Jimmy Deenihan (Kerry North, Fine Gael)

I wish to share my time with Deputy Catherine Byrne.

It is obvious that many Deputies have a particular interest in this Bill. I am sure this is because, like me, they give much to charity, as well as spending a large portion of their time fundraising. Consequently they have a deep knowledge of what it means to be a giver of both time and money. They have first-hand knowledge and information on the issue of charitable donations, of giving and taking and the importance of doing it properly in a transparentfashion.

Undoubtedly, Irish charity law is in urgent need of modernisation. As previous speakers have noted, more than 40 years have elapsed since legislation pertaining to charities was passed in this House — I refer to the Charities Act 1961. Charity legislation has not kept pace with societal changes in the manner in which money is given or taken or in how fundraising is transacted, be it on the high street, privately or whatever. I compliment the Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Deputy Pat Carey, who is a fellow Kerry man, on introducing this legislation. While the Bill's preparation was almost complete when he took office, his capable hands are now steering it through the Oireachtas.

The charities sector is completely unregulated at present. This means no single body has the specific aim of supervising the sector or has the statutory powers to either maintain a register of charities or to subject the sector to regulatory scrutiny. Therefore, there is no such entity as a registered charity in Ireland at present. There is no statutory definition of what constitutes a charity and no reliable information on the number of active charities, their financial worth or how they spend their funds.

Ireland is an extremely charitable country. One should consider the response to the tsunami appeal some years ago, which brought out the best in Irish people. Although the disaster took place many miles away, Irish people reacted generously to it, probably to a greater degree than any other nation of comparable size globally. This House organised a soccer game against the FAI at the time, for which Members sought and received little recognition. I recall writing to every Member and they all responded positively. Together with the FAI, Members presented a cheque for more than €100,000. This simply demonstrates people's generosity towards a cause with which they can identify.

While many statistics are available, Members lack good information. One statistic suggests that almost 90% of the population donates to charity every year in the form of church charities, community or sporting organisations or whatever. I find this figure credible because, as I noted, Irish people are highly generous. This legislation is important because to an increasing extent people are asking questions about their donations and the manner in which they are spent. I have observed people questioning fundraisers on the street as to the charity's purpose, the manner in which donations are spent, how much the collectors are paid and even how much the collectors' boss is paid. People also ask questions about the proportion of money that reaches its intended target. This is a highly significant issue and some statistics suggest a breakdown of one third to the fundraiser, one third to the organisation's administrative structure and one third to the intended target. While these are general figures, people want access to such information, which simply is unavailable at present.

A major issue has arisen in respect of overheads, marketing, the use of professional fundraisers and the use of consultants to get across a message to induce people to give more money. The entire fundraising sector has become highly professional. I repeat that the Minister of State's efforts, which Members are trying to support, are important because they enable the generous donor on the street to have confidence that what he or she is giving will be beneficial to the intended recipient. Given the lack of regulation, public trust in charities is beginning to suffer. We are very generous at the moment, but people are beginning to ask questions.

Organisations with which I have been involved have benefited in the past from the Ireland Fund — although that is a different issue — but even Americans, who have been generous in giving to this country in so many ways, are becoming donation-weary. They are beginning to question where their money is going. That is also reflected on the streets. I am not saying that Irish people have stopped giving money, but they are asking more questions. I hope that donation fatigue will not set in. However, this could happen if the Minister does not take the required action, especially if there is a tightening up of the economy. If people have less disposable income in their pockets they will ask questions about donating. They may ring-fence a certain amount of their incomes every year for charity, perhaps giving to just one charity rather than spreading it around.

As has been mentioned by a number of speakers, people are becoming fed up with being accosted on the street and asked for charitable donations. There may be two or three fundraising initiatives going on in a town at the same time so that people are accosted on every corner. Older people in particular, who do not like to say no, feel intimidated by this at times. The Bill sets out conditions under which fundraising can take place, which is very welcome. However, people, especially old people, should not feel intimidated or pressurised into giving something. At times, charity collectors can be in people's faces. That should not be allowed either. People in provincial towns are being asked by others they do not know to contribute to charities they cannot identify with. This must certainly be addressed.

