Shedding light on the pay of charity chiefs

WITH a reputation for generosity that puts us ahead of many of our international counterparts, the Irish public is not shy when it comes to supporting good causes.

Our record for supporting overseas development is well recognised — a report published in July 2010 by Global Humanitarian Assistance ranked Ireland asthe fourth most generous in terms of donations per citizen.

But overseas crises are not the only reason we dig deep — here at home, charities supporting the disabled, the homeless, the sick, the young and vulnerable, the impoverished — all benefit from an estimated €500 million donated annually to Irish charities.

Those who donate do so in good faith and in the expectation that their money will go towards those the charity purports to support. This is at the heart of the statement of guiding principles for fundraising, a guide devised by the charity industry to offer donors and potential donors clarity on what they may expect from the charity, its representatives (whether voluntary or paid) and its management.

The statement is the best we have while we await the commencement of much of the 2009 Charities Act and while we wait for the Government, and specifically the Department of Justice, to take the next step and set out in detail the reporting requirements for charities in their annual activity reports and annual returns.

As it stands, most charities subscribe to the charity statement of recommended practice (SORP), which provides recommendations on how accounting standards should be applied in the context of charities. However, while compliance with the SORP is mandatory in Britain, here, the decision is voluntary and down to each individual charity.

Sheila Nordon, the executive director of the Irish Charities Trust Research, a membership organisation of charities focused on creating a policy climate in which philanthropy can thrive, says it is considered good practice for charities to indicate overall salaries in their annual reports, as well as the number of staff earning over a certain threshold, but such disclosure is not mandatory. She believes donors have the right to know where their money is going and that if they make a reasonable query, they should be answered.

The Irish Examiner made what it considered a number of reasonable queries in relation to the kind of packages offered to the chiefs executive of some of our leading charities.

This included details of salary, expenses and bonuses paid over the past two years, as well as pension entitlements and the number of euro per €1,000 of charity income that goes towards the chief executive’s salary.

Not all were happy to divulge the details.

Out of 24 surveyed, six refused to release the information, mainly on the basis that they do not disclose individual remuneration details. Unicef Ireland declined on the basis of being “bound by confidentiality”.

The remainder had no objection to transparency and we set out our findings below.

UNICEF IRELAND

Refused to divulge details as it is “bound by confidentiality as regards the remuneration of its recent executive director”. This refers to Melanie Verwoerd, sacked in July amid claims the board felt media interest in her relationship with broadcaster Gerry Ryan, who died in 2010, was damaging Unicef. Asked what package will be on offer to the new executive director, a spokesperson said the role “is remunerated at comparable levels to other international charities based in Ireland”.

TRÓCAIRE

Chief executive: Justin Kilcullen

Salary 2010: €146,191.

Salary 2011: €133,605.

Expenses 2010 & 2011: Vouched out-of-pocket only. No figures supplied.

Bonus payments: None.

Pension entitlements: Based on 1/60th of final salary for each year of pensionable service. Maximum of 40/60ths.

Company car: None.

Charity income 2010: €63m.

No of euro paid to chief executive per €1,000 of charity income: €2.32.

ST VINCENT DE PAUL

Services for those experiencing poverty and social exclusion.

National Director: Kieran Murphy

Salary 2010 & 2011: N/A. Salary range 2009 = €105,000 to €110,000.

Expenses 2010 and 2011: Vouched out-of-pocket only. No figures supplied.

Bonus payments: None.

Pension entitlements: Defined contribution scheme to which the society contributes a max of 5% of salary.

Company car: None.

Charity income 2010: €73.9m.

No of euro paid to chief executive per €1,000 of charity income: Approx €1.45.

SPECIAL OLYMPICS IRELAND

Sports organisation for people with intellectual disability.

Chief executive: Matt English

A spokesperson said: “Special Olympics Ireland has chosen not to get involved with this article.” SIMON COMMUNITIES OF IRELAND

Charity dedicated to ending homelessness.

