New Zealand's $60 billion not-for-profit (NFP) sector is facing concerns over the large number of organisations working in the area, a new report revealed. 

There are currently over 27,000 NFP organisations in the country, one for every 170 Kiwis. The Cause Report, by investment firm JBWere, is the first major in-depth analysis of the country's NFP sector.

JBWere's New Zealand head Craig Patrick said although the number of NFPs in New Zealand is substantially lower than Australia and the United States, the large numbers are "creating a burden on their supporters and volunteers.

The charity Cure Kids says it's working hard not to duplicate services and wants to make better use of its volunteers as new research shows there are more than 27,000 not-for-profit organisations in NZ - roughly two to three new charities are being created every day.

"Kiwis care very much about causes, and want to start and be involved in good works ... Since 2010, there have been 2.5 charities established each business day in New Zealand.

"Looking ahead, we think that more collaboration and mergers could be part of the solution," Patrick said.

Patrick said funding growth for the sector has been reasonably strong, almost 6 per cent annually since 2004.

"This growth has often been at the expense of margins which are squeezed. This has impacted on the ability for organisations to fund innovation and think more creatively. Where, for example, are the Googles in the NFP sector?"

Looking ahead, Patrick said JBWere saw a trend of new sources of funding emerging.

"Impact investments are becoming more popular where a project seeks to deliver both a financial profit as well as a social return."

New sources of funding were rewarding success, rather than just reimbursing an organisation's costs, and new methods of corporate support through partnerships emerged that offered benefits for both the company and the NFP organisation.

Cure Kids CEO Frances Benge welcomed the findings in the report.

"The Cause Report initiates an important discussion on a vital sector in the wellbeing of our society.

"The New Zealand picture emphases this need further with the reliance on philanthropy rather than government funding driving the importance of mutual interest collaborations, astute management of expenses and a greater appreciation of the value of volunteers," Benge said.

The report was based on data from Statistics New Zealand and data collected and published by Charities Services from charities' annual returns. It provides an overview of New Zealand's NFP sector including its asset base, income and expenditure, philanthropy and innovation, the makeup of its workforce and volunteers, and how the sector compares internationally.

This article was originally sourced from Stuff.co.nz.