registered irish charities - social and economic impact ... · charities in ireland are estimated...

REGISTERED IRISH CHARITIES

Social and Economic

Impact Report

2018

3

ContentsForeword 6

Executive Summary 8

Chapter 1 IncomeofRegisteredIrishCharities 9

Chapter 2 EmploymentinIrishRegisteredCharities 14

Chapter 3 AnalysisofCharitableDonations 17

Chapter 4 LevelofVolunteeringinIrishCharities 20

Chapter 5 LegalStatus,StructureandCharacteristicsofRegisteredIrishCharities 22

Chapter 6 OverallEconomicandSocialImpacts 26

Chapter 7 Recommendationsondatacollectionandwiderpolicyimplications 28

Annex 1 DataSources 29

RegisteredIrishCharitiesSocialandEconomicImpactReport2018


List of TablesTable 1 TotalIncomeofOrganisationsEarningover€10MillionbySourceofIncome 11

Table 2 EstimatedNumberofEmployeesinCharitableOrganisations 14

Table 3 CharitableDonationsbyUrban/RuralArea 17

Table 4 CharitableDonationsbySocialGroup 19

Table 5 CharitableDonationsbyLivelihoodStatus 19

Table 6 EstimatedValueofVolunteeringinCharitableOrganisations 21

Table 7 LevelofVolunteeringinIreland 21

Table 8 TrusteesinCharitiesontheCharitiesRegister 22

Table 9 FrequencyandRelativeFrequenciesbyLegalForm 23

Table 10 OrganisationbyCharitableSubPurpose 25

Table 11 EconomicandSocialImpactsofCharitiesinIreland 27

Table 12 EconomicandSocialImpactsofCharitiesinIrelandwithIncomeGreaterthan€10Million 27

Table 13 EconomicandSocialImpactsofCharitiesinIrelandwithIncomeLessthan€10Million 27

Table 14 EconomicandSocialImpactsofCharitiesinIrelandlessGovernmentandPublicFunding 27

4


List of FiguresFigure 1 ReportedIncomeofOrganisationswithIncomeOver€10Million

byTypeofOrganisation 10

Figure 2 ReportedIncomebySource 10

Figure 3 PercentageofReportedIncomefromGovernmentandPublicFundsbyOrganisationType 12

Figure 4 IncomeofOrganisationsbyCharitablePurpose 12

Figure 5 NumberofOrganisationsbyIncomeBracket 13

Figure 6 IncomeofCharitableOrganisationsbyIncomeBracket 13

Figure 7 EstimatedEmploymentSupportedinOrganisationswithOver€10MinIncome 15

Figure 8 EstimatedEmploymentSupportedinOrganisationswithOver€10MinIncomebySourceofIncome 15

Figure 9 EstimatedEmploymentbySourceofIncome 16

Figure 10 EstimatedValueofDonationsbyRegion 18

Figure 11 NumberofOrganisationsbyNumberofVolunteers 20

Figure 12 NumberofOrganisationsbyYearofEstablishment 24

Figure 13 OrganisationsbyCharitablePurposeandReportedSize 24

Figure 14 EconomicImpactofCharitableOrganisations 26

5

Registered Irish Charities Social and Economic Impact Report 2018

6

ForewordOnbehalfoftheCharitiesRegulatoryAuthority,IwelcomethisindependentresearchbyIndeconEconomicConsultantsintothesocialandeconomicimpactofRegisteredIrishCharities.

ThisisthefirstpieceofresearchcommissionedbytheAuthorityaspartofitsstrategyofcreatingtransparency.Ithighlightsthehugediversityof

organisationswhichareregisteredascharitiesinIreland.AtoneendofthescaletherearelargehospitalsanduniversitieswithbudgetsfundedbytheExchequerextendingtohundredsofmillionsofEuroandhundredsofpaidstaff.Manyoftheselargecharitiesareengagedindeliveringcriticalhealth,educationandsocialservices.

Attheotherendofthescaletherearecompletelyvolunteer-ledorganisations,providingservicesatcommunitylevel,withsmallbudgets.Thecontrastisstark.

Organisationswithareportedincomeofover€10millionaccountfor79%ofthe188,714peopleemployedbycharities.However,manyofthesmaller,community-basedcharitiesaredependentonvolunteers.Thereportfoundthatmorethan300,000peoplevolunteerwithcharities,workingover67millionhoursannually.TheyareanimportantfeatureofregisteredIrishcharitiesandthelifebloodofsmallercharitableorganisations.Withoutvolunteers,manycharitieswouldnothavetheimpacttheycurrentlyhave.

LargepubliclyfundedcharitiesTherelativelysmallnumberofverylargepublicservicetypecharitiesaccountformostoftheeconomicimpactofregisteredcharities,intermsofincomeandemployment.TheyweredeemedtoberegisteredundertheCharitiesAct2009astheyheldCHYnumbersissuedbytheRevenueCommissionerspriortotheestablishmentoftheCharitiesRegulatorin2014.UndertheAct,theyareentitledtoberegistered,andtoremainasregisteredcharities,solongastheycontinuetoholdaCHYnumber.TheCharitiesRegulatorhasyettoregisteranylargepublicservicetypeorganisationasacharityunderitsregistrationprocess.

