Ms Madeleine Delaney:

Gabhaim buíochas leis an gCathaoirleach and the Deputies for the invitation.

The Charities Regulator was established 11 years ago. There are currently 11 members of the board who are appointed by the Minister for Rural and Community Development and the Gaeltacht. We have 49 full-time members of staff. There are about 11,500 charities in Ireland. It is a diverse sector ranging from very small, volunteer-only charities to large-scale operations with significant numbers of employees. They are supported by hundreds of thousands of volunteers across Ireland, including those who take up the role of charity trustee. Additionally, our latest report on the social and economic impact of the sector estimated that there were 281,250 people employed in charities, equivalent to almost one in eight workers. The overall financial impact of the charity sector was estimated at €32.1 billion in 2022. There are 76,000 charity trustees. These are the volunteers legally responsible for the management and administration of a charity. Last week, we issued new guidance on being a trustee for existing trustees or those considering becoming a trustee, explaining their role and key responsibilities.

The guiding function of the Charities Regulator is to increase public trust and confidence in the administration and management of charities. Charities can come under the remit of several regulators and public bodies depending on the services they provide. The role of the Charities Regulator is grounded solely in the Charities Acts, in particular the Charities Act 2009. Our statutory functions include maintaining a register of charities and promoting high standards of governance and accountability in charities. We also deal with applications by charities under the Charities Acts 1961 and 1973 for services and assistance such as approving cy-près schemes, appointing new trustees and authorising the sale of charity property in circumstances where the governing document of the charity does not otherwise provide for this. These services are provided free of charge and are an alternative to applying to the High Court.

Access to information is a key component in public trust and confidence and the register of charities provides important basic information on individual charities. Once registered, charities are required to keep their information on the register up to date and to submit an annual report which provides details of finances and activities undertaken in the previous 12 months. We actively promote checking the register to help people make informed decisions before making a donation.

The year 2024 saw a 43% rise in the use of charity records on the register.

We provide extensive guidance on our website to assist charity trustees to fulfil their duties and implement good standards of governance. If issues or concerns arise with a charity, we take a proportionate approach. We engage extensively on a one-to-one basis with charities and charity trustees to resolve governance and compliance-related matters. Most engagements with charities are concluded on a voluntary basis. For example, in 2024, we received 493 new concerns. However, during that same year, we issued only nine statutory directions to provide information or to produce documentation by way of statutory request. In certain circumstances, we may appoint inspectors to investigate and report on the affairs of the charity, for example, where information and documentation to establish relevant facts are not available or forthcoming, co-operation and engagement by the charity trustees is lacking, the matter involves a complex scenario with multiple issues.

In the case of the Peter McVerry Trust, the Charities Regulator appointed inspectors on 12 October 2023 to carry out a focused investigation into governance and finance-related matters at the charity in line with our specific statutory functions. This followed a short exchange of correspondence between the Charities Regulator and the charity during August and September 2023 following receipt of an email from the charity in July 2023 advising of cash flow issues.

Prior to and during the investigation, the Charities Regulator liaised closely with the Approved Housing Bodies Regulatory Authority, which was engaging with the charity related to its activities as an approved housing body. These form part of a range of activities and services that the charity carries out to advance its stated charitable purpose. We have a memorandum of understanding in place with the Approved Housing Bodies Regulatory Authority that allows us to co-operate and share information for the purpose of informing our respective functions efficiently and effectively.

The inspectors' report was published on our website on 14 October 2024. The report details several findings that pointed to failures in charity trustee oversight and in the management and administration of the charity and its charitable assets. In their report, the inspectors highlighted instances of a lack of adequate and appropriate financial controls with which the charity's board could exercise control over the affairs of the charity. The inspectors also identified a failure to adhere to donor intention in how restricted funds were used.

Further findings relate to the process by which the charity took over other charities and whether the board considered whether the charitable purpose of the charities being taken over aligned with the charity's own charitable purpose. Many of the findings of the inspectors are captured in the report published by AHBRA following the conclusion of its investigation in December 2024. The Charities Regulator is continuing to follow up with the charity for assurances that the matters raised in the inspectors' report are properly addressed. As AHBRA is engaging extensively with the charity on these and other matters, we are not duplicating its work.

In respect of the C and AG's report into the Peter McVerry Trust, there is a specific action that fundraising will be receipted appropriately and in accordance with the requirements of the Charities Regulator. This appears to a reference to our guidance on fundraising from the public. Since the inspectors' report was published, one of the major issues we engaged with the charity's trustees on are its internal financial controls, which should include income from fundraising, as well as other sources of income and the management of restricted funds.

I am happy to take questions and to be as helpful as possible to the committee.