Ms Eilis Murray:

I wish the Chairman and members a good morning and thank them for the invitation to attend. I am joined by Ms Hennessy, who is communications lead with Philanthropy Ireland, and Mr. Traynor, CEO of Community Finance Ireland, which is a member organisation of Philanthropy Ireland. Formally established in 2004, Philanthropy Ireland is the independent organisation providing a collective voice for philanthropy in Ireland. Our purpose is to advance knowledge, understanding and practice of philanthropy for social benefit. We do this by engaging in three key pillars of activity, namely, promotion of the concept and value of philanthropy, policy input to support the development of an enabling environment for philanthropy and practice building capability in support of best practice in grant making. Philanthropy Ireland’s over 50 members provide grants and investment funding to a broad spectrum of over 5,000 causes and initiatives in Ireland and overseas. In doing so, they make a significant contribution to Irish and global society.

Quite simply, philanthropy is private giving for public benefit. It is a form of giving, usually in the form of grants or donations of money, that seeks to be planned, thoughtful and intentional in approach, taking account of those delivering social change and the communities they serve. It is generally done by families, individuals, companies, or a combination of all via private, corporate and community foundations, family trusts and philanthropic intermediary organisations. It is collaborative in nature and works in partnership with stakeholders, including communities, the Government, or both.

There is no single measure that captures the scale and scope of philanthropy in Ireland. We know almost €80 million was disbursed by philanthropic institutions in 2020, an increase of over 20% on the 2019 figure. However, as much individual philanthropy in Ireland is done privately it is fair to assume this is an underestimation. Social services, education and research, health, and environment are causes receiving most funding. The publication in June of a draft national policy for philanthropy by the Minister of State, Deputy Joe O’Brien, is a significant and very welcome development. We congratulate the Minister of State and his departmental team on taking this step. We understand submissions are under consideration by the Department to inform a final draft for adoption by Government before year end. Why is this important? Philanthropy is underdeveloped in Ireland. Ireland lags significantly by comparison with other countries when it comes to the number of active grant-making trusts, which is estimated at 30 times lower than the European average. For example, community projects in the UK have access to 8,000 grant-making trusts, whereas we have fewer than 100 active grant-making trusts. Giving by way of legacies and bequests in Ireland, which is another source of philanthropic giving, is modest. 2023 research by Community Foundation Ireland identifies legacies and bequests are increasing by up to 17% per annum, albeit from a low base. With an estimated intergenerational wealth exchange of €9 billion annually, the same research identifies that benefits from legacies for communities could double to over €300 million with increased awareness and incentives. We know, therefore, that there is capacity to grow philanthropy and through this to benefit more communities. Policy provides a framework for action for philanthropists, beneficiaries, and the Government to work more collaboratively and effectively and put in place an environment to encourage planned giving.

As a form of independent funding, philanthropy can support innovation, test models of intervention and take risks. For example, the DCU Exoskeleton Programme aims to provide individuals with access to cutting edge Ekso Bionics technology to address mobility issues. Equally, philanthropy can support initiatives in communities that might not otherwise receive attention. A particular example is MyMind. Mental health is a key issue. MyMind is a unique movement for community-based mental health services. It works towards giving every person in Ireland equal access to mental health support early, affordably directly and without stigma or delay.

It is important to note that philanthropy is not seen as a replacement for public service provision, nor should it diminish existing Government funding levels. It seeks to complement and align with other sources of finance available to communities. This includes bridging finance services, which are mostly used by community organisations to unlock the retrospective nature of many statutory grants such as those from the sports capital programme, LEADER programme and the Sustainable Energy Association of Ireland, to name but a few. Such loans have proved vital for many community projects to get started. In many cases bridging loans follow grants to organisations that may have no sustainable income streams. With this in mind, and thanks to the WDC and Community Finance Ireland, volunteer-led groups no longer need to pay arrangement fees to access bridging finance across the State. While bridging finance is deemed a necessary tool to allow voluntary bodies access many grant supports, there are ways in which this process can be improved. These include standardising the mandating of all State grants directly to the lender where a bridging facility is required by a voluntary-led group and ensure all State-funded grant programmes, where appropriate, clearly highlight the fact the support is retrospective in nature.

While there is a real opportunity to advance philanthropy in Ireland for public benefit, it will not just happen without a policy framework. To successfully engage people in philanthropy we need to raise awareness, create understanding and proactively stimulate engagement. To achieve this, we invite the committee to assist by supporting the adoption of the national philanthropy policy by the Government, thereby acknowledging the role of philanthropy in support of civil society and local communities and providing an enabling environment, supporting our proposal for a White Paper to review fiscal measures that could support the growth of philanthropy. Recent independent research commissioned by Philanthropy Ireland indicates 66% of those aged 55 and over agree that the tax system should include incentives for individuals who give to charity, with 18% saying they do not know. A White Paper can identify the right fiscal measures to stimulate greater and more sustained giving in Ireland. Again, I thank the committee for this engagement. My colleagues and I would be happy to answer any questions members may have.