Feargal Quinn (Independent) | Oireachtas source

The Minister of State, Deputy Jan O'Sullivan, is very welcome. It is a very good day for the Seanad when Senator Mary Ann O'Brien and the Independent Group put down a motion to which the Minister responds. We are so used to motions coming in here and the Government putting in an amendment disagreeing entirely with it. It is delightful to see this and I congratulate the Independent Group and Senator Mary Ann O'Brien for doing this. One of the frustrations we have in everything we do here is the length of time it takes to get things done. Senator Whelan touched on the fact that it was in 2009 that the Charities Act was passed here, and yet we have not really got around to doing what needs to be done. We can and should do it immediately. The Minister's heart is in the right place so I am sure it will happen this time, but let us ensure it happens with speed.

I am glad to contribute to this motion and I will briefly mention a topic relating to the more efficient regulation of the not-for-profit sector with regard to philanthropy, fund-raising, sponsorship and private giving in Ireland. By doing so we could really increase the amount of revenue charities can raise. I also agree we should put in place a charities regulator. I am delighted to see the Minister intends to move on that but it is taking a long time. The fact that Ireland is almost unique in that it does not have a regulator for charities is indicative of the work the Seanad can do. We can draw attention to such areas. A charity register is also a good idea. I like the description on the UK Charities Commission website which states:

The (UK) register of charities shows key facts about the work and finances of every charity. You can see at a glance whether a charity is up-to-date with its reports and its accounts.

That information is good for the customer, and by customer I mean those who contribute to the charity as well as those who receive from the charity. We need a similar system here. Transparency in charities can help increase much-needed revenue that has been falling, particularly since the crisis.

Given that the State gives so much money to these charities there needs to be much more impetus on the side of Government Departments to audit the accounts of charities. This would also look at charities from a business-oriented perspective to analyse their efficiency in reaching their targets. We need to know the impact - it is a great word - of a charity's work. We need to look at a charity's work more like the way we look at a business in the private sector and how a business would measure itself. At the same time, the private sector and the non-profit sector can also play a role in making charities more transparent and efficient.

The situation in other countries is very much worth noting and the Internet is also widely used to better inform the consumer, meaning those who contribute to the charity as well as those who receive from it. In the US there are websites such as the one by the non-profit organization, Charity Navigator. It is a very interesting website which evaluates US charities, rating them on a zero to four scale. Could we have a similar system operating here? It really provides an in-depth analysis to the customer - the person who is donating. This kind of charity rating is very worthwhile.

In terms of overall salaries - and we have touched on this a little here - of CEOs of charities, there is more murkiness. In particular, there was a report last year that four charities that share millions of euro in State funding every year have refused to reveal how much their chief executives are paid. While more transparency will hopefully mean more donations in the long term, some charities simply have to get away from the murkiness that surrounds them. It is in their own interests to do it. The press, others and we here can help by spotlighting those charities.

I would also briefly like to mention the topic of crowd-funding related to charities. Linked Finance, an organisation in which I must state my involvement, aims to crowd fund SMEs and larger businesses. There are other charity crowd-funding websites in Ireland. This is the future but I think the Government needs perhaps to examine the area more to ensure the right conditions are being set, in that consumers have the knowledge and confidence to invest in certain worthy projects. By introducing some safeguards, the Government can allow the sector to grow which is what it should be doing.

Unfortunately, and to generalise, sometimes older politicians overlook such developments, as it is in their nature, but I guarantee legislation will be introduced on this matter, as has been done in the US and the UK already. I hope we do not do it five or ten years late and then pat ourselves on the back. As much as many Senators and Deputies would not like to hear this, we could do a lot worse than following UK legislation much more closely instead of pretending we were the first to do something. The opposite is often true. Consider the fact that the US passed the Jumpstart Our Business Startups Act 2012, known as the JOBS Act, last year, which made equity-based crowd funding legal. Its effect was to ease entrepreneurs' access to capital via the Internet. The US believes this could raise hundreds of millions of dollars and create thousands of businesses. What if we were to do something similar in Ireland? This would be an example of community ownership.

I have raised previously the example of DonorsChoose.org, a website that allows people to give to projects in American schools. We recognise the significant amount of philanthropy that takes place in America because they have made it easy to do so. However, we have made it difficult here in recent times. We must take steps now to encourage more philanthropy.

I am delighted this motion was tabled and even more delighted that it was responded to by the Minister. I wish the Independent Group and Senator Mary Ann O'Brien every success in this area. I believe the Minister will respond to the motion and I urge that this happen immediately.