Time for charity sector to develop sustainable philanthropic initiatives

At the end of last year, the Annual Irish Not-for-Profit sector: Fundraising Performance Report noted that philanthropy had accelerated in Ireland in recent years, with philanthropy now forming a not-insignificant 0.30 per cent of Ireland’s overall GDP.

Fast forward 12 months, however, and as we approach the end of 2020, does this landscape already look drastically different? The importance of philanthropy cannot be underestimated, as it translates giving in the moment to giving that is strategic and long-term, serving to address the root causes of our biggest social problems.

Mary Gamble, director of fundraising and retail with Barnardos, says the children’s charity will need even more of this strategic funding as the Covid-19 crisis continues.

“Barnardos has always been lucky to have some wonderful donors and we have really good organisations within Ireland, with lots of trusts and foundations set up that give money to organisations,” she says.

Large gifts, legacies and private funding accounts for just 1 per cent of donations

Philanthropy typically equates to strategic long-term support. Barnardos receives multi-annual donations from certain groups and organisations, usually to fund a specific project.

“For example, someone would say they’d like to give a sum of money over a period of say three years. What that means is that the charity can plan for each year and we know we can deliver this service to X number of children with it.

“This year has been completely different because a lot of amazing donors have donated especially for this year, and we are not sure how that philanthropic landscape is going to play out next year and the year after,” Gamble says.

This not only makes planning services difficult, it adds another layer of anxiety to what is already a fraught time. Gamble says Barnardos is concerned as to how the recession will impact on the wealth of its donors, noting “they may not be in a position to donate as they usually are”. Her concern also applies to the large businesses and corporations which have supported the charity over the years.

“They gave money for Covid-related costs but we still need to cover our core services that we provide to children, we need to keep the buildings warm, the lights on and the doors open.”

Children’s hospice

It’s a similar story for LauraLynn, Ireland’s only children’s hospice. It relies almost wholly on donations to provide vital services to the families of children with life-limiting conditions. Head of fundraising Sarah Meagher admits fundraising opportunities were “severely curtailed” this year, but online initiatives have worked well.

At the outset of the pandemic, the charity had envisaged a “dramatic decrease” in its donations for 2020 but Meagher echoes the experience of others in the charity sector when she says LauraLynn’s supporters were more generous than ever.

“We have been very fortunate with the generosity of our supporters in response to our various appeals and challenges. However, we are concerned about the impact of Covid-19 on our ability to raise funds in 2021 and beyond.”

According to Denise Charlton, chief executive of the Community Foundation for Ireland, the current crisis may have galvanised community spirit but she also says that philanthropy in Ireland remains largely untapped.

“Challenging times bring out the best in people. We see that every day at the Community Foundation for Ireland, from frontline groups and from the generous donors who have their back,” she says.

“We will see support provided in 2020 exceed €15 million. We have kept Meals On Wheels going, provided lifelines to young people, older people and those with disabilities and moved entire communities online.”

But despite these significant achievements, philanthropy in Ireland is not being maximised. With the right Government policies in place, much more could be done, says Charlton.

“Recent research tells us that in this country large gifts, legacies and private funding accounts for just 1 per cent of donations; in New Zealand that figure is over 33 per cent.”

According to Charlton, new and imaginative approaches could see organisations like the Community Foundation partnering with Government for match-funding initiatives to deliver a much bigger impact for communities. “We have already seen this work with the success of RTÉ Does Comic Relief, which brought together TV viewers, our donors and Government to raise €6 million,” she explains.

For Ireland’s charity sector to survive and thrive, the Government needs to work with charities on sustainable philanthropic initiatives, Charlton says. “Over the past 12 months we have seen Ireland at its very best. Generosity has been huge. Yet every time we offer grants, the reality is demand far outstrips the funding on offer. We want the Government to pave the way to encourage and nurture philanthropy, which will deliver strategic, sustainable and long-term solutions to the many challenges communities face.”