1. Sheila Nordon Irish Charities Tax Research Ltd 6 th April 2009

2.  In Ireland there is no specific legal form for a Foundation  Public benefit or Philanthropic Foundations generally set up as Charities  The legal form that a charity can take is not prescribed in law – can be incorporated (company limited by guarantee), a trust, unincorporated association, co-operative etc.  Charitable status depends on having charitable purposes and being for public benefit – all purposes must be charitable and all resources applied solely for charitable purposes

3. Source of FundingAll NPOsFundraising Charities State59.8%62.2% Private Donations10.5%20.3% Fees14.6%9.5% Deposit Income8.1%3.2% Corporate Donations1.4%2.8% Membership3.2%1.1% Other2.4%0.9%

4. Deciles (tenths ) of organisations € First4-802 Second803 -1999 Third2,000 - 3,860 Fourth3,861- 7,999 Fifth8,000 - 12,999 Sixth13,000 - 20,241 Seventh20,242 - 34,999 Eight35,000 - 71,046 Ninth71,047 - 201,273 Tenth201,274 - 25,800,000  90% < €200,000 fundraised income  Top 10% includes more Philanthropic Foundations  Mean amounts fundraised by Philanthropic foundations = €4m  Philanthropic Foundations – rely on private donations

5.  Police Permits for collections from the public in public places  Cash and non-cash (non-cash = pledges of money by direct debit etc.)  Applies to charities and non-charities  Charities Act 2009 specifies conditions for public collections  Sealed boxes, name and number of Charity on the boxes and clothing of collectors

6.  Allowed if directly in support of charitable purpose (no special legal requirements except for tax exemption)  Trading Tax Exemption more restricted than charitable tax exemption  Trade must be a primary purpose OR ancillary to the primary purpose of the charity  Non primary purpose trading activity if small relative to overall trading may qualify or if only 10% of turnover of the primary trade  Charity Shops – selling donated goods

7.  Charities can set up endowments if governing instrument allows it – investment powers generally expressed as wide as possible  If powers not set out then general Trust Law applies – Ministerial list of Authorised Investments – quite wide  For charitable trusts, Commissioners of Charitable Donations and Bequests –  advice,  list of approved investments  common investment fund

8.  No specific requirement under charity law to distribute a specific amount or % of income in a specified time. No specific limit on amount of reserves  Annual Activity Reports and Financial Returns are required and Ch. Regulator can intervene if resources are not being used solely for charitable purposes. Expected to use funds for purpose and reasons required for building up reserves  Revenue authorities apply same principle  Prior Permission required from Revenue to accumulate funds over more than two years – must give adequate reasons why  Need to satisfy Regulator and Revenue that investments or assets held in trust are being applied for charitable purposes either directly or indirectly

9.  Charitable Tax Exemption for organisations established for charitable purposes only  Income Tax  Corporation Tax  Capital Gains Tax  Deposit Interest Retention Tax  Capital Acquisitions Tax  Stamp Duty  Dividend Withholding Tax  No general VAT exemption – some specific reliefs

10.  Donations of €250 or more qualify for tax relief – operates differently depending on tax status of donor  PAYE – benefit goes to charity (claim forms)  Self-assessed and Corporate donors get the benefit directly – reduce taxable income  Donation must be at arm’s length and no strings attached – can be no benefit to the donor  Applies to donations of cash and publicly quoted securities only  For donations of shares donor must choose between Income Tax relief OR Capital Gains Tax relief, can’t have both  10% restriction for donors assoc. with charity and  Subject to general higher earner restriction on use of tax relief schemes – unused relief can be rolled over to following years