SEWN NEWS Hereturi-koka / August 2016 Welcome to the August / Hereturi-koka Social Equity & Wellbeing Network (SEWN) newsletter. ____________________________________________________________________________________________________________________ SEWN HQ Pokemon Go and Marginalisation With the latest Pokemon Go craze I was excited to get out and about with my son walking areas with the dog we hadn’t been before. When we play these sorts of online SEWN AGM and games it is a rule that we never pay for in-game ad- Inside August: celebration! vantages. Driving around finding Pokestops and Gyms it 1pm, Thurs 15th was very soon clear that it was almost impossible to com- · Ditch ‘Non-profit’? September pete against those that were paying. I concluded that · Performance Re- Christchurch Pokemon Go is a lot like marginalisation! porting Community Those kids and adults that could afford to pay to get · Social Enterprise House. ahead leaving the rest of us with unconscious Pokemon. · Social Innovation So much so we got demoralised and stopped playing after · Recycling for Fam- Not sure if you're a a week. ily Products member? Contact At the basic level Kids would also need access to a · Lots of funding the SEWN office and smartphone, plenty of mobile data, often a car (driven by opportunities we can make sure an adult with time) or bus money, to keep collecting the you're all signed up. Pokemon. How many of our kids have watched the ex- · Upcoming Nation- citement of this game and couldn’t participate? How many al Conferences [email protected] of our kids feel like they are missing out yet again be- cause they or their parents can’t afford it? How many of our kids then begin to think they haven’t got a right to these newest technologies, don’t study it or think they have a role in the future world of tech and find their dreams diminished? Michelle Whitaker, SEWN Clare in the Community With thanks to the Guardian and Harry Venning Newsletter for and by the Community Sector in Waitaha (Canterbury). Email items for SEWN’s September newsletter to [email protected] by Thursday 25th August, 2016. Keep up to date with the latest relevant information by ‘liking’ us at https://www.facebook.com/SEWNChch SEWN NEWS Love Otautahi our work? Support us at givealittle: 1 http://givealittle.co.nz/org/sewn/donate August / Hereturi-koka 2016 Is It Time to Ditch the Word “Nonprofit”? Although philanthropists and social impact organizations differ in many ways—from their approaches to funding to their levels of transparency and innovation—the sector collectively seems to agree on one thing: The word “nonprofit” isn’t cutting it. As Suzanne Perry wrote back in 2008, “Why should groups describe themselves by what they are not?” Nonprofit professionals, after all, don’t focus their energy on not enriching shareholders, as the word im- plies. Speaker and nonprofit executive Dan Pallotta went further, writing: “The word ‘profit’ comes from the Latin noun profectus for ‘progress’ and the verb proficere for ‘to advance.’ ‘Nonprofit’ means, etymologically, nonprogress. This is not a simple case of mistaken meaning. It’s a dangerous unconscious statement of intent, or lack of it.” This moniker, Pallotta argues, only perpetuates negative attitudes toward charitable or- ganizations. He suggests “humanity sector” as a term that better reflects the shared goal. Meanwhile, Robert K. Ross of the California Endowment has promoted the term “delta sector,” in reference to the Greek symbol for change. Others’ suggestions include social sector, third sector, independent sector, and social good sector. The sector has already navigated similar changes in terminology, such as the decline in use of the word “charity.” As organizations have evolved, so has the terminology. To elevate the sector’s authority and abil- ity to solve the world’s most dire social problems, individual organizations and media outlets must now adopt a name for it that indicates the value and power of its work. SEWN asks what do you think? Delta Sector, Community Sector, Social Sector, Third Sector, Independent Sector, Civic Sector, or Social Good Sector? Full article: http://ssir.org/articles/entry/is_it_time_to_ditch_the_word_nonprofit Crucial Non Profits More Precarious "Non-Profit Institutions Satellite Account: 2013" released mid June by Statistics NZ is only the second time ever this kind of information has been collected in New Zealand. The report compares 2004 with the most recent data available from 2013. From 2004 to 2013, the number of non profit organisations has grown by 18% to over 114,100, and the sector's overall 'value-added' contribution to the economy has grown by 38% to $9.4billion per annum (when a notional value for volunteers Is included). The total non profit workforce (paid employees and full-time-equivalent volunteers) has dropped 10%, but at 215,300, it still compares well with other more high profile industries like Tourism (employing 168,000) or Agriculture (employing 40,000). While the number of paid staff increased 30% (up to 136,750 in 2013), the number of full-time- equivalent volunteers decreased by over 40% (down to 78,500). Garth Nowland-Foreman, a director of the Centre for Not for Profit Leadership; "Such a massive drop in volunteering leaves the sector in a very vulnerable position. It is highly reliant on volunteers, with 90% of non-profits employing no paid staff." The number of people doing some voluntary work has in- creased by 21% and now engages 1,230,000 people. However, Nowland-Foreman describes how the bottom has fallen out of the amount of time they volunteer (down 42%). While today's figures show a massive 68% increase in expenditure, it has only been matched by a 65% increase in income. As a result, 7 out of 10 sub-sectors are eating into their reserves by 2013 ('dis-saving' under System of National Accounts terms) compared to only one sub-sector doing so in 2004. While government funding appears to have increased, a large part of this is attributable to better data collection in 2013. Funding from business and philanthropic trusts are both making less of a con- tribution, leaving non profits more reliant on private donations and sales." For an easy-to-read one-pager, see the link at www.facebook.com/SEWNChch/ The full report and further information is available at www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/non-profit-2013-mr.aspx SEWN NEWS Otautahi 2 August/ Hereturi-koka 2016 One Voice Te Reo Kotahi / Social Equity & Wellbeing Network There appears to be a lack of clarity about the difference in roles of SEWN (formerly Council of Social Services) and OVTRK. The two networks have worked together to write this explanation. Both of the networks uphold wellbeing and focus on third sector / non-profit groups and organisations in Greater Christchurch. SEWN was established many years ago to bring central and local government and non-profit groups together to address social issues collaboratively. Over the years, as its focus changed in response to the changing social services environment, it became primarily a resource and advocate for non-profits working to reduce marginalisation and build community and social wellbeing. This aim was formalised in 2015. Its mahi includes capacity building for the sector, and acting as a sector communication nexus. As an incorporated society with Charitable Status, SEWN members elect its Board. OVTRK was established in 2011 as a non-profit (Third) Sector voice. For some the focus was on the Recovery from the earthquakes, for others on the desire for a more cohesive Sector. A broad range of Third Sector Organisations (TSOs) including those involved in the sport, culture, environmental and social well- being areas have put themselves on the OVTRK Register. People involved in those TSOs can serve on an Organising Group with tangata whenua and tangata Tiriti co-Chairs. OVTRK currently focuses on advocating for the value of TSOs, promoting Te Tiriti o Waitangi-based, multicultural future, and creating communication conduits for Third Sector voices to be heard in the government (local, regional and national) earthquake Regeneration phase. OVTRK speaks from, not for, the Sector. XRB based Performance Reporting This is the first year for Charities to provide XRB based Performance Reporting. In their latest news- letter, the NZ Trustees Association takes a look at what’s been happening: XRB Reporting and the lifting of the bar of Audit and Financial Review compliance has seen some unexpected results - · Some Chartered Accountancy firms losing their ability to conduct full Audits · Sizeable increases in fees for Audits · Sizeable increases in fees for Financial Reviews · Small to Medium Charities being stretched both financially and resource-based to comply · A gridlock of need by entities for Audits and Reviews · An absolute windfall for the accountancy profession · DIA Charities Services being ensconced to receive and oversee XRB Performance Reporting Financial and resourced-based suffocation of small charities is a real concern. While the XRB Report- ing was long overdue for finance firm failures leaving many investors out of pocket, you can’t help but feel there has been a sledgehammer for a peanut reporting system imposed on charities - that will have far reaching implications for small to medium charities in particular. Undoubtedly anyone involved with a charity wants transparency and accountability, but at what cost? Should the accountancy profession be prospering so much from funds that were destined for charita- ble purposes? Questions now being asked within the Charitable Sector are centering on whether the 30% tax exemp- tion for registered charities is worth the compliance costs recently created for reporting to the DIA Charities Services through XRB: particularly charities that do not seek grants and are not donee sta- tus.