Paying the Price of the Failure to Retain Legitimacy in a National Charity: the CORSO Story

Abstract

CORSO was a New Zealand organisation established in 1944, dedicated to the relief of poverty overseas. It was the coordinating agency for many different national bodies; all of whom shared the poverty relief vision and worked to ensure New Zealand’s contribution was under one “umbrella”. Its primary vision for the relief of poverty attracted 50 member organisations by 1967.

In examining CORSO’s decline from 1970, until its ‘functional death’ in 1991, the causes of this decline provide a valuable illustration of the importance of political independence and integrity for charitable organisations’ survival.

The data for this study is derived from primary and secondary sources including newspaper articles, annual reports, correspondence and opinion surveys. This research also analyses accounting data, evidencing a correlation of robust or deficient accounting processes respectively with economic excellent or poor health. To this extent the accounting data provides a ‘biomarker’ of organisational health.

Key to CORSO’s demise was a change in strategic direction brokered by governing members which resulted in a philosophical shift unsupported by many of its core orthodox member bodies, with ‘fatal’ consequences.