VisionThevisionoftheAuthorityisthatIrelandhasavibranttrustedcharitysectorthatisvaluedforthepublicbenefititprovides.TheAuthorityisdeterminedthattheregulationandprotectionofCharitiesinIrelandisevidenced-based,proportionateandtransparent.ThisresearchwillassisttheAuthoritytomonitorandregulateinaproportionatemannerandfacilitatedonors,beneficiariesandthepublictobroadenanddeepentheirunderstandingoftheroleofcharitiesinmodernIreland.

ThecreationoverthepasttwoyearsofaRegisterofCharitieshasenabledthisfirstindependentresearchtooccur.Asourdatasetexpandsandimproves,wewillseeanimprovementintheaccuracyandtimelinessofresearchinthecomingyears.

7


ThisparticularreportevidencesthesignificanteconomicandsocialimpactofIrishcharities.ItcrystallisesthediversityinsizeandscaleofcharitableactivityinIreland.

ThereportalsoindicatesthesignificantsupportprovidedbytheState,thelevelofvolunteerism,howcharitiesarefundedandotherinterestingandrelevantfacts.ThereportclearlyshowsthatIrelandhasavibrantcharitysectorwhichimpactssociallyandeconomicallyinthecomplexweaveofIrishsociety.

ThisresearchwillfeedintothecreationofasecondstrategyfortheregulationandprotectionofcharitiesinIreland.Wehopeitwillalsofacilitateevidenced-basedpublicpolicydevelopmenttosupportcharitiesinIreland.

Finally,IwouldliketothankthestaffoftheAuthorityandtheMinistersandtheirofficialswithintheDepartmentofRuralandCommunityDevelopmentfortheirsupportwhichenabledthisresearchtooccur.

Patrick HopkinsChairpersonCharitiesRegulatoryAuthority


8

IndeconwasappointedbytheCharitiesRegulatoryAuthoritytocompleteindependentresearchintotheRegisterofIrishCharitieswithaparticularemphasisontheeconomicandsocialimpactofregulatedcharities.

UsingIndecon’smodeloftheIrisheconomy,whentotalmacro-economicimpactsareestimated,charitiesinIrelandareestimatedtohavedirect,indirectandinducedexpenditureof€24.98billion,andsupport289,197employees.IninterpretingthedataIndeconnotesthatalleconomicactivityhasanimpactonotherpartsoftheeconomyandthisisnotuniquetoregisteredcharities.

Theevidencepresentedalsoindicatesthatthereareover300,000peoplevolunteeringforregisteredcharitieswithaneconomicvalueofthevolunteeringof€649millionperyear.However,italsonotesfromapublicpolicyperspectivethatvolunteerismincharitiesislowerthaninothernot-for-profitareasandthatthe15-34agegrouphasthelowestparticipationrate.

TheresearchalsohighlightedthediverserangeoforganisationswhichareregisteredascharitiesinIreland.Theseincludeasmallnumberofpublicservicetypeorganisationssuchasmajorhospitals,universitiesandgovernmentservicesaswellasaverylargenumberofsmaller,localisedandcommunity-basedorganisationswhichhavelowlevelsofincomeandemploymentbuthighlevelsofvolunteerism.

Overhalfofregisteredcharitiesexaminedhadincomeoflessthan€250,000andthemajorityofthisgrouphadincomeoflessthan€50,000.Intandemwiththis,theresearchprovidesevidencethatasignificantnumberofthesecharitieshavenoemployeesandexistbecauseoftheparticipationofvolunteers.Thelargenumberofverysmall,volunteer-ledcharitieshasimplicationsforgovernanceandregulatoryoversightinthatanyregulationsandcodesneedtobeproportionateandrecogniseandsupportthislargegroupofgrassrootscharities.

Theresearchhighlightsthatarelativelysmallnumberofverylargepublicservicetypecharitiesaccountformostoftheemploymentandeconomicimpact.Theresultsshowthatoftheestimated189,000employeesinregisteredcharities,approximately100,000ofthesejobsaredirectlysupportedbypublicexpenditure.

TheresearchindicatesthatcharitiesinIrelandarewellsupportedbytheState.However,someparticularlytheverylargecharities,haveasignificantdependencyonpublicfunding.Itisalsonoteworthythatwithinthisparticulargroup,philanthropyrepresentedasmallproportionofreportedincomeforIrishcharities.Thispresentsbothopportunitiesandchallengesforfuturefunding.

Executive Summary

9


Income of Registered Irish Charities1

Thescaleofeconomicactivityofcharitableorganisationsisindicatedbythefactthatatotalof€14.5billionofincomewasreportedbyorganisationsontheRegisterofCharities1,2.

