Peter McVerry Trust suffering 'ongoing cash flow and funding challenges'

Fr Peter McVerry. The trust's overdue 2024 accounts show it recorded a loss of €1.3m. File picture

The crisis-hit homeless and housing charity the Peter McVerry Trust, which has received a €15m bailout from Government, recorded a loss of €1.36m in 2024 “and is experiencing ongoing cash flow and funding challenges”.

The trust's overdue 2024 accounts, signed off by members of the charity's board of trustees on July 13, 2026, show it recorded a loss of €1.3m, driven largely by a €3.9m impairment charge on 20 of its properties, including a writedown of €3.01m on a single building.

The trustees also acknowledged uncertainty over the future support of the Charities Regulator, the Approved Housing Bodies Regulatory Authority (AHBRA), and key funders in light of recent corporate governance issues.

It follows a series of critical inspection findings by AHBRA and the Charities Regulator, which identified serious governance shortcomings and inadequate financial controls at the trust.

The trustees state that they have undertaken a detailed assessment of the charity’s ability to continue as a going concern.

They concluded that the combination of these matters "represents a material uncertainty that may cast significant doubt on the ability of the company to continue to meet its obligations as they fall due".

The trustees said they remained confident the organisation could continue operating despite the challenges it faces. 

In their annual report, the trustees said the organisation had made significant progress in recent years.

“After an extremely difficult 2023, the trust has reduced losses by 87%. The trust has implemented a significant number of changes, reflecting the new funding landscape and realities of what services can be sustained,” they said.

They are confident, "based on 2026 budgets and cash flow projections to the end of 2027, that the organisation is continuing to move in the right direction”.

The trust received €15m in emergency Government funding, to be drawn down in phases, subject to 32 conditions set by the Department of Housing.

As part of the arrangement, the trustees said the charity agreed to transfer unencumbered properties to local authorities up to the value of the funding received.

According to the accounts, that process is progressing, although more slowly than anticipated, and is expected to be completed by the end of 2026.

Fundraising income fell sharply during the year, with donations and legacies dropping 65% from €5.96m in 2023 to €2.08m in 2024.

The decline followed a major reduction in the charity's fundraising operation, which fell from 12 staff to two part-time employees.

A number of fundraising events, including the Gala Ball, Long Walk Home series, Wexford Cycle, and Christmas Carol Concert, were also cancelled in 2024 because trustees felt it was not appropriate to proceed with them. 

They said they hoped some events would return in future years.

Governance costs totalled €911,940 in 2024, including €755,096 spent on recovery measures and regulatory compliance.

Spending on accountancy support services almost quadrupled from €357,390 in 2023 to €1.36m in 2024.

Overall expenditure totalled €62.3m, with staff costs of €35.8m accounting for the largest share. 

Employee numbers fell from 871 to 761 during the year.

The charity received €58.2m in funding from State bodies, including the HSE, Tusla, local authorities, and €26.5m from the Dublin Region Homeless Executive, an increase of 11% on the previous year.

Despite the challenges, cash reserves increased from €7.5m to €11.1m, while the value of the trust's assets stood at €160.6m at the end of 2024.