

Funding, or lack of it, affects all the dynamics of any agency. It results in a flimsy infrastructure and a constant balancing act between quality and quantity. A drop in funding results in cost cutting exercises which affect both staffing and services and, ultimately, clients.

The purpose of this research was to identity current issues and concerns affecting Voluntary Welfare and Social Service Organisations in Palmerston North and to develop strategies to assist with the alleviation of them.

This study aims to:

• review the current literature on voluntary organisations
• develop a questionnaire and post/deliver to identified agencies in Palmerston North
• conduct a number of follow-up in-depth interviews with a range of agencies
• produce and distribute a written report which will include a summary of the findings, an analysis of the data collected and suggestions for strategic action

I come to this research as a Pakeha, middle- class woman. A Social Work Student who is also a mother, a partner and a volunteer in a Social Service Organisation. My involvement over the past fifteen years within the Voluntary Sector allows me to have a working understanding of some of the issues facing the Sector currently. I feel this is a strength I bring to the study.

The target population for this research is voluntary welfare or social service organisations in Palmerston North. A list of agencies was comprised from various sources including publications, directories, community newspapers, the Manawatu telephone book, word of mouth and self-knowledge.

An invitation to be a participant in this research and a questionnaire was sent to eighty-two organisations.

The research was introduced to the Palmerston North voluntary and social service community by a number of methods.

Those agencies who are affiliated to Palmerston North Community Services Council (PNCSC) of which approx. 67% of the compiled list were, were firstly introduced to the project through a small article in their monthly newsletter FLAX. I was introduced and spoke about my background and the purpose and aims of the research at the August monthly meeting of the collective of PNCSC at which there were a small number of representatives of identified community organisations. At the August monthly meeting of PNCSC, which directly followed the Annual General Meeting, I was introduced and again presented the purpose and aims of the research , there was a larger number of agencies represented as well as people from the wider community.

I also made personal contact with Directors/Co-ordinators of some of the identified organisations and presented the concept of the research.

It was intended to make the research collaborative in order to be as effective as possible. Representatives of two agencies offered to view a draft copy of the questionnaire and comment. However due to an unforeseen accident only one representative was available to do this. Her input was extremely valuable and the questionnaire was modified accordingly.

A questionnaire was developed by adapting questions from previous studies on a similar topic, adding some community development questions and expanding the space for comments(Appendix 1).

I acknowledge the works of Jane Clark (1998) and Mary Cull (1993), both were extremely helpful.

Two covering letters (Appendix 2 and 3) were developed which invited organisations to participate in the research. These letters outlined the purpose of the research, introduced myself and my background as the researcher, discussed the benefits of being involved and detailed issues of confidentiality and the time-frame. The letters were posted/delivered with a questionnaire and a stamped self-addressed envelope. Letter one was used for the seventy-five agencies being invited to complete the questionnaire only, while letter two was altered slightly to include an invitation to take part in the in-depth follow-up interview as well as the questionnaire. and was posted to seven agencies. All were sent between the 28.8.98 and 1.9.98.and included a return date of 11.9.98

By 11.9.98 eighteen of the eighty-two agencies had returned their completed questionnaire representing nearly 22%. Follow-up phone calls were conducted between 11.9.98 and 18.9.98. By 28.9.98 the response rate was forty-five out of eighty. Two agencies were deleted as one had been listed twice under two different names and another was not a voluntary welfare or social service organisation. The return rate after one follow-up phone call rose 34% to 56%.

During this time I also presented an up-date on the questionnaire responses to the September monthly meeting of PNCSC This personal contact with a number of people representing community agencies in Palmerston North may have also influenced the return rate.

The final return rate was 53 responses out of a possible 80 representing 66%. Of the 27 that did not respond several commented they were too busy to take the time out to complete the questionnaire.

It was planned that these interviews would follow on from the questionnaire and pick up mainly on the major issues facing the organisation and the main issues and concerns presented by their client group and the pressure behind all of them.

Five fields of practice were identified which consisted of approx. eleven agencies representing issues ranging from the specific to the generic. These interviews were to be undertaken in forum settings, however due to various reasons two agencies were interviewed individually. One forum consisted of two agencies, another had three agencies represented while the final forum comprised of representatives from five agencies. One agency declined to be interviewed but did complete the questionnaire.

The interviews were relatively informal and semi-structured. They were taped and usually lasted one to one and a half hours.

My position as a Massey University student may have been a limitation as organisations in Palmerston North must get fairly pressurised at times by student requests and questionnaires. One agency commented that my questionnaire arrived at the same time as three others.

I am unsure if the response would have differed in my hometown where I am a little more known than in Palmerston North However as someone once said to me "You are never an adult in your hometown".

Collaboration was rather more limited than desired. It was difficult to get agencies on board due to time constraints and demands on them.

The lack of an up-to-date directory was possibly a disadvantage as it may have been possible to miss out lesser known agencies from the research.

Of the questionnaire, while some agencies answered fully and completely others seemed to rush through and only respond at a surface level. The questionnaire was quite long and complex and could seem daunting at first glance. Quite a number of the respondents had trouble with the percentages to the extent that those contacted in the follow-up phone calls were alerted to this and it was suggested that they respond with a tick instead. It was suggested by the person that commented on the draft questionnaire that perhaps she could have done a mock questionnaire to ascertain the length of time it would take to complete.

The nature of the research has not permitted any in-depth analysis of issues that are particular to agencies attempting to meet the needs of particular client groups and issues for clients themselves. While all agencies no matter what their client groups are will have commonalities, agencies that are set up for particular groups in society may have issues only relevant to them. .Agencies (and their clients) that are servicing; Tangata Whenua , minority ethnic groups, gender specific, youth, elderly, people with disabilities and mental heath issues while all being represented amongst the respondents of this research all are areas that warrant further research.

SURVEY SUMMARY (TABLE 1)

Data from the questions conducive to a table format was collated from the 53 responses to the questionnaire (refer Table 1). The table shows all the relevant statistical data and a brief summary of the major issues for each agency. The discussion that follows will address these issues in-depth. The list is in no particular order other than order of receipt.

In the research the respondents were asked to identify both the strengths and weaknesses of the Voluntary Sector, particularly in relation to its ability to fulfil the position of being the main social service providers.

Traditionally, voluntary welfare and social service organisations come about through initiatives at the community level, a desire to be responsive to an identified need. It is these grassroot initiatives that are deemed the strength of this sector. The responses received confirm this and detail the special attributes of those that work in this sector.

Voluntary agencies are grounded in local knowledge of both community resources and their potential client base. It is this community spirit which combines with personal attributes, attitudes, values and beliefs which are viewed as the known strengths of the Voluntary Sector. Some of the words used to describe these strengths were ; resourceful, caring, flexible, dedication, enthusiasm, commitment, experience, passion, strong moral fibre and a sense of social responsibility.

This comment sums up the people who are attracted into the social service sector,

The responses listed many weakness that in their view affect their ability to be the main Social Service providers. Many weaknesses were also identified as issues and discussion on these will follow.