Indeconestimatesthatifaccountistakenofcharitableorganisationswhodidnotreporttheirfinancialdatatheoverallsizeofcharitableorganisationsmaybeashighas€16billion(equalto5.8%ofGDP).3Ifhealthandeducationorganisationsareexcludedtheestimatedsizeofcharitableorganisationsisaround€8.3billion.TheseestimatesexcludetheHSEasaseparateorganisation,howeverHSEpayments/grantstoregisteredcharitiesareincludedinouranalysis.

Organisationswhoreportedincomeofover€10millionaccountedforthemajorityoftheincomeofregisteredcharities.Ananalysisofthiscohortprovidesimportantnewinsightsofthetypeoforganisationsthatareregisteredcharities.Thisindicatesthathospitalsandotherhealthcareprovidershaveincomeofover€3.1billion.Inaddition,highereducationandresearchorganisationsreportincomeofjustunder€3billion.

1 Indecon’sanalysisofcharitableorganisationsinIrelandusesdatafromtheRegisterofCharitiesasatYearEnd2017whichincludesdatafromannualreportsprovidedtotheCharitiesRegister,themajorityofwhichcovertheperiod1/1/2016to31/12/2016.Intotaldetailedfinancialinformationon5,746organisationswasanalysedaspartofthisresearchaswellasdatafromtheCentralStatisticsOffice(CSO).ItalsoincludessupplementarydatafromfinancialaccountsoffivelargecharitiesforwhichfinancialinformationwasnotincludedontheRegisterofCharities.

2 TheRegisterofCharitiesisavailableat:www.charitiesregulator.ie

3 Thisisanindicativeestimatebasedonassumingthatsmallercharitieswhodidnotreporttheirfinancialincomeaccountedforanadditional10.3%oftheincomeofcharities.

http://www.charitiesregulator.ie


10

Itisclearfromthedatathatthesepublicservicetypeorganisationsaccountforthemajorityoftheincomeoflargercharities(seeFigure1below).

Figure 1:Reported Income of Organisations with Income Over €10 Million by Type of Organisation

Source: Indecon analysis of Charities Regulator data

Thesignificanceofpublicfundingforcharitableorganisationsisevidentinthefollowingfiguretwobelowwhichshowsthatpublicfundingof€7.69billionwasprovidedtotheregisteredcharities.Ofthereportedincome,incomefromphilanthropyanddonationsmadeup7%ofthetotal.

Figure 2:Reported Income by Source


Note: Figures include all organisations who provided financial data as well as information from financial accounts of three other larger charities

3,105.72,964.0

1,683.7

1,011.6 998.7

1,740.3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Hospitals and Other Health

Organisations

Education and

Training Boards

Disability and Other Charities

Primarily Funded by HSE or Other Government

Funding

Other GovernmentServices/

DevelopmentAgencies

Other

Type of Organisation

Repo

rted

Inco

me

(€ M

illio

n)

Institutes of Technology/

Universities and Other Higher

Education Orgs/Research

Orgs

7,691

1,835965 1,406 2,617

14,514

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Government and Public Bodies

Trading Philanthropy/Donations

Other Unreported Total

Inco

me

(€ M

illio

n)

Income Source

11


Table1belowbreaksdownthesourcesofincomeandfundingfortheselargercharities.Thisagainshowsthesignificanceofincomefromgovernmentandpublicbodies.ItalsoindicatesthatwhilePhilanthropyisstrongestinhighereducationandresearch,thereisroomforgrowthinotherareas.

Table 1:Total Income of Organisations Earning over €10 Million by Source of Income


Government and Public

Bodies

Philanthropy and

Donations

Trading Income

Other Income

Source Unreported

Total Income

HospitalsandOtherHealthOrganisations

1,710.5 23.1 375.4 412.8 583.8 3,105.7

InstitutesofTechnology/UniversitiesandOtherHigherEducationOrgs/ResearchOrgs.

1,214.6 57.4 742.6 337.1 612.2 2,964.0

EducationandTrainingBoard

1,529.0 0.2 0.2 48.8 105.4 1,683.7

DisabilityandOtherCharitiesPrimarilyFundedbyHSEorOtherGovernmentFunding

878.9 9.9 13.3 28.4 81.1 1,011.6

OtherGovernmentServices/DevelopmentAgencies

815.8 25.1 112.9 21.7 23.3 998.7

Other 385.9 328.6 176.3 200.3 649.2 1,740.3

Total 6,534.8 444.3 1,420.8 1,049.1 2,055.0 11,504.0



12

AnanalysisofthesignificanceofpublicexpenditureinfundingdifferenttypesofcharitableorganisationsispresentedinFigure3below.Thisshowsthatinmanysectorspublicexpenditureaccountedforover90%oftheincomeoftheregisteredcharityandagainhighlightstheeconomicimportanceofpublicservicetypeorganisationsineducationandhealthcarewithinregisteredcharities.

