Public donations to Goal slump 43%

Public donations to Irish aid agency Goal slumped 43% last year as its income tumbled by €12m.

This year, the agency has faced an internal dispute that resulted in founder and chief executive John O’Shea stepping down in August.

The figures for 2011 show income from donations and fundraising reduced from €13.7m to €8.1m. Overall, income decreased by 17%, from €73.4m to €61m.

Two employees last year earned between €100,000 and €115,000, with two others earning between €85,001 and €100,000.

The directors’ report attached to the accounts says the significant drop in income from fundraising events is “attributable more to the high value of donations received in 2010 for Goal’s Haiti earthquake appeal rather than to a marked fall-off in donations in 2011”.

Mr O’Shea’s resignation is briefly referred to in the accounts under the heading “events since year-end”. Costs associated with his departure are expected to feature in the 2012 accounts.

In July, Mr O’Shea — who established the charity in 1977 — went to the High Court to prevent the board from removing him as chief executive. After three weeks of talks, Mr O’Shea agreed to step down after a settlement was reached.

A draft report by tax consultants for the charity warned earlier this year that Goal faces potential tax and social security exposure in relation to UK-based employees working in Ireland.

However, the 2011 annual financial statement, signed off on Sept 27 last, makes no reference to the KPMG report and does not record any current or future liabilities that Goal may face.

The agency stated in August that it was satisfied it was fully tax-compliant.

Its auditors Deloitte said that “proper books of account have been kept by the company”.

The figures for last year show that while the agency’s income from donations and fundraising decreased by €5.6m, its spend on fundraising rose 36%, from €960,475 to €1.3m.

However, Goal’s income from its largest base — grant income from governments, trusts, and other grant-making institutions — dropped off by a much lower 2%, from €49.9m to €48.9m.

The agency’s largest donors were the Government’s Irish Aid, which contributed €16.3m, and the US Agency for International Development, which contributed €14.1m.

A surplus last year of €373,669 compared to a surplus of €4.9m in 2010. The agency remains in robust financial health, with accumulated funds at the end of 2011 totalling €37m. Its cash balance at the end of December was €29.1m.

Staff costs for head office staff in Ireland, the UK, and the US increased by 11%, from €6.5m to €7.2m, as the numbers employed went from 53 to 60. Staff costs for “Goalies” employed overseas increased by 12%, from €3.4m to €3.8m.

Last year, Goal’s spend on overseas relief and development fell 12%, from €67m to €59m. The spend accounted for 97% of Goal’s total expenditure.

Goal last night did not respond to a request for comment on the accounts.