The Irish are among the most generous people per capita when it comes to charitable donations. As a result, competition for the donor pound is fierce. According to the Revenue Commissioners, there are more than 5,800 organisations with charitable exemption status. Of these, 280 are qualified to receive corporate donations.

Potential donors may be put off by the sheer number of charities in the State or recent suggestions of financial impropriety by one well-known organisation in the sector and allegations against others in the past few years. Despite such difficulties, charities have found donors are still giving, but perhaps more hesitantly than before. If the results of a survey released last week on attitudes towards charitable giving and volunteering in the Republic are to be believed, the charity sector is facing an uphill public relations battle.

The National College of Ireland's Reaching Out report revealed disquiet concerning charitable organisations among the 1,181 people surveyed.

More than 50 per cent of respondents perceived charities as honest while another 35 per cent were not sure. Almost one-third were concerned about the accountability of such organisations.

"Respondents feel that 20p in the pound is an acceptable level of administration costs but they believe that in the case of home-based organisations only 50p of each pound donated goes to the cause, while in the case of overseas organisations it is believed that only 40p gets to the cause."

Irish donors have very little knowledge of where their donations actually go unless the charity voluntarily provides the information. Unfortunately, Irish legislation does little to provide donors with a framework, rating, or benchmark by which to judge individual charities.

Despite the recommendation of a special Government advisory group in 1996, which examined the charity/fundraising sector, there is no register of charities in the Republic. The Department of Justice, Equality and Law Reform says the legislative programme relating to charities is in the preliminary stages.

For several years, charities have been pushing for a register of charities similar to the structure developed in Britain. In the absence of a register, many charities self-regulate in the belief that public accountability and professionalism are key to the survival of the sector.

Like many in the sector, Third World charity Trocaire feels strongly that it has an obligation to provide donors with information and assurances as to how their money is spent. As a trust the charity has no legal obligation to publish its accounts, yet it does so each year in its annual report for the purpose of public accountability.

Earlier this week, the charity published a donor's charter that promises, among other things, that Trocaire will continue to maximise donations by seeking matching funds and hold administration costs to acceptable levels.

Recently, there has been discussion in the sector concerning the establishment of a charity ombudsman, or registrar. "It's not the case that there's no regulation, it's there already - but the advantage of a registrar is that he or she would pull it together a little bit," said Mr John McCormack of the Irish Cancer Society and the Irish Charities Tax Reform Group.

The registrar would serve the public and ensure charities' compliance with all Government requirements and register the charitable bodies, he said.

The lack of a registry and legislation should not deter the public from donating to their chosen causes.

"If people want to make a donation, they're entitled to know what they're donating to and entitled to have their questions answered," says Mr Owen Keenan, chief executive of Barnado's.

Administration or fund-raising costs vary in different areas because some charities are more administration-orientated than others.

Donors hesitant to give because they are unsure where their money is going have a right to ask the charity certain questions.

1: Are you registered for tax-exempt status? If so, what is your CHY number? Charities that have applied for tax exemption as a charitable organisation are issued with this number. For example, a charity assigned the number "1234" may display it in literature as "CHY1234", or "charity number: 1234" or in a similar fashion. This number assures donors that the charity has been examined by the Revenue Commissioners. Bodies eligible for charitable tax exemption must be devoted to relief of poverty, advancement of education, advancement of religion or benefit to the community.

Revenue reviews the organisation's structure, mission, and set of rules. Once a CHY number is granted, the charity is subjected to a Revenue audit within 18 months.

2: Are you registered as a limited company? If not, do you still provide a member of the public with a copy of audited accounts upon request?

Under the law, limited companies must conduct internal and external audits and are subject to the Companies Act.

Many charities are companies limited by guarantee - under the Companies Act, they must file accounts every year in the Companies Office which are a matter of public record. There is also a statutory requirement to hire external auditors.

"The majority of the better-known charities are companies limited by guarantee with no share capital, all required to comply with the regulations of the Companies Act, filing a set of returns annually. Irish charities do not have to form a company, but if they do they bring the rigours of the Companies Act on them," said Mr McCormack.

A charity does not have to be a company to apply for tax exemption. Government departments do not insist on dealing with charities which are limited by guarantee.

3: Are you on the corporate list of charities?

If the organisation is eligible for corporate donations, Revenue has examined the workings of the charity at least twice.

Charities eligible for corporate donation have been granted tax exemption by Revenue for a period of at least three years. The organisation must be established for charitable purposes only and apply its income for charitable purposes only. Applications must submit to a stringent Revenue re-examination of the organisation before qualifying.

4: What are your procedures for handling money?

Organisations concerned with accountability will usually have a fail-safe structure in place when it comes to donations. Many charities have two or more people opening the mail or counting donations and each person must record and sign off the amount collected.

5: What percentage of donations goes towards administration, fund-raising, promotion and support?

This amount varies depending on the purpose of the charity. In general, however, most charities should keep costs below 12 per cent of a donation.

Once you have decided which charity most deserves your cash, you may want to make a donation.

Individual donations may be given in one lump sum or over time. Some charities encourage donors to donate through direct debit, meaning a specified amount is taken from the bank account each month and transferred to the charity.

Most organisations seek to establish long-term relationships with donors. Individual donors do not receive tax savings on their donations, but some charities may claim the tax back from Revenue, thereby increasing the donor's gift. Recent legislation promotes the role of corporations in charitable donations by offering a tax incentive.

As of April 6th, tax relief will be applicable on corporate donations to eligible charities. Donations are now treated as an ordinary business expense and may be deducted when determining corporation tax. Tax relief on donations is allowed on the lesser of £50,000 or 10 per cent of company profits each year. Relief applies to donations between £250 to £10,000.

Many companies have payroll schemes allowing employees to support charities. Facilities now exist so that companies may match employee donations.