Figure 3:Percentage of Reported Income from Government and Public Funds by Organisation Type


AnanalysisoftheincomebycharitablepurposepresentedinFigure4,showsthatreliefofpovertyoreconomichardshipaccountedforapproximately€2billionoutofatotalof€14.5billion.

Figure 4:Income of Organisations by Charitable Purpose


Note: Sum of income by charitable purpose does not equal total report income as charities could select more than one purpose

96.9% 94.5% 91.2%

65.4%

51.5%

35.5%

0%

20%

40%

60%

80%

100%


Organisations

Education and

Training Boards

Disability and Other Charities

Primarily Funded by HSE or

Other Government Funding

Other Government

Services/Development

Agencies

OtherInstitutes of Technology/

Universities and Other Higher

Education Orgs/Research Orgs

Perc

enta

ge o

f Inc

ome

from

Gov

ernm

ent a

nd P

ublic

Bod

ies

Am

ongs

t th

ose

Who

Rep

orte

d In

com

e fr

om G

over

nmen

t and

Pub

lic B

odie

s

1,2212,037

6,5957,561

14,514

0

4,000

8,000

12,000

16,000

Advancement of religion

Relief of poverty or economic hardship

Advancement of education

Other purpose that is of benefit to the community

Total

Inco

me

(€ M

ilion

)

Charitable Purpose

13


Whilearelativelysmallnumberofverylargepublicservicetypecharitiesaccountformostoftheeconomicimpactofregisteredcharities,itisofnotethatoverhalfofregisteredcharitieshadincomeoflessthan€250,000.Thelargenumberofverysmallcharitieshasimplicationsforgovernanceandregulatoryoversight.

Figure 5:Number of Organisations by Income Bracket


AscanbeseeninFigure6,averysmallnumber(2.8%)oforganisationswhoreportedincomeofover€10million,accountfor79.3%ofthereportedincomeofthesecharities.

Figure 6:Income of Charitable Organisations by Income Bracket


160

1,821

1,601

1,298

699

1642

0

400

800

1,200

1,600

2,000

€0 €1 - €49,999

€50,000 - €249,999

€250,000 - €999,999

€1,000,000 - €9,999,999

€10,000,000 + Unreported

Income Bracket

Num

ber o

f Org

anis

atio

ns

€0 €1 - €49,999

€50,000 - €249,999

€250,000 - €999,999

€1,000,000 - €9,999,999

€10,000,000 +

0 34 203 638 2,134

11,504

14,514

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Total

Inco

me

(€ M

illio

n)

Income Bracket


14

WhilepreciseemploymentnumbersarenotreportedontheCharitiesRegulatordatabase,Indeconhaveestimatedthatthereareapproximately189,000employeesincharitableorganisations4.

Table 2:Estimated Number of Employees in Charitable Organisations

Estimatednumberofemployeesincharitableorganisations 188,714


4 Estimatedbasedonexpendituredataonsectoralsalariesandaverageearnings.Whilesomecharitiesmayhavelowerthannationalaverageearnings,inmajorcharitieswhoaccountformostoftheexpenditureearningsmaybehigher.

Employment in Irish Registered Charities2

15


Organisationswithreportedincomeofover€10millionaccountforalargeportionoftheestimatedemployees(approximately79%).Over55,000ofemployeesareestimatedtoworkinhospitalsandotherhealthcareorganisations,withafurther38,000inhighereducationandresearchorganisations.

Figure 7:Estimated Employment Supported in Organisations with Over €10M in Income


Usingthepercentagesourcesofincomeforlargecharitieswithover€10mofincome,Indeconestimatesthatthemajorityofemploymentissupportedbyincomefromgovernmentandpublicbodies(87,707employees).Tradingincomeisestimatedtosupportapproximately18,214employeeswhilephilanthropyanddonationssupport3,745employees.

Figure 8:Estimated Employment Supported in Organisations with Over €10M in Income by Source of Income



Organisations

Education and

Training Boards

Disability and Other Charities Primarily Funded by HSE or Other Government

Funding

Other GovernmentServices/

DevelopmentAgencies

Other

Estim

ated

Em

ploy

men

t Sup

port

ed

Institutes of Technology/Universities and

Other Higher Education Orgs/Research Orgs

55,074

37,636

21,23817,915

5,606 11,949

0

10,000

20,000

30,000

40,000

50,000

60,000



Trading Income

Philanthropy + Donations

Other Income

Source Unreported

87,707

18,214

3,745

14,214

25,539


16

Basedonthepercentageoftotalincome,thefollowingfigureshowsIndecon’sestimateforthetotalnumberofemployeesinallregisteredcharitiessupportedbyGovernmentexpenditure.Thisrepresents53%oftheestimatedemploymentsupportedbycharitableorganisations.Employmentinalloftheregisteredcharitiessupportedbyphilanthropic/donationsrepresentsasmallpercentageofoverallemployment(12,543).