• "that the work carried out is not real-work"
• "that this type of work only takes common-sense and a kind heart" (in contrast to that of skilled, trained professionals)
• "that 'women's work' is second-rate" (this sector is dominated by women)
• "that financial rewards for work undertaken should be meagre"

Funding is received through a variety of sources from both government and non-government funding agencies such as New Zealand Community Funding Agency (NZCFA) and The Lotteries Commission through to Philanthropic Trusts and local authority grants. These along with fund-raising ventures, donations, bequests, membership subscriptions and fees charged for service are the main sources of funding.

A recent survey revealed the average number of funding providers (government and non-governmental trusts and agencies) required for an agency to provide its service is five with some agencies have to enter into financial relationships with as many as eight organisations (J.R. McKenzie Trust, 1998,.p.1). However the government remains the only source of substantial funding (Saville-Smith and Bray, 1994).

In this research the number of funding sources that the responding agencies received money from ranged from a minimum of 1 source to a maximum of 10, with the average being 5 sources (refer Table 1 Funding sources)

The time consumed undertaking various applications and compliance reporting has increased substantially and is removing time, staff and skills from service provision. While it is agreed that some method of accountability should occur, some funding providers have requirements which voluntary agencies regard as excessive.

According to the Funding Information Service Incorporated data-base, 'Fundview' as at October 1998 there are 550 organisations that make funds available to activities and organisations made up of Government bodies, Philanthropic Trusts (both Statutory and Private), local authorities and local service organisations. However, the majority of these sources have set criteria with either location or categories. Therefore the number does not predict the availability of funding nor in fact does fitting the criteria alone determine eligibility for financial assistance.

Recently (1998) the New Zealand Association of Philanthropic Trusts undertook a survey on grant making procedures, categories of allocations and level of funds of philanthropic trusts.

The 90 responses were made up of three categories,

1. private trusts which have been established by individuals or families (77%)
2. statutory trusts which have been established through legislation with trustees publicly appointed or elected (19%), and,
3. company related trusts which are directly associated with a business (4%).

These groups had made grants as follows:

The findings revealed private trusts tend to fund Social Services and Health, 75% of their allocations, while statutory trusts have a more even distribution across all areas and the company-related trusts mainly fund Education (76%).

The survey reported that the statutory trusts, made up of community, energy, and licensing trusts, although accounting for only 19% of the responses owned over 90% of the capital assets and distributed 68% of the grants.

The survey found that 66% of trusts use categories to specify the areas they support and some were concerned with distribution within their broad aims at a local geographical level rather than specifically targeted populations.

(New Zealand Association of Philanthropic Trusts, 1998).

While this research questionnaire did not break down Trusts into different categories these findings indicate the relatively small amount of money available through Philanthropic trusts, mainly private trusts, that the agencies in our survey are competing for.

The difficulties of defining services for funding categories was alluded to. Some agencies are more generic while others address the needs of one specific area. All funding bodies have well documented criteria which clearly identifies what they will or will not fund and this can create serious problems.

67% of the agencies reported some form of government funding as their main funding source. These ranged from Ministry of Education through to NZCFA (refer to Table 1, main funding source).However, when questioned whether government funding was comprehensive, adequate, inadequate or ceased, inadequate was overwhelmingly 72.5% the response. 20% thought it was adequate, while 5% defined it as comprehensive and a further 2.5% commented that their funding had ceased (refer to Table 1, adequacy of government funding). Of those who described their funding as comprehensive, one described themselves as providing a new pilot programme and acknowledged gaining funds for this was not a problem. However they were not so certain about their future, while the other agency commented they were "bulk-funded".

While funding from any source remains an on-going issue for the voluntary sector, the reality that the majority of agencies gain some funding through a contractual arrangement with NZCFA requires a more in-depth discussion of this funding agency.

In 1996 NZCFA had contractual relationships with over 1200 agencies describing itself as the "key interface" between the government and not-for-profit social and welfare service providers (NZCFA, 1996, p.4). Through its "contribution model" which partially funds specific outputs, NZCFA contributed between 10% and 80% of required funding, with most agencies receiving between 40-55% (Ernst & Young, 1996, pp.63-64). However it appears the younger agencies receive higher contributions, while agencies over three years old received substantially less (Ernst & Young, 1996).

In 1995 NZCFA commissioned Ernst & Young to research "the viability of the not-for-profit sector in New Zealand". This study sought to identify the extent, effectiveness and impact of the NZCFA contribution model. While this study was designed from a top-down viewpoint and service users were not included as participants, I feel the overall finding summed up the state of the voluntary sector in 1995 and is still extremely relevant today; 'viable but vulnerable' (Ernst & Young, 1996). However 'viability' was limited in definition to "the capacity of the not-for-profit sector to continue providing services NZCFA wishes to purchase to meet the community needs" (Ernst & Young, 1996 p.1) Thus, this definition excluded any other indicators such as; the ability to achieve adequate funding, the capacity for development.

Moreover the study concluded with recommendations for viability assessment and monitoring procedures which suggested NZCFA review agencies that are facing the highest level of financial stress, uses financial information and trains outreach workers to recognise early warning signs of viability problems (Ernst & Young, 1996). However, it fails to offer any strategies past these therefore suggestive, that the contribution model is considered to be in no way responsible for the financial vulnerability of voluntary agencies. Overall the study creates a favourable picture of NZCFA but did reveal the financial frailty of the sector especially due to an increasing trend inability to replace assets, with its financial resources being deteriorated and depleted.

In contrast, a report released by New Zealand Council of Christian Social Services (NZCCSS, 1998) not only lists key findings and problems but also presents both immediate and medium term strategies to enhance both the operations and policies of NZCFA. It compares a range of government and non-government funders and gives NZCFA a poor rating. In fact, of all the funding agencies, NZCFA rated the poorest performer even with the majority of organisations receiving all or most of the funding they requested (NZCCSS, 1998, p.5).

The report suggests the contribution model is at the core of the low rating. The model, according to the report, combines the worst of both granting and contracting. It undermines independence, mutual trust and goodwill. It actively works against being responsive to client determined needs, development, preventative programmes and advocacy, all which work to alleviate need (NZCCSS, 1998, p.2)

Voluntary agencies repeatedly talk about frustrations around the general lack of funding, they desire longer term contracts and less compliance requirements. They expressed issues regarding attitude, consultation, data collection and reporting requirements.

The critical question relating to NZCFA's specific output contribution model is "who decides the need?" Previously client determined needs were met by the voluntary sector, now government outputs are being purchased without consultation with the client group. There is every chance many needs are not being recognised and therefore catered for.

Many reports discuss effective partnership between NZCFA and voluntary agencies. Taylor (1998) suggests effective partnership is based on;

• knowledge of the structure, policies and practices of both parties
• the ability to compromise
• both rights and responsibilities
• the establishment of mutually beneficial mechanisms e.g.: accountability, monitoring, regulations
• ability for flexibility to allow for localised development

Effective partnership allows for both parties' needs to be met. NZCFA appears to fulfil its assessment function by consultation that is cosmetic. However, in order to develop a working partnership, true consultation with established procedures would have to be developed; methods which would include equal concern for both parties in the design of NZCFA policy and strategic planning.

