Auckland City Mission flush but broke

People queuing at the Auckland City Mission. Photo / Doug Sherring

The Auckland City Mission is stretched to the point it can't take on more clients but won't draw on millions put aside to replace its dilapidated buildings.

It also can't touch a $10 million nest egg managed by an associated charity from which the Mission receives about $350,000 a year, Auckland City Missioner Chris Farrelly told the Herald.

The Mission's winter fundraising appeal began this week amid reports that its services are overrun. It's Homeless Outreach Team of six social workers, for example, each had 25 clients.

It was reported that money as well as food was much needed.

The Mission reported a surplus of $1.6m in its latest accounts (to 30 June 2016) filed with the Charities Commission. But Farrelly told the Herald that although the Mission's accounts look healthy, there was very little money it could access.

The reported surplus appears to be more than offset by the transfer of $1.9m to a "Facilities Development Fund" to go towards replacing its ageing buildings, estimated to cost $70m.

This was about twice the amount that was put into the building fund the previous year.

Farrelly said the Mission had little control over how much went into the fund because many donations were made specifically for the rebuild.

The Mission is also backed by a $10m nest egg managed by the Auckland City Mission Foundation, an associated charity with the sole purpose of ensuring the financial stability and ongoing operation of the Auckland City Mission.

The Foundation was set up in 2004 and manages two large donations which have grown to $9.6m-worth of investments, according to filings with the Charities Commission.

In each of the past two years the Foundation paid a distribution to the Mission of $350,000, which amounts to 3.6 per cent of the amount it has invested.

The Foundation's other significant outgoings for the year were fund-management and accountancy fees totalling $97,000.

Foundation board member Chris Blincoe said the focus of the trustees was to ensure the fund remained intact to ensure future payments to the Mission.

"We take a long term view. We are conscious of the needs but we want the fund to be there in 10 years' time and in 20 years' time."

Chris Farrelly, CEO of Auckland City Mission. Photo / Michael Craig

The Mission, which has as its purpose helping people in desperate need by providing services and advocacy, has assets of almost $22m.

Of this, $5.6m is in land and buildings and $9.7m is represented by the Mission's interest in the Foundation.

The remaining $6m is intended for redevelopment of the Mission's Hobson St site which is intended to include some social housing apartments.

"The Mission facilities are substandard and not fit for purpose," Farrelly said.

"It is the original 1852 Prince of Wales Hotel, and in that we are trying every morning and evening to give meals in a dignified way to 100 people in an environment that doesn't lend itself to that.

"Plus we have emergency crisis people coming in that require assessment in privacy in rooms we don't have. We have on the same site one of only two drug and alcohol detox facilities left in Auckland.

"The whole facility is not fit for purpose . . . it doesn't provide us the ability to care for this huge number of people we have got."

Farrelly said work could begin next year which would mean the Mission having to find alternative premises during construction.

The estimated $70m would need to be raised from supporters, the wider public, corporates, a mortgage and the Government. The Mission is aiming to provide $10m of its own funds.

The Mission employs 51 people full time and 33 people part time.

The highest three paid employees - described in financial statements as "key management" together received $427,000. This compares to the previous year when two employees together received $393,000.

The Charities Aid Foundation's World Giving Index measures the average percentage of people in each country who donate money, volunteer or help a stranger. Of 140 countries surveyed last year New Zealand ranked fourth. Myanmar was first followed by the United States and Australia.

In 2010 New Zealand and Australia shared first place.