Charities should merge to cut costs, suggests Fine Gael MEP

LEADING CHARITIES should join forces to reduce overheads and increase overall aid effectiveness, Fine Gael MEP Seán Kelly has said.

Repeating a call he made in the past, he said “pooling resources in an Irish charitable alliance could substantially reduce administration and advertising fees. It would also bring some of our brightest minds together for the achievement of their common goal – helping others in need.”

He noted figures in recent annual reports for three leading charities which he said “provide an example of how donations can lessen in value when spread across several charities, each with individual running costs”.

He said: “Trócaire’s total incoming resources for the year ending February 2011 amounted to €63 million. Out of that, direct charitable expenditure was €45.5 million, with governance costing €439,000.” Concern’s total incoming resources for 2010 “amounted to over €167 million, with charitable activities totalling €138.5 million for that year and governance listed at €796,000”.

In 2009, “Goal gathered almost €67 million incoming resources and spent €57 million on its charitable work, allocating €174,514 to governance of the organisation.”

He continued that “in these strained financial times, we must question the effectiveness of charities to ensure donations are delivered to those who so badly need [them].” He also queried the need for so many such organisations.

“The number of Irish charities focusing on overseas work has grown considerably and, I believe, possibly to the detriment of the sector. Perhaps a merger of these groups would ease the administrative burden on resources and bring improved results,” he said.

Acknowledging that Irish charities “are highly regarded worldwide”, he said he was “proud to have worked with and supported many of their campaigns”.