Taylor (1998) comments that the voluntary sector requires investment in its development, core costs and infrastructure. This investment would allow it to move beyond being viable and vulnerable to being viable and strong in both stature and status.

The development of an effective partnership would enhance both NZCFA and the voluntary sector and in turn be beneficial to those in need - the service users.

Through the Palmerston North City Council (PNCC) Annual Planning process some of the Operational Budget and Programme money is granted to Voluntary Welfare and Social Service Organisations. In this current financial year, 1998/99, Community Development Grants totalled $250,700 with $208,200 tied up in two year contracts which expire in June 1999 at which any money is once again contestable. Of this amount, $75,100 is administrated by the Community Services Council and distributed through grants to organisations by an application process, subject to final approval by the City Council. This amount is currently set at $1.00 per head of population. This allocation began in 1982 at 25 cents per head of population and has risen periodically since becoming $1.00 per head of population in 1994/95 (refer Table 2). This current financial year, 1998/99 there were 61 applications for grants which totalled $131.793. Grants were given to 55 groups totally $75,100 (refer Table 2).

Grants are to meet basic administration and office costs which the CSC realises are essential to maintain groups and not easily secured from other funders (PNCC Grants Allocation: Historical Notes, 1998).

Concerns about the level of funding secured was reported as the major issue for the majority of agencies. The inadequacy of funding is interconnected to many of the other issues identified in the responses. This sector is extremely vulnerable to the decision making of others who ultimately decide whether they survive or not.

The issue of under-funding was overwhelmingly considered a weakness and an overriding major issue affecting the majority of Voluntary agencies. Under-funding has major spin-offs causing a wide range of effects which were also alluded to in the responses.

Comments such as:

and

"Inadequate funding to provide services needed"

reveal the effect on direct service provision.

However, lack of adequate funding also limits:

• the ability to secure and maintain appropriately trained staff
• the ability to cover volunteer costs
• training opportunities for both employees and volunteers
• on-going job security
• staff and volunteer morale
• development opportunities
• the ability to make a difference for clients and society
• the ability to carry out any prevention work

The overall lack of adequate funds this sector receives places it in an extremely vulnerable situation. Comments such as; "constant worry" and " day to day running affected because of unknown amount of funding" clearly state the sectors' concerns in relation to their finances.

Competition for funds was an issue raised with more agencies vying for the same dollars. Respondents commented that there were cuts in funding from NZCFA for the Manawatu region this year and yet they were still expected to continue the same level of service provision. As one agency commented,

"Contracting for Social Services can easily become a fragmented, compliance centred enterprise instead of an integrated, citizen-focused service. In the process of defining goals and measuring contract compliance the citizen can ultimately be lost (Kettl,1993, p207).

While most funding sources have some form of accountability procedure, Government funding bodies have very high compliance costs. Agencies have to totally conform to the funding body's requirements no matter what percentage of funding is gained from them.

The following comment is typical of the comments on this issue;

One particular compliance cost that is a current concern is the cost of auditors fees. While some agencies have found a suitably qualified person to donate their time, others are finding they are having to pay market rates for this service. It is yet another expense that is difficult to find funding for and therefore takes money away from other services. Figures for this service that were mentioned by the respondents ranged from $400 to a percentage of turnover.

One respondent offered the following comment to their situation,

Another respondent who had more success in gaining volunteer assistance for auditing commented,

It was pointed out that while the reporting procedure of NZCFA is standard in it's format how they are answered lacks uniformity and across New Zealand there is no consistency. How reports are undertaken is dependant on the individuals' personal analysis and way of working, creating differences and discrepancies even within one agency. The value of the information provided to NZCFA for the agency was regarded as questionable.

One agency commented,

Strong compliance measures for funding at times appear controlling and excessive for the level of funding received.

"I said to her, 'I was more than comfortable with the notion that we had to, for Health and Education because of the funds they provided. I accepted those conditions and we would do our best to comply with them, but in terms of the other services that we offer, hands off'".

Excessive accountability requirements for dis-proportionate funding diminishes trust. The level of accountability that is expected of the Voluntary Sector is not imposed in any other sector (Stafford,1998, p.267).

The diminishing pool of donor dollars is also a concern. With government's policy of

partial funding, the voluntary sector is forced to look at alternative sources of revenue to exist. There has been an increase in the number of agencies all vying for the same finite resources. Some larger, more able groups have the capacity to have a funded position, whose prime function is to improve their agency's 'market share' of the charity dollar. This impacts onto smaller agencies as they are not in the position to compete and therefore miss out, adding to their financial vulnerability (Legot, 1997

A dependency on donations and fund-raising projects was expressed by some of the respondents creating a return to the charity model of welfare. While competition for the charitable dollar is obvious and some larger organisations are able to employ people to ensure they gain their market share one respondent expressed concern for the general public commenting:

Fund-raising in New Zealand is historically aligned to the traditional cake stall and now-a-days the sausage sizzle. While some respondents referred to being reliant on fund-raising projects others felt fund-raising as an option for funding was not for them.

Voluntary agencies are expressing that one effect of on-going funding concerns is its limitation on development. Funding levels are so low that they only just cater for the continuation of existing service provision, hindering new developments. Workers in

agencies are so stretched, just making ends meet with an over demand on services, that any creativity or innovative thinking is stifled by the enduring environment. As New Zealand Council of Social Services (NZCOSS) stated in their recent publication "inflation (adjustment) does not exist in the voluntary sector" (NZCOSS, 1998 p.1).

The autonomy of the Voluntary Sector, that is, the ability to respond voluntarily to an identified need (Dyson,1998), was presented as a strength by some, who viewed themselves as having no government affiliation and being void of a political agenda . However, this perceived autonomy was questioned by others, who thought the sector was at risk of funder-capture.

Expressions such as "may be manipulated by funders" and "co-opted into conformity with establishment" offer direct confirmations of the fear that some organisations have of losing their autonomy and with it the ability to make their own decisions and determine their future directions.

The constant stress and worry of keeping running month to month effects the stability of any agency and long term and strategic planning.

As one organisation comments,

This agency was referring directly to the fact that they felt it impossible to plan ahead not knowing the budget they had to work with or even if they would be in existence. Working with an unknown budget can compromise goals and objectives, hinder any expansion and alter the very reason the agency came into being.

Limited funding places a constant stress on the work-place and stifles the synenergy and creativity of the work environment. Innovation, a previously acknowledge strength of the Voluntary Sector appears to be bogged down under the coping of the daily battle to survive. Fresh ideas can only grow within an environment which is conducive to them.

The under-funding of this sector has a direct effect on service provision. Some agencies reported having to cut services in order to survive. The inadequacy of the funding secured, places restrictions on the amount of work that can done and this lies in direct contrast to the increasing demand for the work undertaken in this sector along with increases in associated running costs. There is a constant tension between quality and quantity.

