This week, Sir Ian has been exhorting well-off older New Zealanders to give some or all their superannuation via Share My Super to charities targeting child poverty.
New Zealanders are generous towards all sorts of causes, whether giving a lot or giving a little. This country has one of the highest numbers of registered charities per capita and New Zealanders are some of the most generous donors in the world.
However, we do not have a large philanthropic tradition, unlike in the United States.
We expect — and rightly so — that the state should provide the main welfare backstop. Regardless of what Share My Super and other charities do to combat child poverty, the government will always play the largest role.
Realistically, whatever the ideal, charities have an essential place. Church and community groups help to plug the gaps that exist and always will.
They might still be in well-paid jobs or have investments and houses worth millions of dollars. They can afford to be generous to Share My Super and other charities.
Share My Super was set up in 2019 by former South Auckland social worker Liz Greive. She is from the family associated with Barkers Men’s Clothing.
Greive, in late 2023, gave $10 million in the hope of encouraging donations to grow into tens of millions of dollars. Her invested gift generates the funds to pay operating costs in perpetuity ensuring every cent donated goes to the 11 specified charities.
Administration costs sometimes account for substantial portions of charity donations.
Greive was named a Forbes Asia "Hero of Philanthropy" last year.
One of Save My Super’s advantages is the simplicity of donating via its website. Hopefully, giving will supplement and in no way replace giving to other charities.
Auckland University Retirement Policy and Research Centre co-founder Michael Littlewood said such schemes "sound like nice things done by nice people" but did not address the key structural issues surrounding poverty.
Littlewood is correct about structural issues. That, however, is not the point of the charities or, for example, food banks. They are dealing with the immediate practicalities of our imperfect world.
Ambulances are still needed at the bottom of cliffs.
The charities, which include Child Poverty Action Group, Women’s Regus, KidsCan, Wellington City Mission, Te Pā and First Foundation welcome any support.
Further, Child Poverty Action Group looks at the bigger picture and the root causes of poverty. It collates evidence about the causes and impact of poverty on children and advocates for their needs to be prioritised in government budgets and policies.
Littlewood has come to believe that pensions should be means-tested. The cost at present is about $18 billion a year. This will rise as the population ages. Its long-term sustainability is frequently questioned.
However, the scheme’s universality makes it simple to administer. Means testing will always create complications, anomalies and avoidance.
Universality also encourages older people to continue working, thus paying more tax and being in higher tax brackets.
New Zealanders aged over 65 are employed at a higher rate than older Australians. The magnitude of the over-65 workforce will become increasingly significant as the proportion of younger people paying taxes falls.
Share My Super received $618,082 in public donations in the financial year to the end of last March. Its grants to date are worth about $2.4m.
One in seven children live in households experiencing material hardship, one of the child poverty measures, according to Stats NZ figures released yesterday.
Share My Super chief executive (and only employee) Rachel Scott said the publicity this week as the campaign got under way had prompted a flurry of new donations. But there was still a long way to go to raise enough money to make a real difference.
