Charitable Fundraising in an Economic Downturn The first annual report on income and fundraising activity in Irish charities Geraldine Prizeman and Siobhán McGee 28 th May 2009 Irish Charities Tax Research

Introduction o Irish Charities Tax Research and The Ireland Funds have collaborated with the Centre for Nonprofit Management Trinity College to conduct this research. o The purpose of the research was to: ascertain organisations’ income base determine the reliance on different fundraising methods; and identify how organisations were adjusting their fundraising planning.

Methodology o A total of 267 organisations took part by completing a detailed online survey. o The survey was launched on 3rd February 2009 and remained active until 16th February o Responses were received from CEOs, Financial Controllers, Fundraising Managers, Directors, Managers/Co- ordinators, Chairpersons, Treasurers and Secretaries.

About the Organisations – General  Over half of the responding organisations were based in Dublin (55.1%).  Over one third of organisations (35.2%) operated locally while four in ten organisations (42.7%) stated that they operated at a national level.  Approximately half operated in one of three main fields of activity, namely health (18.7%), development and housing (16.5%) and social services (15.4%). (See full classification breakdown on p.12)

About the Organisations - Volunteers  Two thirds of organisations (67% or N=179) were volunteer-involving organisations.  Almost half (46.4%) of those who had volunteers working in their organisation stated that the number of volunteers had increased in the past two years.  Four in ten organisations with volunteers (43.6%) stated that they expected the number of volunteers to increase in  Two thirds of volunteer-involving organisations (66.5%) stated that volunteers were involved in fundraising.

About the Organisations – Paid Staff  The majority (81.3%) employed paid staff.  Four in ten (44.2%) had five or less paid employees.  A small number of organisations (22.8%) employed paid fundraising staff, that is, staff whose main role in the organisation was fundraising.  Larger organisations were more likely to employ fundraising staff.  Almost two thirds (62.2%) of organisations expected the number of paid staff in their organisation to remain the same in 2009.

Demand and Overall Income o Almost three quarters of organisations (74.9%) believed the demand for their services would increase this year. o Almost two thirds (64%) of responding organisations expected a decrease in overall income this year. o Some organisations (14.2%) indicated that they expected their total income to increase in o A similar percentage (15.8%) believed that their income would remain the same.

Changes in Overall Income

Expected Changes in Income – State Income

Expected Changes in Income – Private Donations

Expected Changes in Income – Corporate Donations

Fundraising Activity

Expected Changes in Fundraising Activity - 1

Expected Changes in Fundraising Activity - II

Expected Changes in Fundraising Income - I

Expected Changes in Fundraising Income - II

Potential Threats o The majority (85.1%) of responding organisations stated that they believed their organisations were threatened by the economic downturn. o Key areas included: o the increase in demand for services; o the expected large decrease in statutory funding; o the expected decrease in corporate and private funding; and o the possibility that organisations could downsize or cease to exist.

Potential Opportunities o Almost half (46.3%) stated that they believed that opportunities could arise during the current economic climate. o Key areas include: o Reduced costs for the sector; o Renewed interest in certain fields of activity; o Generate awareness of organisations working on social issues; o Source new volunteers and bring new skills into the sector; and o Potential development of organisations in the sector.

Comment and Reflection  Apprehension about organisation’s ability to continue to deliver quality services in the future.  Uncovers the fragile nature of the relationship between donors and organisations.  Adequacy of the response at this time?  Need for Government policy to create a more enabling environment for philanthropy and volunteering.

What does this mean? “…make the community spirit stronger ….take away the ‘re’ and you’re left with what we all need right now a good “cession””!

What can be done?  Become more creative – new ways to deal with increased demand and declining income  Need to adopt a more strategic approach to targeting donors and engaging in ‘consciousness raising’.  Business needs to consider their charitable and CSR commitments differently.  Articulating a sectoral response to the economic downturn.

Significance of the Research o Research like this is essential as it enables charities to engage in strategic long-term thinking and planning. o Research helps to build a better understanding of the charities sector, its contribution and the challenges it faces. o Need to conduct similar research on an annual basis to monitor trends in income and fundraising activity in Irish Charities during the current economic climate.

Charitable Fundraising in an Economic Downturn The first annual report on income and fundraising activity in Irish charities Geraldine Prizeman and Siobhán McGee 28 th May 2009 Irish Charities Tax Research