Poor regulation in €5bn charity sector, report finds

Ireland’s €5bn not-for-profit sector must be regulated, a report has urged.

The Fundraising Performance report by fundraising specialists 2into3 and sponsored by specialist charity insurer Ecclesiastical shows that organisations employ more than 100,000 people, with salaries representing 46% of spending.

The report, based on an analysis of accounts from 1,000 charities, shows funds continue to rise despite the recession, with about €4.9bn raised in 2011.

Director of 2into3, Neil Pope, said the sector was poorly regulated.

In particular, variations were found in the amount of information available about how funds were raised and for what purpose.

Mr Pope said Justice Minister Alan Shatter should enforce the 2009 Charities Act that would support the growth of the sector and provide a better infrastructure to manage both fundraising and spending.

“No other sector of such scale operates without governance and regulations.”

“Given the sensitivity of the projects and importance of fundraising to so many sectors it is vital that the Government acts now to bring further peace of mind to donors and recipients alike by enforcing the legislation,” he said.

While the €4.9bn was up 3.7% on the previous year, the scale of organisations in the sector and their success varied. Just under 40% of organisations had an income of less than €100,000 and almost 80% had an income of less than €500,000. Just one in eight (12.5%) had an income in excess of €1m.