Case Study

YHA New Zealand

YHA New Zealand – how values defined the end of the journey

The gift of the process was to truly see what it meant to work in line with your values and people who share your values. You can still achieve astonishing things.

MAUREEN McCLOY – YHA NEW ZEALAND, BOARD CHAIR

The call no one wants to make

It’s the call no charity’s Board wants to make - to close your doors for good. When that organisation has existed for 92 years and played an integral part of thousands of people’s experience of New Zealand, it is even harder.

But for the Board of YHA New Zealand, that worst-case scenario became a legacy of its own.

By keeping their founding mission front and centre, and operating under the guidance of their organisational values, a painful experience instead closed a remarkable journey with integrity and the spirit of generosity with which it began.

YHA in New Zealand

YHA New Zealand had its roots in Banks Peninsula, near Christchurch. Drawing inspiration from a German model, in 1932 Cora Wilding sought to create places where walkers, hikers and trampers could find a safe bed and a meal. Cora’s vision became a network of properties that evolved into YHA New Zealand (YHA), offering opportunities for young people from across the world to explore and appreciate nature and community within New Zealand.

At its peak YHA operated over 40 hostels across the country and, as a membership-based incorporated society, had a strong membership of 28,000 members; but by 2021, things had changed. By then, Covid-19 had led to global restrictions on travel, creating a problem for an organisation with multiple properties targeted for the use of travellers.

Insurmountable Challenges

YHA’s buildings remained open, supporting travellers who couldn’t go home and later, domestic tourism. But it wasn’t enough; the hostels’ operating costs kept ticking over and the drain on working capital took its toll.

At the end of 2021, the Board decided to close operations and sell its existing properties to clear its debts. Some capital then remained, and so did a core question – ‘Can we somehow still follow our original purpose?’

The Board considered nine possibilities, including merger or purchasing alternative properties, but ultimately, closure was the only viable way forward. Maureen McCloy had joined the Board in early 2021, having previously worked for YHA, and was now Chair. “It was a horrible feeling” says Maureen. “Arthur Dudley Dobson was the first Chair, and the last one was myself.”

Unknown Territory

“We all wanted to still leave a legacy - to leave a mark somehow. But this was unknown territory and even some of our advisors hadn't been through this before. The constitution stated we should distribute any remaining capital to similar charities and, as an Incorporated Society, our members had to agree to any proposal.”

The questions of which charities were aligned to YHA’s purpose and were appropriate to receive their funds were understandably not questions the Board was equipped answer. With extensive and intimate knowledge of the NZ charitable sector, TFA was.

Having previously met Sarah, Maureen had been impressed by her thinking and approach. “Sarah spoke a lot of sense and her values aligned with those of YHA. She had a deep understanding of the charitable sector and fundraising needs, and she understood the problem. She slotted right into the team.”

TFA came onboard to assist in the uncharted process of ensuring YHA’s charitable purpose continued to live on beyond the charity itself. TFA provided a wide range of bespoke advice and support for the distribution of YHA’s funds. This included governance support and advisory work with the Board and staff; attending Board, membership meetings, and Special Committee meetings; providing advice on member and public communications; establishing criteria for funds disbursement; developing and distributing an RFP for prospective beneficiaries; liaising with charities; and undertaking administrative services as required.

Identifying Aligned Causes

At the core of this work was identifying charities who might help continue YHA’s legacy by aligning with its purpose to “promote the education, health and well-being of people of all nations and especially of young people,” particularly in relation to the environment and the culture of NZ and other countries.

“We were looking for one or more charities who served to educate New Zealanders and visitors to New Zealand about protecting our native flora and fauna, and the natural historic features of New Zealand” says Maureen. “Because we believe that being in the natural environment should positively contribute to overall wellbeing, ideally at least one of the shortlisted groups would also provide accessible accommodation.”

“Sarah came up with the process of how this could go forward, one which we knew would best align with our values and purpose. That included how it could have meaning for YHA members, who would ultimately vote on how the funds were dispersed” Maureen says.

TFA undertook the complex task of sifting through the charity register to collate a list of charities that aligned with YHA’s purpose and values; YHA also asked their members for ideas. From over 1,800 initial prospects, TFA whittled the list down to 36.

TFA developed an RFP process for prospective applicants, and a short list of six were invited to present a proposal. “Sarah helped those organisations to prepare themselves, to understand what would be a reasonable ask and how best to pitch and present their case, showing how they would use any funds in line with YHA's driving purpose” says Maureen. The Fundraising Agency also handled distribution of submission material to YHA members to enable an informed vote, and ultimately four charities were awarded funds.

The final motion to dissolve YHA New Zealand in November 2024 was a difficult and emotional moment. “At the final meeting Sarah spoke to the members with real feeling, and she was very supportive to me personally. She sat in the room with me and demonstrated a lot of care towards us as Board and staff members, as she recognised the unique pressure that we were under. Our values had attracted the right people and influenced how we operated through this process, and Sarah shared that commitment.”

The final distributions of YHA’s funds were made in May 2025. Living Springs received $1million dollars; Banks Peninsula Conservation Trust approximately $1.1 million; Untouched World Foundation approximately $600,000, and Tarapuruhi Bushy Park $100,000. Each charity carries part of YHA’s vision and values regarding education access to the environment, and appreciation of New Zealand’s unique fauna, flora and culture.

A Different Legacy

A commitment to purpose and values had guided YHA New Zealand for 92 years, and attracted people who shared in those beliefs, through to its end. “To leave with debts would not have upheld our integrity or respect for our mission, but our values gave us something to hang on to as we traversed this difficult process” says Maureen.

“That is a great lesson for others in a similar situation. We had an overt commitment to our values to guide us, and that drew the right people to us, which made all the difference. Everyone lined up to achieve a very good outcome. Yes, it was stressful - the process, the letting go of the legacy. But we felt very proud of the result – these funds made a transformational difference to other charities.”

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