The type of service provision is also affected by inadequate funding. It was reported that preventative work could be undertaken if funding was more realistic. By providing a more preventative approach rather than constantly dealing in crisis mode, not only would future social service clients be helped but also all of society.

The time needed to complete funding applications, accounting procedures and compliance requirements also has a direct impact on service provision. These functions take time away from the client services.

From the responses it is generally apparent that a large amount of time and effort is devoted to gaining on-going funding. While mostly this function is undertaken by a paid staff member (66%) there are still a number of agencies whom rely solely on volunteer input to complete this task (30%), and a few agencies utilise volunteers while also providing them with some staff support (4%).

39 of the 53 responses indicated the number of funding applications they completed each year. These ranged from a minimum of 3 to a maximum of between 30 to 40. It was acknowledged this number differs from year to year as does the success rate. The success rate ranged from 15% to 100% with these 3 agencies who quoted 100% explaining that the rate meant they had received some funds from all funding applications rather than the amount requested or required.

In response to whether the time and money was worth it, the comment yes with qualifications was overwhelmingly the dominant reply, only 3% thought it was not worth it. However, when yes was answered it was alongside comments which clearly indicated the gratefulness for any moneys received.

There was a reluctant acceptance that continually applying for funding has become a daily necessity.

The comments that were received related directly to the vulnerability of the Voluntary Sector and the insecurity of funding, forced to rely on continuously applying for funds, never knowing whether they will be successful or not, having to accept what is offered even if the amount is substantially less than is required in order for survival and feeling forever grateful to those who financially support them .

The opportunity cost of addressing the on-going funding issue was also raised with particular reference to the time used which is time taken away from direct service provision.

The negative responses reflected this weighing up of time against possible funding gains.

With regard to the process of funding negotiations, some responses questioned the word 'negotiation' as they found that neither the government funders or those funders outside of the government as having any identifiable system of negotiation,

Overall the funding process with 'other' funders (trusts), those outside of the government, was described as far more straightforward and generally more helpful than dealing with government funding sources. However, comments supplied still indicate some difficulties are apparent, especially around the anticipated result of any application; "A waiting game", "some good and focused, others loose and a lottery", "Beg and wait" and "some regulars almost certain, others uncertain".

Comments were made that referred to the competition between agencies all vying for the same dollar; "competitive and too long winded", "becoming more and more difficult" and "no negotiation, organisation has to meet set criteria and someone makes the decisions from the vast pile of applications for quite limited funds".

Government funding agencies were portrayed as bureaucratic and the holders of power in a marked power differential. Only one respondent used the word partnership when referring to government funders and they stated "No partnership". Some other descriptors used were "time consuming", "too technical and confusing, "decision making opaque", "slow, too much paperwork" and "no. of hours required to get funding disproportional".

The uncertainty expressed over the search for adequate funding and the lack of any negotiation process with any funders can only reinforce the vulnerability of the Voluntary Sector and have long term repercussions with such issues as: strategic planning, development, employment, service provision and facilities.

It appears that those agencies not providing direct service provision but providing information, support and advocacy have greater difficulty in securing funding. These behind the scene services do not appear to be viewed as essential even though they can be the very service that will prevent someone from needing more direct services. Agencies that provide direct service provision have an advantage by being are able to buy into the contracting culture more easily with the purchase of 'outputs' from the larger Governmental funding bodies such as NZCFA.

One agency which provides a information/support service made this comment in relation to funding applications,

The investment market has a direct impact on the amount of money available through Philanthropic and other Trusts. In times of prosperity there is more money to be shared around, however the reverse is also apparent. The economic recession that New Zealand is now in is going to have repercussions on the amount of potential funding available to the Voluntary Welfare and Social Service Organisations. The investment interest rate is extremely low making the return on investment dollars substantially less. The fear of the effects of this on the Voluntary Sector was expressed and the impact of even less money to go around voiced as a real concern.

The questionnaire asked the respondents to indicate whether they utilised any non-financial resources and if so how did they rate them.

Responses were as follows:

• labour of volunteers 94%
• donation of services 60%
• free/nominal-cost facilities 57%
• donation in kind 43%

The majority of agencies rated these non-financial resources as " very important", with very few agencies rating them important or slightly important.

The ability to gain these types of resources appears to becoming increasingly vital with the environment for funding so competitive. As one respondent stated:

Finding funding sources that are prepared to fund salaries is problematic. There are few funding bodies that view salaries as worthy of funding and this causes difficulties with attracting people into the sector.

Agencies find creative ways to try to maintain the same level of their service. Staff are often a big part of the solution and working the same hours for less or doing more hours for no more remuneration is not unusual. Many of those employed in this sector are highly qualified and experienced and these situations are occurring to people who are already paid far less than their equivalents in the business sector.

Limited funding restricts staffing levels and places stress on the work-place. This creates such mentioned issues as; worker burn-out, low morale, frustration, anger, difficulties of retention and limited supervision (which is a necessary tool for the health and safety of many of those working in this sector)

The training of staff was also referred to, with the inability to pay for training needs an issue, which once again stresses the effects of the under-funding of this sector.

Many responses made comment on the increase in referrals they were dealing with in their agencies. There are difficulties in providing enough services to cater for this expanding workload. Comments such as; "There is too much to do". and "more people needing the service, less money available" reiterate this reality.

One comment about the high workload expressed feelings of frustration;

Possible solutions for clients issues are also being restricted.

Networking, a known traditional strength of the voluntary sector, seems to have taken a secondary position. While networking works to enhance service provision and is a valuable resource for information for both the agency and client, its collective element is contradictory to the competitive model the contract culture is requiring. Networking walks alongside collective collaboration while competitiveness separates itself off and aligns with individualism - a previously little known characteristic of the voluntary sector.

Social service work undertaken well should include elements of advocacy. Advocacy can be engaged in two levels - the personal and the political. The current climate of high demand for services and scarce resources have placed advocacy on the back burner. Some Foodbanks are good examples of this. Food parcels are a quick-fix remedy, and while they can alleviate a crisis they are not aiding in the long term, nor challenging the structures that are creating the impoverished conditions of the clients (Leslie, 1996).

In financially limiting times, advocacy appears to be one of the first services to go. However it is personal advocacy that seeks to ensure that service users are informed about all welfare entitlements and relevant social services to help meet his/her needs and enhance well-being.

When this is not done the client remains in a disempowered state and the voluntary sector is guilty of siding or colluding with the oppressor.

At the political level, to challenge political decisions that impact on the well-being of service users also appears to be limited. The majority of voluntary agencies rely on government provided funding and 'funder capture' the fear of backlash, may be actively working against political advocacy. Would agencies who actively advocate for the rights of their service users and political change be disadvantaged in their next funding application? While it is often difficult to prove, stories of this happening are common. However, it is the preventative measures of social service provision that are being neglected and crisis intervention is becoming the norm.

It was apparent that intervention rather than prevention work was the norm, and agencies found themselves responding to one client crisis after another. One agency reported that they had the skills and knowledge base to undertake preventative work through educational means and felt this could really make a difference to society, however, they were unable to do this not only because of financial constraints but also because they were continually just doing crisis work and being exhausted by that.

