An investigation into the funding criteria used by funding organisations in New Zealand

Huang, Hedy Jiaying
Hooper, Keith
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Master of Business
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Auckland University of Technology

This research project aims to investigate the funding criteria adopted by funding organisations in New Zealand. The qualitative research methodology and semi-structured interview method is adopted to investigate the critical pieces of information, both financial and non-financial, that is utilised by funding organisations in grant-making decisions. The most important finding of this research project is that there is no strong pattern emerging as to how funding organisations determine how to allocate their funds. Outcomes and key people are important to funders but much of the financial information is less regarded and there is no consistent approach. To explain this lack of established criteria, it is noted from the literature and borne out by this research that many trustees and managers in NFP organisations often lack expertise in business, especially in accounting and management. Idealism and enthusiasm compensates for business skills. Thus, much of the funding organisations' allocations rely on instinctive feel for the projects proposed and the character of the applicants proposing them. The Charities Commission may be able to help funding organisations refine their approach by introducing a standard guidance statement. To this end, the research findings of this study may be useful a reference. More explicitly, recommendations are made. The additional benefit to the NFP organisations seeking funds is these recommendations would indicate what would be more relevant information to grant-making decisions of funding organisations.

Charity , Not-for-profit , Funding criteria , Funding organisations , Outcome reporting
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