Inclusive NZ Brayden Smith The changing environment in the community sector Introduction Unprecedented amount of change Challenges facing the sector How is the sector responding The evolution of financial reporting ID: 595791
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Community Networks Aotearoa / Inclusive NZ
Brayden Smith
The changing environment in the community sectorSlide2
IntroductionUnprecedented amount of changeChallenges facing the sector
How is the sector respondingThe evolution of financial reportingThis is a highly interactive session, so please feel free to contributeSlide3
The Not-for-Profit Sector as it stands…There are over 27,500 registered charities in NZ operating within the NFP sector
…and an indeterminable number of other incorporated entitiesSlide4
The Not-for-Profit Sector as it stands…Slide5
The Not-for-Profit Sector as it stands…
But lets not forget… Pressure makes diamondsSlide6
The Not-for-Profit Sector as it stands…Some are embracing the change…Slide7
The Not-for-Profit Sector as it stands…Others are being unwillingly dragged along…Slide8
The Not-for-Profit Sector as it stands…Unfortunately not everyone will survive…
…and that's a good thing……and a terrible thing!!!Slide9
The Not-for-Profit Sector as it stands…Slide10
The Not-for-Profit Sector as it stands…Slide11
The Not-for-Profit Sector as it stands…
The signs are everywhere…Slide12
The Not-for-Profit Sector as it stands…
The undeniable truths:Funding is getting harder to secureFunders expect more and better outcomes for their funding dollarEfficient and effective organisations are winning the funding race… Others are being left behind… Niche organisations in particular are strugglingConsolidation is an inevitable outcome (for some)The sector is corporatising (slowly but surely)Slide13
The Not-for-Profit Sector as it stands…Organisations must give som
e thought to…Slide14
The Not-for-Profit Sector as it stands…
Keys to standing out from the crowd:DifferentiationDynamicInnovativePartner/collaborate with othersDemonstrate the needTell your storySlide15
Financial Reporting ChangesFinancial reporting world is a crowded space
New four tier framework implementedAimed at simplification, but sometimes you get the oppositeSignificant majority of NFP entities are reporting under the Simple Format Accrual or Cash RegiemesSlide16
Financial Reporting Changes
What are the issues:Not all funders understand changes (yet)Funders preference for audit opinionsCompliance with new standards currently lowCA Firms are the worst offendersSlide17
Financial Reporting ChangesIt's no coincidence
that financial reporting formats are prescribed (and restrictive)Data analytics / Data mining is inevitableFunders will use data to determine who is efficient and effectiveFunders will use this information in making funding decisionsSSP documents are of mixed quality (skewed towards low)Slide18
Tips on How to Prepare a Good Statement of Service Performance
No minimum (or maximum) numbers of outputs or outcomes. Use what is most relevant for youInformation is non-financial and supplements the financial informationFocus on what you achieve (e.g. how many people you reached / how many times you carried out an activity)Some outputs just aren’t quantifiable (but you can still describe it)Slide19
Tips on How to Prepare a Good Statement of Service Performance
Outcomes are forward looking, i.e. what are you trying to achieve, not what have you doneCharities Services isn’t judging your performance as a charity by what you put in the SSP (yet)Slide20
Closing RemarksUnprecedented amount of changeSignificant challenges
facing the sectorSome level of evolution will be requiredSlide21
Questions Slide22
DisclaimerThis presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenter and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered.