One in four charities fear they cannot carry on in an  ‘overstretched’ sector

Only a quarter of charities surveyed receive multi-annual funding, while most of the rest are reliant on 'short-term arrangements that undermine long-term planning'. File picture

Ireland’s charity sector is “overstretched”, with one in four organisations unsure if they can afford to carry on, according to a survey by the sector’s national association.

This is despite charities employing more than 281,250 people, and contributing a claimed €32bn annually to the economy.

The survey, carried out in February and March by The Wheel, points to potential “systemic funding issues” in between 1,000 and 3,000 of the country’s 11,500 registered charities.

Only a quarter of charities surveyed receive multi-annual funding, while most of the rest are reliant on “short-term arrangements that undermine long-term planning”. 

The Wheel said other issues include staffing levels, which pose a “critical challenge” to organisations, with about one third unable to either recruit or retain staff.

The survey found this was “largely due to uncompetitive pay” in the sector.

It also noted while some organisations have received additional funding under Workplace Relations Commission agreements to increase salaries, these agreements do not cover almost half of those who responded to the survey.

The Wheel’s director of policy and advocacy Dónall Geoghegan said: “Behind each of these organisations is a team of people, staff, volunteers, and trustees, wondering whether they can keep the doors open this year. That should alarm anyone who relies on these services, and that includes the State. The sector is being stretched to its limits.

“The Wheel is calling for multiannual funding, better alignment between State contracts and actual costs, and streamlined reporting requirements.

Without meaningful reform to how the sector is funded and supported, we risk undermining the very organisations that communities across Ireland rely on every day.

When asked to identify the top three policy priorities for the sector, multi-annual funding came out on top, he said.

“This was followed by non-pay costs to be covered by State funding, and funding to provide for the cost of compliance/the streamlining of regulatory and funding-related compliance requirements.”

More than 70% of organisations surveyed reported an increase in compliance and reporting requirements over the past year.

Respondents said they were now required to submit the same data to multiple State bodies, such as the Charities Regulator, the Companies Registration Office, and the HSE.

One in three said they lack the capacity or funding to meet these obligations.

The findings were revealed as staff and volunteers of more than 400 charities, community groups, and social enterprises will gather at The Helix in Dublin on Thursday for the annual summit of The Wheel.

Its membership of more than 2,600 organisations includes most of Ireland’s best-known charities, as well as smaller community groups and social enterprises from across Ireland.

According to the Charity Regulator in its most recent survey, smaller charities with income less than €100,000 a year are significantly less likely to say they were in a stronger position in 2024, compared to 2022.