Can Voluntary Organisations Survive the Bear Hug of Government Funding? – A View from Aotearoa New Zealand

Purchase-of-service contracting with voluntary organisations for social services in Aotearoa New Zealand is examined, in the context of international trends and as a part of the long run historical evolution of funding ‘technologies’. Gaps between the promise and the reality of contracting are examined, including some inherent contradictions. It is argued that it is even more crucial under a contracting regime for voluntary organisations to have a sharp appreciation of ‘what makes a voluntary organisation’ in general, and of their own vision, mission and values in particular – to resist pressures to remake voluntary organisations in [another’s] image’. This leads to the identification of a number of possible strategies for coping with the ‘bear hug’ of government funding, especially under themes of: accountability and stewardship; choice and responsiveness; and, planning and coordination.