Fiach MacConghail (Independent) | Oireachtas source

I welcome the Minister. We appreciate the time and consideration he has given to this issue and acknowledge his support for this dialogue in the Seanad. I also acknowledge and appreciate that the Government has not proposed an amendment to the motion.

The motion links with a debate we had with the Minister's colleague, the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, a couple of weeks ago. In terms of the Seanad's role, this is an area not only fellow Senators but also the not-for-profit sector need to continue to debate and share information on. There is an element of trust we can bring to the debate. I am, therefore, proud to second the motion tabled by my colleague, Senator Mary Ann O'Brien, whose work in the area of advocacy and transparency I commend. Her recently published paper on implementation of the Charities Act 2009 provides an excellent context for the challenges facing the voluntary and not-for-profit sector. I am interested in hearing the Minister's views on how this might be funded, whether he agrees with the Senator's model of funding and so on.

I welcome members of the fund-raising and development community and not-for-profit sector who are in the Visitors Gallery. If I could have charged for seats, I would have made a great deal of money. Among those in the Visitors Gallery are representatives of the National Concert Hall, The Wheel, Jack and Jill Children's Foundation, Business to Arts and so forth.

As stated by Senator Mary Ann O'Brien, we are at an interesting crossroads in the philanthropic arena. Some good policies and fund-raising leverage schemes have been developed in the Department of Arts, Heritage and the Gaeltacht. We also heard recently in the House from the Minister, Deputy Phil Hogan, about the plans in his Department to provide significant matching funding in building fund-raising capacity and establishing a €10 million social innovation fund.

Members will be aware from the Seanad debate last month that the not-for-profit, voluntary and charity sector is operating in a declining public funding environment where the cumulative effect of year-on-year decreases in funding is taking hold. In my community, the arts community, there is growing emphasis on increasing private funding by the Government but an anxiety that this should not replace State investment. It is often the case that State investment leverages private funding. Therefore, the State's commitment is the hygiene factor in encouraging donations.

With the exitingthis year of the One Foundation and in 2016 of Atlantic Philanthropies, there is an onus on the State and the not-for-profit community to strengthen the capacity to diversify income streams and look for greater investment from private sources. My business which involves selling tickets for plays is one of the few that asks for money for a product in advance of a person seeing or experiencing it, unlike chocolate. This transaction is based on trust. The patron might not like the play but will trust us to present the highest quality of acting, direction and customer service. The greatest challenge we all have in the not-for-profit sector is providing for trust and transparency. Ireland is unique on the international stage in not having a charity regulator. I know that the vast majority of charities, including the Abbey Theatre, have nothing to hide. Publishing the costs of running a not-for-profit company will only benefit that company, create transparency which, in turn, builds trust. Trust also emerges from producing evidence and facts.

We know that, according to the 2009 report of the Irish non-profit knowledge exchange, the not-for-profit sector in Ireland employs more than 100,000 people across the community, voluntary, sports and cultural sectors. We know that this includes approximately 11,700 organisations, of which 8,000 are registered charities. With a turnover of €5.75 billion, this means that the not-for-profit sector accounts for over 3.25% of national income. However, as we await an update on the progress of the Charities Act, we should be conscious that we do not have relevant, up-to-date, accurate data for giving in Ireland. Implementation of the Charities Act 2009 would provide a stream of reliable evidence on which to build better policy and evaluate outcomes. If it is not possible at this stage to implement the Act, how else can we collect evidence?

One of the current debates in the not-for-profit sector is on the cost of administration and fixed cost with regard to implementing development and fund-raising strategies. Where I might possibly differ with Senator Mary Ann O'Brien - I am not sure about this - is on the question of whether the maxim that one has to spend money to make money is absolutely true. Ms Deirdre Mortell of One Foundation spoke in the Chamber earlier this year about growth capital as the basis for fundraising. We should not be afraid of admitting or hiding the fact that we have overheads and administration costs to help to raise additional revenues. It is a tough environment for philanthropy. While I know this for a fact, I would still take the risk of ensuring growth capital is protected to leverage more capital. I believe also that when the Charities Act is implemented, we will have other interesting data such as for how many Departments are funding the same charity. It would be helpful to have that information to ensure a more holistic approach to fundraising.

I reiterate the call I made in previous debates, that the Ministers, Deputies Phil Hogan and JImmy Deenihan, come together to share resources in terms of fundraising capacity and so forth. We should not be afraid of evidence or data or the cost in this regard because of itself it will enhance our understanding of the difficult environment in which charities are operating in raising funding. Putting in place a dedicated charities regulator would help to support and enhance public trust and confidence in the sector and allow it to flourish and reach its full potential, particularly in supporting the Government policy on fundraising and philanthropy.