Irish rank below US and UK in donations

THOUGH THE Irish see themselves as a nation of givers, the percentage of their disposable income they give to charity ranks below the US, the UK and many other European countries, a new report has found.

Philanthropy in the Republic of Ireland, by consultants McKinsey Company, found levels of giving in Ireland have not kept pace with the country's wealth.

The report, to be launched today by Minister for Community, Equality Gaeltacht Affairs Pat Carey, has found while only one in 10 Irish people do not give to charity, giving tends to be unplanned and donations tend to be quite small.

“Rising disposable income levels in Ireland have not translated proportionally into rising levels of charitable giving,” the report said.

It also said ultra-wealthy Irish families are not engaging in philanthropy at a level that reflects their means. And it said the Irish foundation sector is underdeveloped and its long-term future is uncertain.

There are only 30 active grant-making foundations in Ireland compared to more than 8,000 in the UK. Ireland lags far behind the European average of 20 foundations per 100,000 people with only 0.7 per 100,000.

Three of the country’s largest limited life foundations are also due to close by 2016 and, unless they are replaced, Ireland faces a considerable decrease in foundation giving.

Corporate philanthropy is also very low, the report said, especially by large Irish companies.

Some 25,000 non-profit organisations exist in Ireland offering ample opportunities for philanthropic investment. They largely depend on Government funding, which is diminishing, the report said. It had dropped from 75 per cent in 1995 to 59 per cent in 2005 and is likely to decrease further.

The report suggested collaboration or consolidation of some of the charities would enable the sector to work more effectively and efficiently.

It also said tax incentives for philanthropy are complicated and not widely used. Unrestricted and less complex tax incentives could encourage active philanthropists to donate more while keeping their net contribution constant, it said.

The report also found that public perception and media coverage is sceptical of large-scale philanthropic engagement by wealthy people. Donors are under suspicion of gaining additional tax-breaks or other benefits from charitable donations.

“In the Irish debate about the social sector there seems to be no clear understanding of the role of philanthropy in a social democracy,” the report said.

It called for a fact-based debate about increasing social needs and the potential contribution of philanthropy. It also said attention should be drawn to the good work performed by Irish philanthropists to inspire other wealthy individuals to invest.

In response to the report, the Government has launched a plan to support philanthropy in Ireland. This includes introducing a Charities Regulatory Authority, as promised in the Charities Act 2009.

The Government will keep tax relief on donations under review.