Charities essential part of social infrastructure as pressure grows on Government finances

By Shaun Greaves, Chief Executive Presbyterian Support Northern

Finance Minister Nicola Willis has made it clear – the government will not be “splashing the cash” around when she announces New Zealand’s Budget on May 28.

Instead, it is likely to be a budget of fiscal restraint, reprioritising expenditure and managing costs incurred by the fuel crisis.

At the same time, Presbyterian Support Northern (PSN) – which delivers frontline services including ageing support, family and youth services, mental health crisis support and family violence crisis and prevention – is seeing increasing demand across all areas of our work.

Through services such as Enliven, Family Works, Lifeline and Shine, demand is rising – driven by a range of factors including cost-of-living pressures, financial stress and increasing complexity of need.

PSN is not alone in this regard. In its recent 2026 Community Needs Survey, the Catalytic Foundation found that demand on charities has increased.

According to the Foundation, it’s not just the number of people seeking help that has increased but also the complexity of their situations with many families requiring multiple forms of support at once.

Furthermore, cost-of-living pressures have overtaken housing as the most frequently cited issue.

The Catalytic Foundation’s data supports what we’re seeing at PSN across our services. High rents, increasing food prices, power bills and the cost of fuel are putting immense pressure on families.

With limited new spending from the government, it falls upon charities to figure out ways of continuing to do the mahi not as a funding recipient, but as a key contributor to the effectiveness of the wider health and social system.

PSN provides a continuum of frontline support. These services operate every day in communities, supporting people at the right time, improving outcomes and reducing pressure on hospitals and state-run social services.

Like many providers, we are being squeezed by mounting cost pressures. This is the perennial challenge – to do more with limited resources to meet ongoing and growing need.

With the government’s emphasis on social investment and accountability, it’s up to us to demonstrate not just where demand exists but how our services contribute to better system performance and improved outcomes for people and communities.

PSN is strengthening its focus on evaluation and measurable outcomes. We are committed to evidence-based practice and ensuring services deliver meaningful, quantifiable impact for communities.

For example, a recent social return on investment (SROI) report into our Enliven Home-Based Support Services found that $112.4 million of social value is generated in a single year across Enliven’s client base in the upper North Island.

The key is obtaining that elusive funding dollar and making it work for the best social outcome possible.

Most government contracts do not include CPI adjustments, meaning the level of financial income from government contracts does not keep up with the annual increase in the direct costs of running these contracts. 

It’s even more difficult for services that receive no government funding at all – such as Lifeline, our mental health support line which is funded entirely through community donations and PSN’s operations budget.

This is where community support and partnerships come into play. Targeted donations, whether community grants, funding from trusts or individual donations – all make a difference.

For example, PSN recently secured a $55,000 grant for specialised training equipment for home-based support workers, including full-body hoists, hospital beds, slide transfer sheets and patient-handling manikins.

It was made possible through charitable grants and supportive suppliers.  Importantly, PSN will share the resource with another home support provider meaning even more staff will learn complex care techniques and advanced in-home support skills.

Ultimately, this funding will help older people remain in their own homes for as long as possible, including people with complex needs, multiple health conditions, mobility challenges and those choosing to receive end-of-life care at home. Generally speaking, care in the home is much more affordable for the government than hospital beds.

As the Government continues to flag austerity measures and moves funding away from social initiatives to core public services, charitable grants and innovation become increasingly important for the charity sector.

Crisis is fast becoming the norm – whether driven by fuel, housing, the cost of living or severe weather events. The challenge is how we respond in a more joined-up and sustainable way.