Navigating Local Government Grant Funding Amidst Council Reform
Local government in Aotearoa New Zealand is facing its biggest reform in decades. As councils navigate tight rates caps and upcoming structural reorganisation, the government community grants funding landscape is set to shift.
Here is a breakdown of what’s happening behind the scenes of local government and how this might impact your organisations next grant application.
Core Services Focus
Changes to the Local Government Act are underway to remove the Four Wellbeings from legislation, directing councils to focus on delivering core infrastructure and regulatory functions rather than recognising broader social, economic, environmental and cultural outcomes as a key part of council’s role.
Impact - Justification for funding based on the Four Well-beings such as general social wellbeing or cultural outcomes are likely to carry less weight during the application assessment process.
Strategy - Clearly demonstrate the value of your project by aligning it to the council’s strategic direction and core service delivery directives, rather than broad wellbeing or impact claims.
Rates Capping
With the central government set to implement a cap on annual rate increases, councils will soon be forced to operate within tight financial constraints.
Impact - This capping is likely to shrink the discretionary funding pools available for community grants. Consequently, funding assessors will be under increased pressure to minimize risk and maximise cost effectiveness prioritising projects that demonstrate strict value for money and clear returns on investment.
Strategy - When drafting your application, explicitly demonstrate cost-effectiveness by showing how your project delivers high value for money and a clear return on investment.
Council Amalgamation
Current local government reform is set to amalgamate local councils into larger unitary authorities, meaning funding decisions risk becoming centralised and distanced from the grassroots level.
Impact - The assessment panel may lose the nuanced, hyper-local context to fully appreciate the value of small, niche neighborhood initiatives. This shift can make it harder for grassroots projects to stand out against larger, regional priorities.
Strategy - Be sure to clearly explain the context and value of your project by using data, testimonials or case studies to provide assessors with understanding they might otherwise miss.
Planning for Funding Uncertainty
Given the broader context of council reform, the local government community grant funding landscape is uncertain and planning for this unpredictable funding horizon is essential.
Impact - Failure to properly plan for uncertainty in council funding can result in organisations not having the funding they need to deliver on services to the community.
Strategy - Start preparing early by building an adaptable operational model. Take steps to diversify your funding streams, and treat current grant cycles as opportunities to grow your grant writing expertise, positioning your organisation to withstand future changes as they come.
Navigating a changing local government funding context can be challenging. At Keresdale Advisory, we can help your organisation understand what is happening behind the scenes and how you can adapt your approach and applications accordingly. No matter what stage of the grant application lifecycle you are at, we are here to help.