Public concerned by transparency and use of donations in charities, study by regulator finds

Senior staff salaries and a lack of transparency on how money is used are among the public’s main concerns regarding the operation of thousands of charities in Ireland, a new survey has found.

According to the Charities Regulator, which published data on Tuesday, the number of people who donate cash dropped during the last year but, conversely, the amount given by individuals increased.

While the financial picture looks healthy for the more than 11,500 registered charities operating in the country, its research on attitudes towards the sector shows strong backing for greater regulation.

“Almost four in 10 adults are very concerned that regulation is not having any effect,” the report found.

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“There is a view that existing regulation may not be tough enough as there is no evidence of the consequences for non-compliant charities. In addition, regulation has not fully stopped fraudulent activities, which may be why there is strong support for greater enforcement, more checks, and tighter controls by the regulator.”

The survey was conducted by Amárach Research, with a representative online sample of 2,000 adults.

It found nine out of 10 gave some form of donation to a charity over the last year, although the number who made financial contributions fell from 74 per cent to 59 per cent in 2020. The numbers donating goods increased from 43 per cent to 57 per cent.

Those who gave money were least likely to support organisations in the areas of the arts and environment or conservation (6 and 9 per cent of donors respectively). Those that enjoyed the higher levels of support were in medical and health related areas (44 per cent), homeless or refuge services (43 per cent), local community organisations (41 per cent), children or youth services (29 per cent) and animal rescue or welfare (29 per cent).

Trust and confidence is becoming ever more important – 80 per cent of donors in the last year cited this compared with 65 per cent in 2020. Small local charities generate the highest level of trust.

“The general public want to know how their donations are used, and to see evidence of what has been achieved by the particular charity that they have donated to,” said Helen Martin, chief executive of the Charities Regulator.

“Providing clear details on these two areas would create improved levels of trust and confidence amongst 90 per cent of the population.”

More than half (56 per cent) of those who donated money did so regularly, at least six times in the past year. The purchase of raffle and lottery tickets was the most common form of financial contribution.

Average amounts also increased last year compared with 2020, rising from €169 to €155. But charities are becoming more dependent on those over the age of 55s, who donate the largest sums of money.

The Charities Regulator said it has adopted a stricter approach to enforcing compliance with the obligation to file an annual report within 10 months of the end of a financial year and is implementing a targeted compliance programme.