Many intersecting factors influence Aotearoa New Zealand’s funding landscape. Alongside a growing charitable sector where demand for funding is outpacing available resources in many areas, several recent developments are likely to shape funding opportunities in the years ahead.
Keeping across these developments helps ensure your organisation is best placed to adapt and respond appropriately.
Changes to the Lottery Distribution Committee Structure
In April 2026, the Department of Internal Affairs (DIA) announced changes to the structure of lottery distribution committees, effective from 1 July 2026.
The key changes are:
- All current lottery distribution committees will be disestablished.
- Six new regional committees and one new national committee will be established.
- A new sub-committee, within the new national committee, will be established to distribute the proceeds from online casino gambling, expected to begin in 2028 (date to be confirmed).
These changes are being signalled as a shift toward a more strategic, data-driven system, and a structure that is simpler for applicants to navigate.
The DIA has also commenced sharing more details of the restructure through emails to previous applicants and via the Community Matters website. As the DIA is still defining the funding approach for each new committee, initial indications suggest that more detail will be available from July 2026.
A change this significant will naturally raise questions about how the new committees will operate and what their funding priorities will be. However, the DIA has stated that while some criteria may change, the Gambling Act 2003 remains the basis for all funding criteria. It has also reassured applicants that these changes do not affect the total amount of lottery funding available.
We recommend that community organisations and not-for-profits monitor ongoing developments, regularly checking Community Matters for further updates and information.
Local Government Structures and Funding Priorities
Changes continue to unfold across all levels of government funding, from local councils to central agencies. Strategic Grants’ Grants Strategist, Emma Redgrove, unpacks what these government funding changes mean for community organisations in this article.
Our recommendation to for-purpose organisations remains unchanged: regularly check your local council’s updates, monitor legislative developments such as the Local Government Amendment Bill, and keep an eye on central government announcements.
Budget 2026 – Donation Tax Credit Settings
The 2026 Budget introduced changes to the donation tax rules: only donations up to $100,000 will be eligible for the 33% tax rebate. This change is before Parliament and is intended to come into effect from 1 April 2027.
Since the announcement, for-purpose organisations, sector experts and donor-advised funding organisations have voiced their concerns that community projects and programmes, and capital campaigns funded with larger individual donations, could be placed in jeopardy. We recommend reading the policy to determine how this change may affect your organisation. More information on the Government’s proposal is available here.
It is worth noting that this donation tax rule change won’t affect every for-purpose organisation. For those that are likely to be affected, we recommend the following:
- Keep informed of updates from donor-advised funding organisations. Donor-advised funding organisations with contestable funding rounds such as Community Foundations in Aotearoa New Zealand may be impacted by the donation tax change. Because each Community Foundation receives donations of varying sizes, the effect in any given region will depend on local giving patterns.
- Review your fundraising strategy to see what diversification of income may be possible.
- Be proactive and contact your large donors before the tax change takes effect. A conversation around payment timing and future giving plans, aligned to your stewardship plan, may be appropriate.
- Add your voice to the conversation about the proposed change.
The NZ charity sector has demonstrated it is a strong advocate and lobbyist for change. For example, the Government dropped their proposal to tax charity income after receiving compelling feedback. Similarly, sector feedback on the Online Gambling Bill resulted in the addition of a 4% levy that will be distributed to communities.
Final Thoughts
Significant changes to the funding landscape are on the way and staying informed and engaged is more important than ever. It is important that for-purpose organisations understand the changes to the Lottery Grants Board committees, local government structures and funding priorities, and charitable giving incentives. These changes could directly affect upcoming funding rounds, long-term planning, and future sustainability and growth.
Being proactive and well-informed will help your organisation identify opportunities, anticipate challenges, respond effectively, and make sound decisions about your funding strategies and continue providing positive impact within your communities.
If you would like to speak to us about your grants programme and the support we can offer your organisation with our range of consultancy services, please do get in touch with our NZ team at [email protected].
About the author
Alison Black is a Grants Strategist at Strategic Grants with over 17 years of experience working across the for-purpose sector and education sectors. Alison specialises in grant seeking and strategic review and has worked closely with many dedicated for-purpose professionals and volunteers throughout Aotearoa New Zealand.
Alison holds a Bachelor of Science (Statistics).