Figure 9:Estimated Employment by Source of Income



Philanthropy/Donations

Unreportedsource

100,007

12,54323,856

18,283 34,025

188,714

0

50,000

100,000

150,000

200,000

Trading Other Total

No.

of E

mpl

oyee

s

Source of Income

17


Indecon’sestimateforhouseholdcharitabledonationsin2018is€350m.Alsoofnoteisthatreporteddonationstolargercharitiesamountedto€389m,butthisfigureincludesdonationsfromcorporationsandothersources.

Table 3:Charitable Donations by Urban/Rural Area

2005 Average Weekly Household Donation



Number of Households 2016

2018 Estimated Value of Donations (€ Million)

Urban 2.8 3.83 3.51 1,082,119 204.91

Rural 2.25 5.37 4.35 620,170 145.54

State 2.59 4.40 3.75 1,702,289 350.45

Source: Indecon analysis of Household Budget Survey, Census and Central Bank data

Analysis of Charitable Donations3


18

ReflectingitseconomicandpopulationsizeDublinaccountedforasignificantpercentageofcharitablehouseholddonations,withanestimatedvalueofdonationsof€94.06million.(SeeFigure10belowofbreakdownofestimatedvalueofdonationsbyregion).

Figure 10:Estimated Value of Donations by Region


West, €33.95m

Mid-West, €33.06m

Mid-East, €48.79m

Border, €35.07m

South-West, €55.02m

South-East, €30.13m

Midlands, €20.39m Dublin,

€94.06m

19


ThefollowingtableshowsthatthoseinSocialGroup1(Professionals,employersandmanagers)hadthehighestaverageweeklydonationineachofthethreeyearsreflectingdifferencesinincome.

Table 4:Charitable Donations by Social Group

Social Group






1 3.68 6.90 5.16 577,484 163.59

2 2.82 3.39 2.95 282,072 45.68

3 2.11 3.08 2.22 271,046 33.03

4 1.61 2.62 3.00 272,025 44.80

5 1.63 3.72 3.23 295,038 52.32

Unreported - - - 4,624 11.03

State 2.59 4.40 3.75 1,702,289 350.45


Householdswithretiredpersonshadthehighestaverageweeklyexpenditureoncharitabledonations(€7.08).Theyhadthehighestestimatedvalueofdonations(€131.14million),withhouseholdswithemployeeshavingthesecondhighest(€129.79million).(Table5refers).

Table 5:Charitable Donations by Livelihood Status

Livelihood Status






SelfEmployed 2.40 6.65 4.85 175,511 46.73

Retired 2.83 7.16 7.08 337,391 131.14

Employee 3.20 4.43 2.82 838,365 129.79

Unemployed 0.84 1.63 2.38 136,319 17.81

Other 1.55 2.76 2.17 214,703 25.58

State 2.59 4.40 3.75 1,702,289 350.45


Level of Volunteering in Irish Charities4


20

Thefollowingfigureshowsthatoverhalfofcharitableorganisations(54.8%)indicatedtheyhadbetweenoneand20volunteers.Justover3%ofcharitiessaidtheyhadover250volunteers.

Figure 11:Number of Organisations by Number of Volunteers


CSOdataonthepercentageofindividualswhoareinvolvedinvolunteeringsuggeststhatthereareapproximatelyonemillionvolunteers.Howevermanyoftheseareinvolvedinsporting,humanrights,religious,politicsorotherorganisationswhicharenotregisteredcharities.UsingdataontheRegisterofCharities,Indeconestimatesthatthereare300,536volunteersinregisteredcharitableorganisations.Thisisbasedonamid-pointfornumbersofvolunteersbasedonreportedrange.WeintegratethiswithCSOdataofestimated226hoursofvolunteeringannually.

Num

ber o

f Org

anis

atio

n

1,012

2,089

1,057866

526 190

0

500

1,000

1,500

2,000

2,500

None 1-9 10-19 20-49 50-249 250+

Number of Volunteers

21


Indecon’sestimateforthevalueofvolunteeringinregisteredcharitableorganisationsusingtheminimumwageis€648.8million.ThisestimateislowerthanthetotalvalueofvolunteeringcontainedintheCentralStatisticsOffice’sQuarterlyNationalHouseholdSurvey,whichcoversalltypesofvolunteering,notjustvolunteeringforregisteredcharitableorganisations.

Table 6:Estimated Value of Volunteering in Charitable Organisations

Estimatednumberofvolunteers 300,536volunteers

Estimatednumberofvolunteeringhourspervolunteerperannum(basedonQuarterlyNationalHouseholdSurveyspecialmodule)

226hours

Estimatedvolunteeringhoursincharitableorganisations 67.9millionhours

Estimatedvalueofvolunteeringincharitableorganisations(usingminimumwage)-€million

€648.8million

Estimatedvalueofvolunteeringincharitableorganisations(usingaverageearnings)-€million

€1,539.4million

Source: Indecon analysis of Charities Regulator, Quarterly National Household Survey and Central Statistics Office data

Note: The number of volunteers is estimated using 875 as the average number of volunteers for charitable organisations that

reported 250+ volunteers. This is based on the midpoint of 250 and 1,500.

