Red Cross NZ has confirmed the launch of its partnership grant application process, saying it will offer communities the chance to give direct input into how they want the New Zealand Disaster Fund to be used.

This funding will come directly from the NZ Disaster Relief Fund, which currently sits at $18 million, with $2m spent across Aotearoa.

Red Cross highlighted the grant application process is now up and running, and it expects to spend most of the fund within six months.

Funding would come in the form of two types of grants.

The Community Support Grant is for the costs being incurred by those supporting the basic needs of those impacted, for example, providing people with temporary accommodation, food or water, or supporting community clean-up efforts. These applications can be made for between $5,000 and $50,000.

The Community Enable Grant is for the costs being incurred by those providing financial support, resources or assets to enable communities to recover more quickly from the effects of the cyclone.

This includes supporting community-wide temporary access to water, telecommunications equipment such as satellite phones, and other community-wide recovery or connection activities. These applications can be made for $50,000 and over.

Both grants are not available to individuals or households and are available for activations happening within 12 months of receiving the grant.

Red Cross have continued to state that there would not a specific set percentage of funds that would be allocated to any one activity or location across Aotearoa, and that future funding would be “allocated based on where the need is greatest and where it will make the most difference”.

Recently, there has also been speculation that the Red Cross NZ branch was in debt, and that money from the Disaster Relief Fund was contributing to the business aspects and operating costs of the organisation.

Red Cross NZ confirmed in a statement that as of 2023, the NZ organisation and its operations were not in debt and its financial position had no impact on the fund, as it was classed as a special and separate appeal.

“The financial position of New Zealand Red Cross in no way has shaped any decisions regarding the New Zealand Disaster Fund. All money generously donated to the New Zealand Disaster Fund is for the express purpose of current and future disaster response and recovery,” said Sarah Stuart-Black, secretary general for New Zealand Red Cross.

“The New Zealand Disaster Fund is classified as a special appeal, meaning it does not form part of New Zealand Red Cross general funds and is accordingly segregated.

“[Our] Special Appeal Policy specifically prevents funds raised for such an appeal to be used for other purposes.”

Stuart-Black also said Red Cross does not take a percentage or cut from donations for the administration of the New Zealand Disaster Fund, and these costs will be borne by the New Zealand Red Cross and will not be deducted from the New Zealand Disaster Fund.

“As a charity, we rely on the generosity of donors. When an event such as Cyclone Gabrielle happens, Red Cross continues to be there, but we do not profit from such events – historically, we have incurred administrative costs. Fortunately, we are supported by the New Zealand Red Cross Foundation to mitigate any losses, and the foundation remains financially stable.”

When talking about the speed of the allocation of funds, New Zealand Red Cross general manager Shane Chisholm told Newsroom in a report last week that a range of factors contributed to the rollout of funding and aid.

“What we’re finding is within each community, there are a different sets of needs, [which affects] to a certain degree the time taken to release the funds, because what we have learned in the past is, the best way to engage and support a community to recover is to allow that community to lead,” he said.

“People may see that as taking longer than ideal, but it’s really important that we take the time to ensure we are making the most of the resources that we have.”

A $1.1m contribution to the Wairoa District Council-led Liveable Homes Fund was announced last week, and the Red Cross said it has continued to support the region throughout the response and recovery process and would continue to update and inform the public.