While a level of bi-culturalness exists in Voluntary Welfare and Social Service agencies and there is some parallel and separate development initiatives, there are still some needs not adequately addressed. There is a need for more culturally appropriate services and programmes for Tangata Whenua. There also needs to be more Tangata Whenua counsellors working in mainstream services.

Many agencies are dependant on volunteer assistance to enable the continuation of service provision at current levels. There are two main issues concerning volunteers and they appear to be almost contradictory.

On one hand, volunteers have become a scarce resource due to the changed working environment caused by the introduction of the Employment Contract Act (ECA) in 1991. The casualisation of the labour market has forced many low paid workers to find additional jobs in order to survive, while those in higher paid positions are required to be constantly available ( New Zealand Catholic Bishops, 1998).This "over-employment" means less time is available for workers to spend with their families never mind undertaking volunteer work!

Whereas, on the other hand, voluntary agencies are nowadays expected to undertake social service delivery in a professional manner requiring the employment of qualified staff. Where once volunteers were the front-line of any agency, today paid administrators, managers and professionals are in their place. The 'professionalisation' of the voluntary sector requires those prepared to volunteer their services to make a long-term commitment and under-go comprehensive training in many cases. Thus the high expectations on volunteers may also be adding to the reduction of their numbers.

This was reiterated in the research where volunteers were considered both a strength and a weakness . Their importance was acknowledged in that they have the right attitude, being altruistic, giving, caring and willing to help those less fortunate than themselves.

One agency, commenting on the value of their volunteer workers stated,

The difficulty of securing volunteers was recognised as a weakness alongside the need for adequate training for them and their temporary nature.

The need to be able to compensate volunteers for any costs they may occur while undertaking work in a voluntary capacity was expressed as an issue. The respondents identified that Volunteer expenses were difficult to gain funding for.

The recruitment and retention of volunteers was listed as an on-going issue for organisations in the responses. The greater demands on peoples' time and the reality that many people have their own personal hardship these days results in fewer people available for volunteer work.

As one comment stated;

Volunteers are utilised in many different ways within the Voluntary Sector and because of the structure of some agencies volunteers are required for committee work. As one agency points out there is not an infinite number of committed community minded people for these roles,

Some agencies have compulsory training requirements that any person wishing to be involved in volunteer work have to undergo. While these programmes are for the protection of both the clients and the volunteers themselves they can sometimes prevent volunteers from becoming involved

."We have no trouble getting Volunteers but they have to go through a 40 hour training programme before they come on so that can be a bit of a barrier".

The nature of Palmerston North with it's ever changing student population was acknowledged as having an impact on the retention of volunteers, This was accepted as "just how it is in Palmerston North" however, it was agreed that it did compound difficulties with consistency which is already an issue with volunteers.

This Government scheme which commenced on 1^st October 1998 intends to ensure beneficiaries will 'work' for their benefit will have a deep impact on the voluntary sector. It is the voluntary sector the government is relying upon to locate the 'jobs' required. Concerns have already been expressed about (AUWRC, 1998, p. 9):

• the displacement of staff
• the straining of relationships between staff / volunteers / community wage workers
• the drop in real wages - wages already low
• training: who is responsible? At what cost?
• public support to voluntary agencies - how will the public perceive the agencies that have community wage workers?
• legal liability
• harsh sanctions for both refusal to "work" or unsatisfactory performance

While the full impact of the scheme remains to be seen at this time and these concerns have been vocalised other issues that have not been predicted will no doubt arise. However the critical issue regarding the community wage scheme is the basic question whether or not the voluntary agency is going to participate in the scheme. This question itself has major philosophical, ethical and practical considerations (Workfare Watch, 1997, Caritas Aotearoa New Zealand, 1998).

Although the introduction date of the Community Wage Scheme has passed the philosophical debate continues. Nationally, there have been rallies and demonstrations against its implementation and by mid-October some 88 Voluntary Welfare and Social Service agencies had signed the Communities with a Conscience pledge against Workfare sponsored by the Auckland District Council of Social Services (AUWRC,1998 p. 7). This pledge sets out minimum standards that will be adhered to when taking on paid or volunteer staff (Bradford, 1998, p.10)

Section 2.5 states: Our organisation pledges that we will not take on Community Wage referrals, nor will we be a Community Brokering Organisation for the workfare programmes (Bradford, 1998, p.10).

This rejection of the Community Wage Scheme was also expressed by the majority of the research respondents(76%). However, there were a few agencies(21%) who acknowledged they had not considered its' implications, required more information or they had and still were considering the scheme but had not arrived at any outright conclusion. These agencies admitted indecision and expressed comments that remained neutral. One agency, representing a further 3%, was favourable to the scheme with the proviso that no workers would be displaced by the it.

While the underlying argument is concerned with the top down way those on the Community Wage Scheme are forced into work and whether this is in fact moral or not, on an individual agency level, concerns were expressed regarding the real cost to the organisations in terms of:

• training
• resources
• supervision
• transport
• confidentiality
• client safety
• appropriateness for clients

Work and Income New Zealand (WINZ) recently announced that in the Manawatu region, 54 people had been placed in work through the scheme (Mathews, 1998). All of these people were long term unemployed. Nationally, during the first month of the scheme, about 1100 people were placed in community work out of a possible 20,000 (News Briefs, 1998).

The complexity of the presenting issues of the clientele of social services was a concern for the respondents. Often clients would arrive at a particular agency with a presenting issue and underneath it a whole list of other associated issues and the agency would do their best to help to overcome these issues whether or not they were funded for them. By attempting to meet the needs of the clients, other functions that the agency may wish to be involved with get placed on the back-burner.

One agency that used to be quite involved in social change and policy consultation commented,

"We have to concentrate on what comes in the door, the level of problems are more and more desperate".

Pressures creating these issues were described by the research respondents as Government policies, from the partial funding model of NZCFA and the devolution of former publicly provided Social Services to the residual model of welfare, community attitudes and the total reliance on the market to provide for all and everything in between.

The attitude of the community to the clients of social services was expressed as an issue. Much work has been done by the Government to reinforce their dominant neo-liberal theme of individual responsibility and all that it entails. Documents such as The Code of Social Responsibility and campaigns against alleged benefit fraud are just two Government initiatives that work to destroy a sense of community. Those requiring support through WINZ are deemed as 'lazy dole bludgers' and are alienated from society as they attempt to exist on meagre benefits with levels that prevent participation. Unfortunately, there are those in society that believe this propaganda and thus becomethe discriminators, others know no other political agenda than the neo-liberal harsh social polices that New Zealand has endured for the last fifteen years. The vulnerable groups of our society constantly face prejudice, discrimination and attitudes that expect people to be responsible for their own destiny rather than looking to the wider social structures and Government policies

Many responses referred to the difficulties they and their clients faced with Government agencies and in particular with WINZ (previously NZISS). In Palmerston North one agency has set up a new service which specifically works with clients who are having difficulties with WINZ. One respondent commented that the staff at their agency found WINZ hard to deal with and wondered about the ability of others not so skilled,

It was pointed out that some social service clients found the prospect of having to be involved with WINZ fearful,

Having to deal with WINZ is reported to be a humiliating experience. This Government Department does not show respect for their clients nor enable them to maintain their right to dignity and privacy.

