Presentation to EU Consult Winter Workshop 22 January 2016 na N - - PowerPoint PPT Presentation

Presentation to EU Consult Winter Workshop 22 January 2016

Úna Ní Dhubhghaill Sheila Nordon Chief Executive Executive Director Charities Regulatory Authority Irish Charities Tax Research

The Not-for-Profit Sector in Ireland Characteristics

Over 24,000 organisations (TCD, 2006) 12,000 organisations (INKEx, 2012) - charities (8,300 registered) and non-charitable not-for- profits

• Total income of €5.7 billion per year
• 100,000 people employed
• 560,000 volunteers per year
• 50,000 voluntary trustees/board members

Charities are defined in law:

• must have charitable purposes only
• must provide public benefit
• can avail of favourable tax treatment
• regulated by the Charities Regulatory Authority

Non-charitable not-for-profits have purposes not recognised as charitable under Irish law

The Not-for-Profit Sector in Ireland Challenges

Funding environment

• Fundraised income accounts for 10% to 15% of charity income
• Many charities report a drop in fundraised income in recent years
• Reductions in public funding
• New models of public funding

Public trust and confidence

• Senior executive remuneration
• Administrative expenses
• Fundraising practices and costs
• Transparency

Accountability arrangements

• Public funders
• Regulators
• Public

Regulatory changes

• Mandatory registration of charities
• Annual reporting requirements

Regulatory Reform of the Not-for-Profit Sector in Ireland Rationale and Objectives

1990s - Economic growth, advances in public services, investment in community and voluntary sector, policy debate about its role Regulatory gap indentified in respect of charitable organisations. Legislation developed in the 2000’s in consultation with the charity sector Charities Act became law in 2009 Reforms intended to:

• Provide a new statutory framework for the regulation of charities
• Strengthen accountability arrangements for charities
• Increase the transparency of the charity sector
• Provide a statutory definition of a charitable organisation
• Create a register of all charitable organisations operating in the State
• Create an independent regulator with investigation and prosecution powers

Regulatory Reform of the Not-for-Profit Sector in Ireland Recent Developments

Charities Regulatory Authority (CRA)

established October 2014

Public register of charities established

October 2014 – www.charitiesregulatoryauthority.ie

All charities have an obligation to register

with the CRA by April 2016

Unregistered charities cannot operate lawfully

in the State after this date

Registered charities must report annually to

the CRA on activities and finances

The CRA will publish these reports Complaints or concerns about charities can be

investigated by the CRA

Mandatory vs. Willing Transparency

• Regulatory Framework essential but NOT sufficient to

meet the challenges facing Not for Profits (NfPs) = one part of the infrastructure

• NfPs must embrace willing transparency – best practice

in Governance; Fundraising; Narrative and Financial reporting

• Challenge is how this information is then “understood”

and used by both the public and media.

• To date the focus of the media narrative has been on

costs and not on what public benefit is being delivered – true across different EU jurisdictions, not just Ireland

Why the negative discourse – easy answers?

• Lazy journalism; makes for good populist

headlines; lack of trust in all institutions – NfPs now fair game

• Public don’t understand us - Spirit of

voluntarism vs increasing professionalization – medium to large NfPs

• Poor practice in some NfPs – unwilling to

disclose information or engage – taking their public benefit for granted

More difficult – redirect the lens to

• urselves

How are we contributing to the negative coverage?

• What difference do we make – what are we doing with
• ur resources?
• If we can’t articulate the difference we deliver then

why expect the public/media to understand it?

• Public sector/Private sector/Public Benefit
• rganisations – need to claim and explain our space
• Regulator has a role – an ally that provides objective

evidence on the sector but

• NfPs have to stand up for themselves – engage &

explain rather than complain = that is the challenge!

Questions?

www.charitiesregulatoryauthority.ie www.ictr.ie