Dunedin's community sector is facing tough times, with funding down and the demand for services high. The results of the latest Lottery Grants Board community funding round have come as an unwelcome surprise. Brenda Harwood looks at the issue
At a time when many Dunedin social agencies are struggling to make ends meet, the latest Lottery Grants Board community funding round has shocked the sector.
Organisations in Otago and Southland had applied to the Department of Internal Affairs for Lottery community funding of $5.4 million, but received only $1.4 million, Council of Social Services (Coss) Dunedin executive officer Alan Shanks told The Star.
This was down about $400,000 from 2013, when applications of $4.7 million were made and $1.8
million distributed in Otago-Southland.
The reduction in Lottery funding came at a time when the non-governmental organisation (NGO) sector was facing a financial 'storm', Mr Shanks said.
Of the 996 registered charities in Dunedin, 401 had made an operating loss averaging $25,000 in the past financial year a total operating loss of about $10 million, he said. 'This is resulting in organisations having to eat into their reserves those that have them to remain sustainable.''
With some organisations receiving significantly less Lottery community funding than in previous years, the pressure was even greater.``Many organisations had conservatively created budgets on the basis of grants they had received in previous years, so this has come as a shock to
them,'' Mr Shanks said.
'People are worried out there'. Alzheimers Society Otago manager Julie Butler told The Star that her organisation had received about $17,500 in Lottery community funding each year for more than five years. So, it was a blow to receive only $10,000 in this week's funding round.
'This creates a hassle for us, because that money could be used towards salaries and it is difficult to find funds to cover salaries', Mrs Butler said.
The result would be more fundraising, when its staff would much prefer to focus on delivering services to the community, she said.It feels like a kick in the teeth. 'We provide a valuable service that, if it was not here, would impact on the health system'.
Brain Injury Association Otago liaison officer Cathy Matthews said the organisation received $19,500 last year for salaries and $16,000 this year, along with a $2000 grant for vehicle costs. The reduction was significant in terms of the organisation's budget, with staff working reduced hours to keep costs down.
Mr Shanks said the high level of applications for the Otago-Southland funding, $5.4 million, reflected the pressure the NGO sector was under.
It also reflected a change in the funding application requirements, where groups were now asked to apply on a local basis, as opposed to under the umbrella of a national organisation.
The Lottery community funding situation highlighted the Government's marked shift in direction in relation to the community sector, which had been signalled over the past two or three years.
This included the standardising of government contracts and moving the funding framework towards a focus on outcomes and innovation, Mr Shanks said.
'This [financial] storm has been coming for a while, and now its effects are starting to really hit,' he said.
A Department of Internal Affairs representative said, when contacted, that as the funding process was not yet complete, it would be unable to comment at this stage.