ThefollowingtablecontainsIndeconanalysisoftheQuarterlyNationalHouseholdSurveydataonvolunteeringinIreland.Whenbrokendownbyagecategory,thosebetweentheagesof45and64weremostlikelytovolunteerandhadthehighestestimatedvalueofvolunteering.

Table 7:Level of Volunteering in Ireland

Volunteer Do Not VolunteerNumber of Hours

Volunteered (Million)Unweighted sample

(No. of Persons)

State 28.4% 71.6% 232.8 13,891

Sex

Male 28.1% 71.9% 99.2 5,534

Female 28.7% 71.3% 133.6 8,357

Age Group

15-24 16.8% 83.2% 16.0 674

25-34 21.7% 78.3% 23.1 2,271

35-44 30.3% 69.7% 41.4 3,019

45-54 38.0% 62.0% 58.8 2,576

55-64 37.2% 62.8% 52.2 2,285

65+ 27.8% 72.2% 41.2 3,066

Source: Indecon analysis of Quarterly National Household Survey Special Module on Volunteering and Wellbeing (2013) and Central

Statistics Office data

Legal Status, Structure and Characteristics of Registered Irish Charities

5RegisteredIrishCharitiesSocialandEconomicImpactReport2018

22

Thefollowingtableshowsthattherewereover51,000trusteesinIrishregisteredcharities,withtheaveragecharityhaving6.5trustees.Nodataisavailableonthequalificationorexpertiseoftrustees.

Table 8:Trustees in charities on the Charities Register

NumberofTrustees 51,219

Average 6.5

Median 6


23


Thefollowingtableshowsthatalmosthalf(44.3%)oforganisationsontheCharitiesRegisterarecompanieslimitedbyguarantee.Thenextmostcommonformsareboardofmanagementforprimaryschoolsandassociations.Asmallnumberoforganisationsareprivateunlimitedcompaniesorlimitedliabilitypartnerships.

Table 9:Frequency and Relative Frequencies by Legal Form

Legal FormNumber of

OrganisationsPercentage of Organisations

Cumulative Percentage

CompanyLimitedbyGuarantee 3,700 44.3% 44.3%

BoardofManagement(PrimarySchool) 1,367 16.4% 60.7%

Association 1,357 16.3% 77.0%

Other 459 5.5% 82.5%

PrivateCharitableTrust 441 5.3% 87.8%

PrivateLimitedCompany 348 4.2% 91.9%

BoardofManagement(Post-PrimarySchool) 226 2.7% 94.6%

OtherTrust 190 2.3% 96.9%

PublicLimitedCompany 98 1.2% 98.1%

FriendlySociety 52 0.6% 98.7%

Co-operative 31 0.4% 99.1%

DesignatedActivityCompany 31 0.4% 99.5%

RoyalCharterGovernance 30 0.4% 99.8%

PrivateUnlimitedCompany 12 0.1% 100.0%

LimitedLiabilityPartnership 3 0.0% 100.0%

Total 8,345 100.0% 100.0%



24

Other Characteristics of Irish Charities

Whilstthemajorityofcharities(4,839)wereestablishedsince1990,asignificantminoritywereestablishedpriorto1950.Thefollowingfigureshowsthat745organisationswereestablishedbefore1900.

Figure 12:Number of Organisations by Year of Establishment


Figure13presentsthebreakdownofcharitablepurposebythesizeofcharitableorganisation.Whilsttherearesomedifferencesacrossthedifferentsizes,thebreakdownsaresimilaracrossthedifferentsizes.

Figure 13:Organisations by Charitable Purpose and Reported Size


Note: Percentages do not add up to 100% as many charities report more than one charitable purpose

Num

ber o

f Org

anis

atio

n

84

661495

8381,032

1,499

2,245

1,095

0

500

1,000

1,500

2,000

2,500

Pre - 1800 1800 - 1899 1900 - 1949 1950 - 1974 1975 - 1989 1990 - 1999 2000 - 2009 2010 to present

Perc

enta

ge o

f Org

anis

atio

n

13.5% 16.5%13.3%

32.0%28.6%

34.1%

19.6% 18.8% 20.2%

58.3% 60.3%65.0%

0%

20%

40%

60%

80%

Small Medium Large

Advancement of religion Advancement of educationRelief of poverty or economic hardship Other purpose that is of benefit to the community

25


Evidenceoncharitiessub-purposeispresentedinTable10.Thisshowsthatalmosthalfoforganisations(47.3%)havingtheadvancementofcommunitywelfareincludingthereliefofthoseinneedbyreasonofyouth,age,ill-healthordisabilityasacharitablesub-purpose.Thiswasfollowedbytheintegrationofthosewhoaredisadvantagedinsociety(33.9%)asoutlinedinthefollowingtable.

