The contribution of volunteer groups

My father was once a volunteer driver for the Cancer Society and I got to know first hand of the tremendous support they give to people affected by cancer.

Helping the Cancer Society prepare for their annual Daffodil Day appeal with the Minister of Statistics Clayton Cosgrove and Olympic Ambassador Danyon Loader was a small way to acknowledge this support.

We always knew that non-profit groups like the Cancer Society make a huge contribution to New Zealand’s economic well-being. And now for the first time a report by Statistics New Zealand has revealed just how much.

In the latest figures from 2004, Non-profit organisations contributed $3.4 billion (or 2.6 per cent) to New Zealand’s Gross Domestic Product (GDP).

This is a massive contribution and highlights how important the work of non-profit organisations is for a modern democracy and economy such as ours to function effectively.

But wait, there’s more.

In the same year, over one million Kiwi volunteers gave an incredible 270 million hours of unpaid labour. And if this labour was valued at market wages the overall contribution of non-profits rises to $6.95 billion or 4.9 per cent of GDP – the same as the entire construction industry.

Other highlights of the Non-profit Institutions Satellite Account: 2004 include:

• There were 97,000 non-profit institutions as at October 2005;
• Only 10 per cent of non-profits employed paid staff;
• Kiwi volunteers work an average of 5.1 hours per week, compared with 3.2 hours in Australia and 3.1 hours in Canada;
• The largest economic contribution was from the social services sector, contributing 23 per cent of the total.

Why is it helpful to know all of this information?

The Labour-led government is committed to building the capacity and capability of the community and voluntary sector. Having better information is vital to fulfilling this commitment.

Better information leads to better policy decision making, and a more informed debate. It also leads to a better recognition and a greater public consensus of the contribution made by the non-profit sector.

It is always heartening to know that so many Kiwis do volunteer their time to help and support their communities and non-profits such as the Cancer Society, day after day, hour after hour without fanfare.

I hope that this new report goes some way to recognise their fabulous contribution to our communities and our society.

Luamanuvao Winnie Laban
Minister for the Community and Voluntary Sector

August 2007