This review of the policy relationship between government and the non-profit sector is the final piece of work for the New Zealand contribution to the Johns Hopkins University international study of the non-profit sector. The project overall has produced extensive qualitative and quantitative information on the non-profit sector and an overview report, The New Zealand Non-profit Sector in Comparative Perspective.
The relationship between the non-profit sector and government can be characterised as constantly evolving and changing, those changes being substantial on some occasions and more subtle and nuanced at other times.
The public sector reforms of the 1980s and 1990s had a significant effect on the relationship between government agencies and the sector, and saw an increase in funding to the sector. Historically, government grants supported organisations to pursue their own aims, but the shift to contracting has meant a closer relationship between government and the sector.
The approaches to contracting have raised questions about the extent to which non-profit organisations are meeting government goals rather than pursuing their own missions. Sector independence and effective engagement between the sector and government remain critical issues, with both government and the sector continuing to explore ways to build effective working relationships. Issues of compliance and risk aversion, shaped by both contracting and legal requirements, are an important influence on this aspect of the relationship.
For government, contracts ensure accountability, especially financially, and have created opportunities for government to support a more diverse range of service providers. For the non-profit sector, it is often seen as shaping organisational activities, creating significant compliance requirements and limiting independence and autonomy.
In the past decade, there have been moves to build stronger and healthier relationships between government and the sector. The appointment of a Minister with specific responsibility for the sector (1999), creation of the Office for the Community and Voluntary Sector (2003), and the Statement of Government Intentions for an Improved Community-Government Relationship (SOGI) in 2001, illustrated movement towards closer relationships. A range of other initiatives followed, such as increased tax relief for contributions to non-profit organisations.
Drawing on the SOGI framework, a number of government agencies have established national-level mechanisms for building and developing relationships with non-profit organisations in their respective sectors. Health, housing, sport and recreation, international aid and development and services for children and families provide examples.
The nature of these relationships varies, with most government agencies outside Wellington interviewed for this project appearing to know little about the SOGI framework. A recent review of the SOGI by the Association of Non-Government Organisations of Aotearoa calls for the Government to note the value of such a statement, to formalise the way it is implemented by government agencies, and to regularly evaluate progress in government’s responsiveness.
At a local government level (local authorities and district health boards), there is also considerable variation in the relationships with the non-profit sector.
Understanding the nature of the relationship between iwi/Māori organisations and government was an important part of this project. The Treaty of Waitangi gives iwi/Māori a direct relationship, rather than a relationship that is mediated through their status as independent organisations.
Moreover, Māori view their accountability to iwi as being as important as their relationship with the Crown. The study identified differences among Māori concerning the nature of their relationships with government. Active work on building and developing these relationships has been important in recent years, with the result that closer attention now appears to be paid in New Zealand to issues of diversity than is observed in other Anglo-Saxon countries that participated in the Johns Hopkins University international comparative project.
Umbrella groups – important organisations within the non-profit sector infrastructure – vary considerably in resources and capacity to actively influence the policy process and engage in advocacy work. These organisations report adopting a range of strategies when engaging in policy processes. The document identifies a number of examples of successful policy engagement by both umbrella groups and sector organisations more generally.
Non-profits also drew a distinction between being able to influence policy development from the outset, which they saw as highly desirable, from being engaged at the end of the development process to help develop implementation strategies. Historically and internationally, advocacy is a central role of many non-profit organisations. Performing this role can create tensions between non-profit organisations and government, particularly when non-profits receive a large proportion of their funding from the state.
Non-profit organisations take a range of legal forms, depending on their purpose and structure. Legislative oversight occurs through a range of statutes and there is a range of legislation specifically relating to Māori organisations and entities. In addition to legislation directly shaping the sector’s organisational forms, non-profit organisations are also significantly affected by government legislation in areas such as employment, health and safety requirements, Treaty of Waitangi obligations and professional licensing. Most recently, the Charities Commission has been established to regulate those non-profits that operate as charities.
Government and the non-profit sector have a longstanding and constantly evolving relationship. Issues of independence, accountability, contracting, Māori/Crown relations, and capacity within the sector are at the centre of current relationships as that relationship develops in the early 21st century.