Charity fundraising up 24% last year despite recession

IRISH CHARITIES are managing to increase fundraising despite the recession, according to a new study published yesterday. However, the improvement is not evenly spread with larger charities, especially those in the international development and health sectors, doing better than others.

Overall, there was a 24 per cent increase in the amount raised in 2010, compared to the previous year, according to the Second Annual Report on Fundraising in Ireland, compiled from data in accounts filed by not for profit groups at the Companies Office.

The figures in the survey, carried out by not for profit sector consultancy 2into3, relate to 171 groups. The author acknowledges that the survey sample is not statistically representative of the more than 9,000 groups in the not for profit sector in Ireland, but simply provides a snapshot of fundraising.

The report shows that organisations spent an average of 15.4 cent in fundraising costs for every euro raised. Stripping out two large international development groups, this figure almost doubles to 29.9 cent per €1 raised.

Of the money raised, according to the report, 17.5 per cent subsequently goes in salaries to charity staff. Again, this figures rises significantly – to 31.3 per cent – when the two large international aid groups are excluded.

Despite the reported increase in fundraising, the charities’ accounts show a squeeze on resources, with the gap between income and expenditure narrowing sharply over the past two years, except for international aid groups.

The State remains a key source of income for the sector, accounting for 34 per cent of total income, down slightly on 2009.

“The data presents a challenge for many charitable organisations, as the recovery is not uniform and is led by increased donations to a relatively small number of organisations,” said Dennis O’Connor, director of 2into3.

“The international development and health sectors dominate in terms of fundraising performance with increased donations of 30 per cent. Donations to organisations providing a range of services to domestic clients increased by a much smaller amount in the order of 5 per cent.”

The author of the study, Sinéad Kelleher, said the Haiti earthquake was a major factor in the increase in funding for international development groups.