www.wairaka.net/ubinz/IR/VoluntaryWelfarePN.html

from a 1998 paper by Cindy Johns,
summarised by Carolyn Wait,
NZ Council of Social Services
 

This research has identified 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. The researcher highlights the need to return to the traditions of the voluntary social services sector or networking and innovation to design ways of creating and implementing strategies for positive community development.

The issues identified by the Palmerston North voluntary social services are the same or very similar to the issues which face the whole of the sector in New Zealand.
 

The purpose of the 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.
 

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 the voluntary social services sector.

The issue of underfunding was overwhelmingly considered a weakness and an overriding major issue affecting the majority of voluntary agencies. Underfunding has major spin-offs causing a wide range of effects which were also alluded to in the responses. The overall lack of adequate funds this sector receives places it in an extremely vulnerable situation.
 

Finding adequate funding was the most dominant concern of voluntary agencies surveyed. The user pays philosophy the government espouses does not work in the voluntary sector. The service users are overwhelmingly unable to contribute to the cost of service provision, for many it is their financial position that has forced them to become service users. The voluntary sector was bogged down in the day to day function of mere existence, much akin to the oppressed client base they are servicing.

Over two thirds of the agencies reported some form of government funding as their main funding source. However, the respondents overwhelmingly claimed that the government funding they received was inadequate.
 

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, "We have to make do with less and do more with less."
 

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 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.

A dependency on donations and fundraising 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: "Individuals are compassion weary. Everyday new envelopes are in the letterbox or someone's coming to the door selling their lollies, people are compassion weary".
 

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 n the voluntary sector."
 

The autonomy of the voluntary sector, that is the ability to respond voluntarily to an identified need 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" after direct confirmations of the fear that some organisations have of losing their autonomy and with ft the ability to make their own decisions and determine their future directions.
 

The constant stress and worry of keeping running month to month affects the stability of any agency and its long term and strategic planning. As one organisation comments, "It's a bit of a joke. They tell us to do Strategic Planning but when it comes down to it less than half the funding is guaranteed every year and we're right on the edge, running in a slight deficit budget most years. So, we are looking at less than half funding but that's not even confirmed, that's a yearly contract that comes up. We've been told that won't decrease. The rest is all competing at the whim of the public, donations, Trusts and really how much money they have available at a certain year, it's really hard to plan.

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 it 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 synergy and creativity of the work environment. Innovation, a previously acknowledged 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.

It appears that those agencies not working in 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 able to buy into the contracting culture more easily with the purchase of 'outputs' from the larger Governmental funding bodies such as NZCFA.
 

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 ability to gain these types of resources appears to be coming increasingly vital with the environment for funding so competitive. As one respondent stated: "Because of shrinking statutory funding these factors are becoming crucial to the ongoing delivery of services to this region, where needs are increasing and the Government is determining that those needs will be met by the community".
 

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. 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 workplace. This creates such mentioned issues as: worker burnout, 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).

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.
 

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.
 

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 Acts (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.

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 undergo comprehensive training in many cases. Thus the high expectations on volunteers may also be adding to the reduction of their numbers.
 

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.

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. However, as they are now being required to provide many services formerly in the State's domain, 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.
 

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.
 

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 changes 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 in Palmerston North were supporting a call for "more integrated and cooperative endeavours" and from this the Community Services Council developed. Today integration and co-operation can work to advantage the voluntary sector, they can counter-balance the competitiveness the scarce funding is creating.
 

Over the last fifteen years of government led reforms based on neoliberal 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 coordination 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.