Acting chief executive: Patrick Quinn

Refused to divulge details of chief executive’s package on basis that it doesn’t reveal details of individual remunerations.

OXFAM IRELAND

International humanitarian agency.

Chief Executive: Jim Clarken, also executive director of Oxfam International and non-paid chair of Dóchas, the umbrella organisation for the development sector.

Salary 2010: €90,000 is set by Oxfam Ireland’s board and is not linked to organisational income.

Salary 2011: No change.

Expenses 2010/2011: Vouched travel expenses. No figures supplied.

Bonus payments: None.

Pension entitlements: Defined contribution pension scheme.

Company car: None.

Charity income 2010: €15.5m.

No of euro paid to chief executive per €1,000 of charity income: €5.80.

JACK AND JILL FOUNDATION

Provides care and support for children with severe neurological development issues, as well as offering some respite to families.

Chief executive: Jonathan Irwin

Salary 2010: €88,200.

Salary 2011: No change.

Expenses 2010: €17,494, of which €4,048 relates to mileage using own car.

Expenses 2011: €12,638 (up to August) of which €3,818 relates to mileage.

All expenses are vouched and paid by Visa

Bonus payments: None.

Pension entitlements: None.

Company car: None.

Charity income 2010: €2.4m.

No of euro paid to chief executive per €1,000 of charity income: €0.03 (2010).

ISPCC

(Irish Society for the Prevention of Cruelty to Children)

Provides support services for and advocates on behalf of children and young adults

Chief executive: Ashley Balbirnie

A spokesperson said the board made a decision not to release the information requested by the Irish Examiner other than to say that the chief executive has “a flat salary arrangement and there is no company car provided or any bonus structure included” and that the ISPCC fundraises in excess of 90% of its funding.

IRISH WHEELCHAIR ASSOCIATION

Charity dedicated to improving the lives of people with physical disabilities.

Chief executive: Kathleen McLoughlin

Salary 2010/2011: €146,191. Ms McLoughlin is on secondment from the civil service where her substantive grade is principal officer. During her employment with the IWA, it has been contractually agreed that she will be paid the salary of assistant secretary. She is paid at the maximum point of this scale (€127,796 to €146,191)

Expenses 2010: €219.69

Expenses 2011: None up to August.

Bonus payments: None.

Pension entitlements: Ms McLoughlin retains her pension entitlement at principal officer level. Additionally, she has access to the IWA’s defined contribution scheme to provide her with pension benefit on the additional salary up to assistant secretary level.

Company car: None.

Charity income 2010: €53.7m.

No of euro paid to chief executive per €1,000 of charity income: €2.72.

IRISH HOSPICE FOUNDATION

Supports the development of hospice and palliative care.

Chief executive: Sharon Foley (appointed May 2011)

Salary 2010: €101,350 (linked to civil service principal officer grade).

Salary 2011: No change.

Expenses 2010: €3,091.29 (vouched).

Expenses 2011: €1,134.16 to end of August (vouched).

Bonus payments: €17,800 in 2010. Paid only if certain pre-established targets are reached.

Pension entitlements: Chief executive makes own contribution plus 10% contribution by charity.

Company car: None.

Charity income 2010: €5.35m.

Amount paid to chief executive per €1,000 of charity income: €24.19=.

IRISH GUIDE DOGS FOR THE BLIND

Provides services to people who are blind or vision impaired and to the families of children with autism.

Chief executive: Padraig Mallon (and acts as company secretary and HR manager).

Salary 2010/2011: €85,000 to €100,000.

Expenses 2010/2011: Vouched. No figures supplied.

Bonus payments: None.

Pension entitlements: IGDB operates a matched pension scheme. Employees make contributions of 5%.

Company car: None.

Charity income 2010: €4.2m.

No of euro paid to chief executive per €1,000 of charity income: 0.2% of total income.