As one organisation described:

While there is set eligibility criteria, there appears to be a grey area between what is law and what is the Departments' policy, which allows interpretation. This enables the employees of WINZ, who interview people requiring assistance, to be the interpreters of policy and therefore decide who is deserving or undeserving. Therefore, any decision is often solely up to the discretion of the person behind the desk. No-one can be value free and value and belief systems will directly influence any decision-making and therefore outcomes. While there is a review system in place this is a lengthy process and those seeking assistance are often in desperate situations which require immediate action.

The organisations that took up the invitation to participate in this research covered a wide range of fields of practice and this was reflected within the issues that most commonly affected their client group. They considered that a vast range of complex social issues made it necessary for a proportion of society to be users of community provided social services.

Many of the clients of Palmerston North's Voluntary Sector agencies are facing a daily struggle to exist and this underlying poverty causes a ripple-like effect onto all social services. Both agencies that provide short-term relief in the way of food parcels and the like and those who provide on-going support, counselling and advocacy are all feeling the effect with more referrals and clients presenting with a complexity of issues, often all related back to a lack of money and with no simple solutions. As described by the respondents, these desperate situations directly affect people's well-being, creating mental, emotional and physical issues such as a lowered sense of self-worth, depression, frustration, anger, poor health, inadequate diet, violence, a sense of hopelessness and despair and suicide.

The cost of adequate housing, since the introduction of the government charging market rentals is closely associated with the ability of social service clients to meet their own needs.

Prior to market rentals, the cost of State rental accommodation was set at 25% of income and this held the price of all rentals down. Today, according to one respondent, it is not unusual for families to be paying 40-70% of their income on housing needs. Consequently, the income left is inadequate to meet all the other associated needs of living.

The disproportionate cost of housing to income causes people to find solutions, some of which themselves create new issues. Many families sharing accommodation creates overcrowding causing unhygienic situations and vulnerability to sickness and disease. Constant relocation due to the inability to meet high rentals and the quest to secure cheaper accommodation causes dislocation where the whole family is never settled, there is a sense of unattachment to the area because of the constant fear of moving again, friendships within the neighbourhood do not develop, children experience many schools and this unsettledness may create behaviour problems and alcohol and drug addictions.

While the lack of employment opportunities can be the direct cause of clients presenting to a social service agency it can also be only one factor in a combination of many issues, such as the failure of the education system and stringent eligibility criteria for benefits through Work and Income New Zealand (WINZ), (previously New Zealand Income Support Service (NZISS)).

As well as resulting in a low level of income, unemployment has long term effects on the well-being of the individual concerned, their family and society. At a personal level, the following were all identified as results of unemployment; frustration, sense of failure, a lack of self-esteem, loss of dignity, stress, anger, violence, and alcohol and drug dependence. Within the family it can have an effect on the family dynamics causing; tense relationships, loss of communication, challenges to traditional gender roles, and family destruction. At the wider societal level, people who are unemployed are often excluded and alienated from participating in society creating a situation that fosters prejudice and discrimination.

The loss of income that occurs when gaining part-time employment while on the benefit because of stringent government policies in both the Inland Revenue Department (IRD), through secondary taxation and Work and Income New Zealand (WINZ), through the claw back provision and the reduction in accommodation supplement was seen as a major obstacle for people trying to improve their situations.

The State education system appears to be failing many and it is those who have been failed who often need to use the services provided by the Voluntary Sector. Many social service clients are poorly educated and with a lack of literacy skills combined with limited employment opportunities they are caught in the poverty cycle. Issues concerned with education were around the low level of funding the education system receives which directly impacts on the individual and their families. Additional costs come in the form of the expenses of extra educational activities, camps, outings etc., which, if not attended add to the alienation felt by low income families

Concerns were also expressed about Special Education 2000 , the newly implemented education policy aimed at providing for children with special educational needs. This policy targets the most needy 1% (through an assessment procedure) and it is up to educational settings to provide for all other children (who may have needs) who do not fit the criteria.

Fears for these children were voiced ; "Who is going to pay for these children's educational needs?" "Will families have to go without to meet the costs of specialist educational assistance?", "If the school does pay will they resent it?", "Will they stop the service too soon because of the cost?"

The Specialist Education Service (SES) itself was described as overloaded, with a waiting list for services. Special Education 2000 is going to create market competition between professionals and therefore begin the first step to the abolishment of SES.

The under-funding of the health system has created many issues for the clients of the Voluntary Sector. They are concerned with the reduction of services offered through the public health system and the inaccessibility of them. The waiting list or the new points system is a worry causing stress for those waiting for service and their families.

Youth were identified as a vulnerable group. The wellness of this group was an overall concern. Issues such as; the failure of the education system, school bullying, unemployment, poverty, society's attitude towards youth, knowledge and understanding of their legal rights, lack of appropriate social activities, peer pressure and alcohol and drugs, were all listed as particular to youth.

Many of these concerns effect the mental health of youth and this area was identified with such comments as; low self-esteem, lack of hope, feeling isolated and alone, no-one to listen, aggression, depression and suicide.

One respondent pointed out that there is a lack of preventative services for youth with agencies only providing services which are crisis related, thus compounding the issue as preventative work could create different outcomes.

Issues facing the families who are clients of social service organisations can be split into two levels the micro - the interrelationship between the family members and the macro- society's pressures on the family as a system.

At the micro level, issues were listed such as; low income.(from both wages or benefit), stress, lack of communication, lack of parenting skills, lack of extended family, lack of education, sickness, challenges between traditional beliefs systems and contemporary, behavioural problems, family breakdown, separation and divorce, absent fathers, blended families, abuse, intergenerational violence.

However, at the macro level, issues were described as; consumer rights, the lack of employment opportunities, the failure of the education system, low rates of payment for some employment, the reduction of Government services in both health and welfare including the non-acceptance of referrals by Children, Young Persons and their Families Service(CYPFS), the cost of education, mobility for employment, not enough financial help for families, the failure of Government Departments to better assist those gaining part-time employment and still requiring supplement assistance by a benefit, benefit system inappropriate, benefit levels too low, cost of housing, living costs, poverty and the fact that "modern living is complex and the rules change often".

Discrimination, prejudice, loneliness, isolation, constant changes in government policies, the inability to cope with electronic banking and elder abuse were all identified as issues for this group. The state of the health system is a constant concern to the aged with its' under-funding, hospital closures and overloaded waiting lists.

People with disabilities in our society face many on-going issues. Agencies who provide services for people with disabilities felt that, with the shift of Government funding for people with disabilities, from Welfare to Health with the State Sector reforms, a great deal was lost. Disabilities was once again placed in the medical model, a model many had previously fought strongly against. Many agencies supporting people with disabilities strongly opposed this move but the Government disappointingly went ahead anyway.

