Charities are fundamentally dependent on donations from the public but their ability to raise funds in recent years has been affected by challenges besetting the sector. How has the industry responded to that challenge? And what role has the Charities Regulator played in ensuring high governance standards in the sector?
The cost-of-living crisis remains a significant concern for charities, says Jesse Wiesblatt, acting director of fundraising and marketing with Focus Ireland. “While recent data from nfpResearch’s spring 2024 report indicates that donors feel more financially secure than last year, many are increasingly selective about their contributions.
“As individuals prioritise their personal financial needs amid rising costs, giving patterns have shifted, with more donors expecting to reduce their charitable donations compared to previous years.”
We are coming into a time of year when many are reminded of the essential need for a safe and secure home, says Wiesblatt. “Ten years ago in Ireland, there were 750 children experiencing homelessness, now that number is over 4,400.
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“Homelessness is an outcome of policies which our Government can control. Unfortunately, the Government is not yet putting in place the right policies to deal with this issue.”
More recently, it’s the cost of living that has driven families from their homes, with house prices out of reach, rents rocketing, and landlords leaving the market. “That has just added pressure to the limited housing stock available for those in emergencies making it harder to find stable accommodation.
“The housing crisis and the cost of living crisis are closely intertwined with the challenge of homelessness, and some of the same issues are directly impacting donors.”
Choosing a charity to support can be difficult. There are so many worthy organisations working in Ireland today, covering a range of important causes right across every county, says Seán Bergin, national fundraising manager, Barnardos. “Which cause is greater than the next? How do people decide whom to give their hard-earned spare cash to and which to forego? There are so many demands on people’s attention, at Barnardos, we genuinely understand that it’s not easy.
“The impact of [the] cost of living is still influencing fundraising as people must make harder choices with the money they do have.”
The Charities Regulator maintain a public register of charitable organisations operating in Ireland and ensure their compliance with the Charities Acts, Wiesblatt says. “Within this process, all charities are legally required to file annual reports with the Charities Regulator within ten months of the financial year-end, and those who don’t will be investigated.
“The rules, particularly around financial matters are stringent and enforced. The Charities Regulator also publishes both the Guidelines for Charitable Organisations on Fundraising from the Public for ethical fundraising and the Charities Governance Code which outlines the six key principles of good governance.”
It is so important for the public to trust the charities they support and having a regulator available to monitor and check for quality is key, says Bergin. “We also make sure we are fully transparent with the public when it comes to where we spend donations and public funds — all our annual reports from recent years are available on our website for anyone to see.”
Trust is critical for charities, yet recent issues within certain organisations in the sector have fostered caution among the public, agrees Wiesblatt. “Issues like lack of transparency have led to heightened scrutiny, with current data from nfpResearch’s spring 2024 report revealing that only 58 per cent of the public trust charities in general to a significant degree.”
The sector’s future will likely require sustained adaptation, as charities work to diversify their income streams, not becoming too reliant on any one source, with increasing opportunities in the digital space and innovative outreach, says Wiesblatt. “Some of the services that Focus Ireland provides are delivered on behalf of the state or local authorities. We believe that the full costs of such services should be funded by the State, leaving the income from donors to be directed at innovative solutions and to help those whose complex needs result in them falling through the gaps in mainstream services.”