IRISH CANCER SOCIETY

National cancer care charity focused on achieving world-class cancer care.

Chief executive: John McCormack.

Mr McCormack also sits on a number of boards in his capacity as chief executive of the Irish Cancer Society, for which he does not receive any director’s fees.

Salary 2010: €145,000.

Salary 2011: No change since 2009.

Expenses 2010: €6,600 (vouched).

Expenses 2011: €1,200 up to August.

Expenses costs include the cost of a company car.

Bonus payments: None.

Pension entitlements: All staff are members of the ICS pension scheme.

Company car: Mazda 3 2008.

Charity income 2010: €17.5m.

No of euro paid to chief executive per €1,000 of charity income: €8.28.

GORTA

Overseas development agency.

Chief executive: Brian Hanratty

Salary 2010/2011: Less than €100,000. Pay freeze for all staff for the last three years.

Expenses 2010/2011: N/A.

Bonus payments: None.

Pension entitlements: Gorta does not comment on individual arrangements.

Company car: None.

Charity income: €6.9m.

No. of euros paid to chief executive per €1,000 of charity income: N/A. However ratio of income to chief’s salary is greater than 70:1.

GOAL

International humanitarian agency

Chief executive: John O’Shea

Salary 2010: N/A.

Salary 2011: No member of GOAL earns in excess of €100,000 per annum.

Expenses 2010/2011: Chief executive does not have an expense account.

Bonus payments: None.

Pension entitlements: Defined contribution scheme.

Company car: 2007 Nissan Tiida purchased a year ago for €7,000. It is owned by GOAL.

Charity income 2010: €72.4m.

No of euro paid to chief executive per €1,000 of charity income: N/A. FOCUS IRELAND

Works to advance rights of the homeless.

Chief executive: Joyce Loughnan

Salary 2010/2011: €125,000 .

Expenses 2010: €3,245 (travel).

Expenses 2011: €2,404 up to August (travel). All staff are covered by the same expense rules. Expenses for work-related travel are reimbursed in accordance with the Revenue Commissioners mileage rates.

Bonus payments: None.

Pension entitlements: All staff are members of the defined contribution scheme. Focus Ireland makes a standard employers contribution to this scheme of 7% of pensionable salary (ie, 7% of salary minus 1.5 times the state pension rate).

Company car: None.

Charity income 2010: €18.14m.

No of euro paid to chief executive per €1,000 of charity income: €6.89. For every euro Focus Ireland receives, 91c is spent directly on services.

ENABLE IRELAND

Provides services to children and adults with disabilities.

Chief executive: Fionnuala O’Donovan

Salary 2011: €156,340. Waived a pay increase of 2.5% in 2008.

Took a further cut in January 2010 to bring her salary into line with the public service cut of 12%.

Expenses 2010/2011: Travel only and based on recorded mileage paid at public sector mileage rates.

Bonus payments: Has not availed of the 10% bonus available to all senior public sector grades.

Pension entitlements: Contributory defined benefit pension scheme.

Company car: None.

Charity income 2010: €50.4m.

No of euro paid to chief executive per €1,000 of charity income: 0.3% of total income.

COPE FOUNDATION

Provides services for 1,800 children and adults with intellectual disability and autism.

Chief executive: Colette Kelleher (appointed April 2011).

Salary 2011: €130,000.

Expenses 2011: €260 (vouched).

Bonus payments: None.

Pension entitlements: Nominated Health Agency Superannuation Scheme. This is a contributory pension scheme and provides the following benefits: 1/80th of salary per year of service (max 40 years)

Lump sum: 3/80ths of salary per year of service (max 40 years).

Company car: None.

Charity Income 2010: €63.9m.

No of euro paid to chief executive per €1,000 of income: €1.96.

CONCERN

International humanitarian agency

Chief executive: Tom Arnold

Salary 2010: €130,000 (based on assistant secretary grade in the public service).