Today, the word disability can relate to; physical, emotional, intellectual, or sensory impairment or being aged. Within the range of disabilities there is an almost unspoken hierarchy. This 'rating' of disability appears most strong between those with congenital disabilities and those whose disabilities are caused through accidental means, with the Accident Compensation Corporation (ACC) and it's policies creating distinctions between people and differing outcomes, which affect both life-chances and life-style.

The public attitude towards people with disabilities is generally of tolerance. However there still exists incidents of prejudice and discrimination. It was expressed that society still has a way to go to an acceptance that all people have the same human rights.

The extra cost of having a disability was highlighted by agencies working with people with disabilities and it was stated that these costs was seldom recognised by others. Costs included not only the obvious like medicine and equipment but also the social costs such as always having to think about accessibility of buildings and the cost of support to enable inclusion in regular activities. The additional stress on families was also noted especially with 'community care' policies, difficulties in obtaining support and recently the newly established assessment procedures all people with disabilities and their families have to endure to be able to access and utilise any services.

People with disabilities were described as being in a difficult situation for employment opportunities. While those with physical disabilities sometimes required some adaptation of equipment or had access issues, those with an intellectual disability often required support in another way, by a support person. While no issues are insurmountable, these, along with public attitudes towards profit before people, limit the number of positions available and make unemployment and existing on a low level of benefit all too real for people with disabilities

Stringent Government policies were overwhelmingly seen as the cause of many of the issues the clients of the Voluntary Sector were facing. New Zealand has had right aligned Governments for the past fifteen years and their neo-liberal political agendas have altered the landscape of the country. One response commented,

The widening gap between the rich and the poor in New Zealand has been reported recently, revealing that 80% of households are receiving less of the country's wealth than fifteen years ago (Chatterjee and Podder,1998). There is an emphasis on profit before people. Strongly adhered to beliefs such as; the market will provide and individual responsibility, are forcing people into intolerable situations. Relative poverty is becoming a widespread phenomena.

As one respondent states;

The physical effects of poverty can be clearly viewed such as:

• more demand on foodbanks
• overcrowded accommodation
• homelessness
• sickness
• unable to participate fully in society
• a rise in burglaries

There are also the emotional effects which are sometimes more deeply hidden:

• low self esteem
• despair
• depression
• a sense of failure
• hopelessness
• alienation from society
• feeling suicidal

The Voluntary organisations were asked to indicate what the Voluntary Sector should be involved in from a list of suggestions.

48 agencies responded with either one or a combination of the following suggestions:

• actively working towards social change 73%
• complementing government provision in specific areas 67%
• involved in advocacy 63%
• involved in direct service provision 58%
• supplementing government provision in specific areas 23%

These responses suggest that those working in this sector see themselves as agents of social change at both the personal and the political level. The majority of agencies defined their role as, to complement the Government, not to supplement. This means they want to offer choices to society by providing alternatives to State provided services. They do not wish to top up or supplement the State services because the Government is not providing enough to meet the needs of society. .

One respondent considered that Voluntary agencies should be,

While the Government is devolving its role in welfare and social service delivery it is clear those in the Voluntary Sector still maintain there is a need for the State to have a strong leadership role and be the provider of essential core social services.

"The State must be responsible for providing essential social services, housing, education, health, employment. It must also provide an affordable income for those dependent on the State".

Furthermore they believe that the State, not themselves, should be the main provider of such services, defining their role as complementary, with the State supporting the,

"to support and complement services, provide together, rather than letting us (Voluntary Sector) pick up the pieces".

Many responses considered the States' role should be that of provider of adequate funding to the Voluntary Sector and a genuine partner in a supportive relationship between the State and the Voluntary Sector based on mutual respect and understanding.

Another role that was identified for the State, concerned standards of practice and on-going monitoring.

Overall, the Voluntary Sector looks to the State to be the provider of a comprehensive range of social services in; welfare, housing, employment, education and health. They see their own role as complementary to the State, not to supplement it or replace it. It is clear that those in this sector view the State as the main provider of funding. They strongly desire to be funded adequately to enable the fulfilment of the services they seek to provide.

In 1992 Mary Cull undertook research to ascertain the effects of funding requirements on the management of Voluntary Organisations, As her research also focused on Palmerston North agencies many of the same respondents would have been involved. When comparing the results of both studies, which are 6 years apart, it is interesting to note the similarities and the differences.

Cull's research had a 48% response rate with 27 organisations out of 56. This study had a 66% success rate with 53 organisations out of 80 responding.

Comments made by the respondents in Cull's (1992) report about funding applications were similar in nature. The respondents expressed difficulties in getting funds for administrative purposes, the increased amount of time taken up in seeking funding (1992, p47). Funding for staff salaries was revealed as a "major problem" and this is no different in 1998. Short-term contracts and the insecurity of funding created difficulties for organisations to be able to plan ahead (1992, p 48). The inability to plan successfully was also mentioned by the respondents of this research.

Cull (1992, p 45) writes "No organisations in the sample mentioned time consuming evaluations, needs assessment, or monitoring procedures as being demanded by funders". This differs from the comments forthcoming in this research, where concerns regarding technical funding applications and time consuming compliance costs were mentioned by 47% of respondents. In 1991 Robinson wrote, " As more organisations move to "contracting" then the reality will be a greater increase in paperwork from these requirements", and this is quite obviously the case.

Cull (1992, p 54) writes in relation to attitude to funding, "Voluntary organisations attract staff who respond to human need by rising to whatever challenge they have to face in order to improve conditions for others". This statement has certainly been true of the Voluntary Agencies in this research with cut backs on the salaries of paid staff occurring in order to keep the service available not uncommon.

While in 1992 respondents in Cull's research were feeling the effects of deinstitutionalisation, high unemployment and benefit cuts with increased work-loads, the 1998 respondents are experiencing similar spin-offs caused by some of the same and some different Government policies. Comments such as, " more, diverse and complex problems, families with financial problems and focused on crisis work and very little, if any, preventative work", are the same as comments in 1998 (Cull,1992 p.55).

Overall the two studies revealed similar results however the urgency and intensity of some of the Voluntary Sector groups financial situations does not appear to be so relevant in 1992 as it is in 1998. It also seems the predictions of Robinson (1991) and others and this factor was not such an issue in 1992.about how the contracting environment will effect the Voluntary Sector have come about.

This research, initiated by The Catholic Caring Foundation, focused on Social Services in Auckland where similar findings were made. The increase in demand on services with more referrals and more complex referrals which was noted in Auckland in 1997, applies to Palmerston North in 1998 as well.. The findings report how crisis work is replacing preventative work, this appears to have reached a point for some agencies in Palmerston North where the word replacing could now be replaced. Where crisis work is the norm and no preventative work is undertaken. Issues such as poverty, unemployment and housing were also mentioned as pressures affecting families.

The contracting environment is reported as creating "significant competition" and limiting "the degree of co-operation" between agencies. While these two factors where both mentioned in this research, the contracting environment itself was not identified as the determining factor. It was the finite amount of funds that was acknowledged as creating these factors.