Table 10:Organisation by Charitable Sub Purpose

Charitable Sub Purpose Number Percentage

Advancementofcommunitywelfareincludingthereliefofthoseinneedbyreasonofyouth,age,ill-health,ordisability

1,992 47.3%

Integrationofthosewhoaredisadvantaged,andthepromotionoftheirfullparticipation,insociety

1,430 33.9%

Advancementofcommunitydevelopment,includingruralorurbanregeneration

1,104 26.2%

Promotionofhealth,includingthepreventionorreliefofsickness,diseaseorhumansuffering

1,065 25.3%

Advancementofthearts,culture,heritageorsciences 867 20.6%

Promotionofcivicresponsibilityorvoluntarywork 855 20.3%

Protectionofthenaturalenvironment 303 7.2%

Advancementofenvironmentalsustainability 293 7.0%

Advancementoftheefficientandeffectiveuseofthepropertyofcharitableorganisations

238 5.6%

Promotionofreligiousorracialharmonyandharmoniouscommunityrelations

236 5.6%

Advancementofconflictresolutionorreconciliation 203 4.8%

Preventionorreliefofsufferingofanimals 156 3.7%


Note: Percentages do not add up to 100% as many charities report more than one charitable sub purpose

Overall Economic and Social Impacts6


26

Figure14presentsanoverviewoftheeconomicimpactofcharities.Thisincludesthedirectimpactandtheoverallindirectandinducedimpactasmeasuredbyeconomicmultipliers5.

Figure 14:Economic Impact of Charitable Organisations


UsingIndecon’smodeloftheIrisheconomy,whentotalmacro-economicimpactsareestimated,charitiesinIrelandareestimatedtohavedirect,indirectandinducedexpenditureof€24.98billion,andsupport289,197employees.IninterpretingthedataIndeconnotesthatalleconomicactivityhasanimpactonotherpartsoftheeconomyandthisisnotuniquetoregisteredcharities.

5 Directmultipliersallowfortheestimationofthedirecteffectsofeconomicactivityintermsofexpenditureandemployment.TypeImultipliersestimatetheindirectimpactsofeconomicactivity.Indirectimpactsincludetheknock-onbusinessactivitythatissupportedthroughdirecteconomicactivity,TypeIImultipliersincludebothindirectandinducedeffects.Inducedeffectsareconcernedwiththeknock-onimpactofhouseholdconsumptionduetodirecteconomicactivity.

Households

Households

EXPENDITURE BY CHARITABLE ORGANISATIONS

Organisations

OrganisationsINDUCED EFFECTS

Government

Government

Government

Imports

Imports

Imports

DIRECT EFFECTS

INDIRECT EFFECTS

Households Organisations

27


Table 11:Economic and Social Impacts of Charities in Ireland

Direct Impact Indirect Impact Induced Impact Total Impact

Expenditure(€Million) 14,491 3,907 6,583 24,981

Employment 188,714 39,647 60,835 289,197

Using Minimum Wage Using Average Earnings

EstimatedValueofVolunteeringinCharitableOrganisations(€Million)

648.8 1,539.4

Source: Indecon analysis

Thefollowingtableshowsthatamongstorganisationswithincomeofover€10million,Indeconestimatesthattheirexpenditureimpactis€19.6billion,withemploymentof228,977supported.

Table 12:Economic and Social Impacts of Charities in Ireland with Income Greater than €10 Million



Employment 149,418 31,392 48,167 228,977


Justover60,000jobs(lessthan25%ofthetotaljobssupported)aresupportedbyorganisationswithincomeoflessthan€10million.

Table 13:Economic and Social Impacts of Charities in Ireland with Income Less than €10 Million


Expenditure(€Million) 3,136 846 1,425 5,406

Employment 39,296 8,256 12,668 60,219


RemovingincomefromGovernmentandpublicfundingleadstoanestimatedtotalexpenditureimpactof€11.723billionand135,941employeessupported,seeTable14below.Thesefiguresreflecttheimportanceofgovernmentandpublicfundingtotheseorganisations.Inevaluatingthewidereconomicimpactswenotethatthereiswhateconomistsrefertoasashadowpriceoropportunitycostassociatedwithallpublicexpenditures.ThisisatechnicaltermwhichrelatestothefactthatbecauseGovernmentsfundexpenditurebyraisingtaxationtherearepotentialnegativeimpactselsewhereofthistaxationontheeconomy.Thisneedstobetakenintoaccountinconsideringtheneteconomicimpactofregisteredcharities.