Salary 2011: No change.

Expenses 2010/ 2011: Vouched. No figures supplied. It is Concern policy to fly economy class and use public transport where available.

Bonus payments: None.

Pension entitlements: The chief executive is on secondment from the Department of Agriculture where he was assistant secretary general.

Concern maintains his pension rights under that scheme.

Company car: None.

Charity income 2010: €167m.

No of euro paid to chief executive per €1,000 of charity income: €0.78.

BROTHERS OF CHARITY SERVICES IRELAND

Provides services and supports to people with intellectual disability and autism and their families.

National chief executive: Winifred O’Hanrahan

Salary 2010/2011: The HSE scale applicable to the national chief executive of the Brothers of Charity is a four-point scale from €19,901 to €37,927.

Expenses 2010/2011: No bonus, unvouched expenses or overtime payments are attached to the post. All travel and subsistence are aligned to rates approved by the Department of Health.

Bonus payments: See above.

Pension entitlements: Nominated Health Agency Superannuation Scheme. This is a contributory pension scheme and provides the following benefits: 1/80th of salary per year of service (max 40 years).

Lump sum: 3/80ths of salary per year of service (max 40 years).

Basic salary is subject to the public sector pension deduction.

Company car: None.

Total budget 2010: €187,618,979.

In 2010 the national chief executive’s salary represented 0.07% of the total annual budget.

BÓTHAR

Overseas aid agency that specialises in livestock production and supports support related training and development.

Chief executive: David Moloney.

Declined to release remuneration package details on the basis that they “do not individualise details of remuneration packages to any of the staff in our accounts”.

Charity income for year ended June 30, 2010: €7.7m.

BARNARDOS

Provides services to children and families in need.

Chief executive: Fergus Finlay

Salary 2010: €113,315 (equivalent to 5th point on salary scale of HSE assistant national director). However, net cost to Barnardos is €88,000 because the chief executive contributes a minimum of €25,000 a year from fees earned through board memberships, speaking engagements and writing and broadcasting.

Salary 2011: No change

Expenses 2010: €7,900 on outgoings such as accommodation and cost of travel (including petrol) and contribution towards car maintenance (vouched — uses his own car). Mileage for 2010 was 25,000.

Expenses 2011: N/A.

Bonus payments: None.

Pension entitlements: Chief executive contributes a portion of his salary to a defined contribution scheme.

Company car: None.

Charity income 2010: €24m.

No of euro paid to chief executive per €1,000 of charity income: €4.70.

ARTHRITIS IRELAND

Chief executive: John Church

Refused to divulge any details.

A spokesperson said: “We don’t disclose remuneration details of any staff.”

ALZHEIMER SOCIETY OF IRELAND

Provides services to people with all forms of dementia, to their families and to their carers.

Chief executive: Maurice O’Connell

Salary 2010: €121,200.

Salary 2011: No change.

Expenses 2010: €1,877.

Expenses 2011: None.

Bonus payments: Not applicable.

Pension entitlements: Defined contribution — 5% contributed by the society.

Company car: A Honda until December 2011 when arrangement ends as a cost saving exercise.

Charity income 2010: €17.8 million

No of euro paid to chief executive per €1,000 of the charity’s income: €6.80.

NATIONAL COUNCIL FOR THE BLIND OF IRELAND

Provides services for people with sight loss.

Chief executive: Des Kenny

Salary 2010: €127,184

Salary 2011: €125,326

Expenses 2010: €1,120

Expenses 2011: None. Mr Kenny does not drive, does not receive a payment in lieu of a car allowance and must vouch for travel expenses.

Bonus payments: None in 2010 or 2011.

Pension entitlements: Defined benefit. Own contribution of 5%. Company contribution N/A.

Company car: None.

Charity income 2010: €15.2m.

No of euro paid to chief executive per €1,000 of charity income: €8.26.



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