The finding in Auckland, that the, "contracting environment is antithetical to holistic services...." was reiterated by some of the respondents, having to pull their service apart to fit into criteria for funding.

The Auckland research highlighted the same funding issues. The partial funding model which has developed requires agencies to secure funds from other sources and more agencies are relying on fund-raising or fees. There is also greater competition for the donor dollar

The fear of funder capture that was expressed in Palmerston North research was also reported in Auckland; "Reliance on state financial support can lead to services being provided on the basis of what will be funded rather than assessment of need".

In May 1998 the J R McKenzie Trust surveyed recipients of its' grants and some of the findings are similar to the findings of this research. Four findings in particular were reiterated by the respondents in this research:

• Organisations generally perceive the life is getting harder for the people they serve. Financial pressure was by far the most commonly mentioned factor
• On average, organisations receive income from 5 types of sources, and some have as many as 8 types of funding sources
• Anxiety about future funding is a major issue for many groups
• Ideas for new ways to prevent and tackle social problems largely centre around education of young people, improving community attitudes, and improving social policies at the macro level

This question offered the respondents a change to return to their Community Development Principals and to think about what sort of society they would like to be a part of.

Some agencies responded to this question with the obvious such as;

However many took the opportunity to comment referring to societal values and belief systems. Words such as; caring, community, co-operation and participation were used repeatedly.

State responsibility and Government policies were also referred to:

• Employment "access to work more evenly spread", "full employment"
• Health "equal rights" "available to all", "strong, publicly funded"
• Housing "good basic housing for all"
• Welfare "adequate income support to enable participation in community"
• Education "strong, publicly funded"

There was reference to the need to reduce the widening gap between the rich and the poor. People first was a strong theme amongst the responses, some stated it as simply as,

While another wrote;

An acceptance of difference and diversity was referred to, an end to discrimination.

Participation was valued highly,

Some comments offered a combination of attributes they would want in their ideal society,

Any change has to begin somewhere and this research has highlighted that there are many agencies in Palmerston North sharing similar if not identical issues. These agencies are all trying to cope with their concerns independently, in isolation. There needs to be a return to the traditions of the Voluntary Sector of networking and innovation. A return to Community Development strategies such as; naming the issues by declaring what needs changing and designing ways of creating that change.

Robinson, (1998a, pp11-12) has identified some useful strategies for survival for community organisations in the contracting environment:

• Be careful to analyse, and recognise the ideology the reforms so that you can make a conscious decision about the validity for your organisation
• Have a strong sense of identity and purpose
• Larger organisations will survive more easily- but big is not always better
• Get your own house in order
• Don't always say no-not all reform is bad
• Advocacy is important for credibility and effectiveness

By bringing together those agencies who are struggling because of the competitive partial funding model of Government Funding Bodies such as CFA new models of allocating funding could develop. Models that offer alternatives, which are based on co-operation and which allow for the Voluntary Sector to be an effective partner. As Dyson (1998, p66) states, "the rationing of funding will always be a reality". She alludes to the development of an effective relationship where there is trust and the Voluntary Sector can be involved in the design of policies and a party to the rationing decisions.

Much work has already been undertaken regarding the development of an effective relationship between CFA and the Voluntary Sector with such work as Taylor (1995) making valid suggestions that could be build upon.

As mentioned by a respondent there are no set standards or definitions of successful outcomes for accountability processes and therefore these are open to individual interpretation. Groups involved in these processes could design their own policies around definitions and standards which they deem fair and appropriate which would enable a move beyond a reliance on,' what is measurable , manageable'(Robinson,1998b, p.27).

The Community Services Council (CSC) already provides a forum for issues of the Voluntary Sector to be raised and solutions to be developed. This forum has enormous potential as an agent for change.72% of the survey respondents indicated they were affiliated to the CSC thus the first step of affecting any change is already in place, that of getting like minded people together.

The power of the people should not be forgotten. In 1971 a wide range and number of voluntary groups were supporting a call for "more integrated and co-operative endeavours" and from this the CSC developed (Palmerston North Community Services Council, 1996, p.3).. Today integration and co-operation can work to advantage the Voluntary Sector, they can counter-balance the competitiveness the scarce funding is creating.

As Ritchie (1996) points out;

He suggests that the role of the CSC will become increasingly important will need to develop a more pro-active role (Ritchie, 1996, p.46).

Other strategies could include:

• Any political action which provides an opportunity to bring the issues of the Voluntary Sector to the public's attention (such as the Hikoi of Hope and the Act on Poverty Week)
• Media Releases. Constant media attention will inform the wider public of any issues and keep them on the political agenda. Develop a Media or Public Relations portfolio that could be picked up by a Volunteer in consultation with management
• Advocate for your clients rights. Encourage and support the clients of your agencies to inform the Public and the Government about their situations
• Make a commitment to work at both the personal and the political levels
• Work collectively, join with others who share your issues, both locally and nationally
• Find out who is with you and who is against you., within both local Government and central Government and utilise those on your side

Over the last fifteen years of government led reforms based on neo-liberal ideology, the Voluntary Sector has evolved and developed as the State has devolved its role in welfare and social service provision. Voluntary agencies have had to adapt to new pressures on them, particularly more 'accountability' with government funding contracts requiring seemingly excessive requirements. The contracting culture that has developed has reduced previous strengths of the voluntary sector of collaboration, collectiveness, and co-ordination instead producing competition and gaps in service provision. New concerns are also apparent for the sector with the introduction of the Community Wage Scheme, with issues of its implementation yet to be fully realised. The Voluntary Sector is in survival mode. How to meet the ever-growing demands of a widening client base with limited, unsecured, funding is a constant dilemma. The detrimental effects of inadequate funding have been expressed by many in both this research of Palmerston North agencies and in other studies. There appears to have been a constant down hill slipping over the years. Therefore changes need to occur now, to eliminate the counterproductive elements in the Voluntary Sector, before the situation deteriorates even further.

Firstly I wish to thank Ian Ritchie for having the 'fire in his belly' for this research to happen. Without Ian this study would not have taken place. I thank him for providing the opportunity for me to complete this project for my third year placement paper of my Bachelor of Social Work. I also wish to extend my thanks to the Public Service Association for the use of their facilities in the Palmerston North office and to the staff who work there for their support.

I acknowledge the work of others in this field that have gone before me especially Jane Clark, Mary Cull and Helen Leslie. The knowledge they provided was extremely helpful to this research.

I would like to thank all those that participated in this research. Many people have had input into the study in various ways. Thanks in particular to those who personally supported this project and gave freely of their wisdom and advice, it was valued, in particular from Gail Munro, Sarah-Jayne White and Elizabeth Cooper. Thank-you also to John Thornley and the Palmerston North Community Services Council for allowing the research to be introduced to the community at their meetings.

I also acknowledge that some agencies were too busy to respond and I appreciate their situations.

I wish to acknowledge all the Voluntary Welfare and Social Service Organisations who are providing vital services to the community of Palmerston North.