Table 14:Economic and Social Impacts of Charities in Ireland less Government and Public Funding

Direct ImpactIndirect Impact

Induced Impact Total Impact


Employment 88,707 18,637 28,596 135,941


Note: This assumes that all income from government and public bodies to charitable organisations is spent

28

BasedonthefindingsofIndecon’sanalysis,weoutlinebelowanumberofrecommendationsforrefinementsindatacollectiontofacilitatefutureresearch:

> IndeconbelievesthereismeritinconsideringadjustmentstotheRegisterofCharitiestoallocatecharitiesbynatureoforganisation(hospitals,thirdleveleducationalinstitutions,etc.).

> IndeconrecommendsthatadditionaldataonemploymentnumbersandonFTEandpart-timeemployeesiscollectedfromallcharitableorganisations.

> Therearemeritsincollectingdataongovernanceincludingexpertiseoftrustees,numberandtypeofotherboardinvolvementsandtraining/qualificationincorporategovernance.

> Informationonwhetherfocusisonlocal,regional,nationaloroverseasactivitiesshouldbecollected.

> Itisimportanttoensurethatalllargecharitiessubmitdetailedfinancialinformationandthatallcharities,includingsmallerregisteredcharities,submitincomeandexpenditureaswellasestimateofoverallemployment.

Wider Policy Implications

ThefindingsinthisstudyhavepotentiallyimportantimplicationswhichshouldbeconsideredbytheCharitiesRegulatorandbypolicymakers.Theresearchparticularlypointstotheneedfor:

> InfrastructurestosupportvolunteeringinregisteredIrishcharities,particularwithinthe18-34agegroups.

> InfrastructurestoincreaseandsupportphilanthropyanddonationstoregisteredIrishcharities.

> RegulationwhichrecognisesthediversityofregisteredIrishcharitiesandbeparticularlysensitivetothelargeamountofvolunteer-led,lowincomeandgrassrootscharities.

Recommendations on data collection and wider policy implications

7RegisteredIrishCharitiesSocialandEconomicImpactReport2018

29


Annex 1: Data SourcesTheCharitiesRegulator’sCharitiesRegister(as of end of December 2017).Availablefromhttp://www.charitiesregulator.ie

AnnualFinancialAccountsofCharitesaspertheCompaniesRegistrationOffice(CRO).

CentralBankofIreland,2018.Quarterly Bulletin – QB1 2018.Availableat:https://www.centralbank.ie/docs/default-source/publications/quarterly-bulletins/qb-archive/2018/quarterly-bulletin---q1-2018.pdf?sfvrsn=5

CentralStatisticsOffice,2018.Census 2016.Availablefrom:http://www.cso.ie/en/databases/

CentralStatisticsOffice,2018.Household Budget Survey 2015.Availablefrom:http://www.cso.ie/en/databases/

CentralStatisticsOffice,2015.Quarterly National Household Survey – Volunteering and Wellbeing.Availableat:http://pdf.cso.ie/www/pdf/20150716100414_QNHS_Volunteering_and_Wellbeing_Q3_2013_full.pdf

CentralStatisticsOffice,2012.Household Budget Survey 2009-2010.Availableat:http://www.cso.ie/en/media/csoie/releasespublications/documents/housing/2010/full.pdf

CentralStatisticsOffice,2007.Household Budget Survey 2004-2005.Availableat:http://www.cso.ie/en/media/csoie/releasespublications/documents/housing/2005/2004-2005.pdf

CharityCommissionforEnglandandWales,2018.Register of Charities as of 31 December 2017.Availableat:https://www.gov.uk/government/publications/charity-register-statistics/recent-charity-register-statistics-charity-commission

Powell,A.,Cortis,N.,Ramia,I.andMarjolin,A.(2017).AustralianCharitiesReport2016.CentreforSocialImpactandSocialPolicyResearchCentre,UNSWAustralia.Availableat:http://australiancharities.acnc.gov.au/wp-content/uploads/2017/12/Australian-Charities-Report-2016-FINAL-20171203.pdf

http://www.charitiesregulator.ie/

https://www.centralbank.ie/docs/default-source/publications/quarterly-bulletins/qb-archive/2018/quarterly-bulletin---q1-2018.pdf?sfvrsn=5

https://www.centralbank.ie/docs/default-source/publications/quarterly-bulletins/qb-archive/2018/quarterly-bulletin---q1-2018.pdf?sfvrsn=5

http://www.cso.ie/en/databases/

http://www.cso.ie/en/databases/

http://pdf.cso.ie/www/pdf/20150716100414_QNHS_Volunteering_and_Wellbeing_Q3_2013_full.pdf

http://pdf.cso.ie/www/pdf/20150716100414_QNHS_Volunteering_and_Wellbeing_Q3_2013_full.pdf

http://www.cso.ie/en/media/csoie/releasespublications/documents/housing/2010/full.pdf

http://www.cso.ie/en/media/csoie/releasespublications/documents/housing/2005/2004-2005.pdf

https://www.gov.uk/government/publications/charity-register-statistics/recent-charity-register-statistics-charity-commission

https://www.gov.uk/government/publications/charity-register-statistics/recent-charity-register-statistics-charity-commission

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