As I mentioned, there is no regulation in this area at the moment. The number of charities in the State, as has been mentioned, is roughly 7,500. These are not subject to any regulation apart from company law. In the past, major charities have been affected by fraud and other scandals. This has had an impact on their incomes. If an organisation is tarnished in some way, people give less or they stop giving to that organisation. According to the newspapers, charities have accepted that the regulations being introduced are for their benefit. They will help them to get their houses in order and to ensure transparency, as mentioned by many speakers. They will also help them to ensure that proper accounting systems are in place, keep track of their sources of money and ensure that they can identify and take responsibility for the people collecting on their behalf on the ground.

Is there any type of qualification for fundraising? For example, can somebody with a criminal record engage in fundraising activities? I have looked at the Bill in a cursory fashion, but I do not know whether this is mentioned. Does the Bill contain any provisions relating to the previous history of a person collecting for charity and whether he or she has a criminal record? Is there any reference to qualifying requirements in terms of character? Does a person need to obtain clearance from a local Garda superintendent or similar? The Minister might refer to this in his reply.

As I pointed out, it is vital that public trust and confidence in the charity sector be maintained and increased. This is because most charities now rely heavily for their survival and growth on generating income from their activities. In addition, they need to be able to rely on the services of volunteers. I saw a figure somewhere that there are approximately 700 professional fundraisers in Ireland. However, thousands of people are out there collecting money on a voluntary basis. The larger charitable organisations could lose volunteers if they are not confident that the organisation is operating properly.

According to a survey carried out by the Centre for Nonprofit Management at Trinity College Dublin — it may not be totally accurate, but it is the only information available — it is estimated that the charitable sector collects about €2.5 billion every year, €500 million of which is from direct fundraising. A total of 60% of the income of charitable organisations comes directly from the State, but fundraising constitutes a critical portion of their income. In addition, the survey makes the interesting point that in 2003, fewer than 10% of charities earned an average income of more than €738,000 per annum, even though the list includes large charities such as Oxfam, Concern, UNICEF, the Society of St. Vincent de Paul, and the Irish Heart Foundation. Thus, very few have massive incomes. A total of 50% of charitable organisations had an income of €40,000 or less. There is a large number of smaller organisations. The Minister has made provision in the Bill that any organisation with an income of less then €100,000 does not need to produce audited accounts, although they must produce reports and accounts. I welcome this provision as a requirement for audited accounts would result in too much bureaucracy.

There is one issue I would like to bring to the Minister's attention. Among those collecting for charities, many are collecting for charities that are not registered. These people need to obtain a permit from the local Garda superintendent. However, there should be some form of regulation for this. People who have obtained such permits should be obliged to return to the superintendent with an account of what they collected. In addition, contributions of more than €10, for example, should be recorded and a list of the people who gave more than that amount should be kept. In this way, if the Garda later needs to check on a collector about whom doubts have been cast, it can check whether the money reached the desired source.

I have mentioned codes of practice relating to methods of fundraising. For example, people should not be allowed to intimidate others and collection boxes should be sealed properly. Without wishing to encourage over-regulation, I suggest that if a major fundraising drive is taking place in a town the Garda should first check the boxes and make sure they are properly sealed and afterwards check whether the boxes are still sealed before they are passed on, as is done with ballot boxes during elections. In addition, the seals on the boxes should be tamper-proof.

We all get notices through our letter boxes about clothing collections. People are giving up good quality clothes such as those which young kids have grown out of and which could be expensive, or designer wear. They are giving them to people who are apparently making considerable money by exporting them. It is important that this area is regulated as well because there is a fortune to made in it and there is a national network in operation because it is highly profitable. The Minister of State might refer to how he will regulate that area.

As a fundraiser and a donor, I am delighted to have the opportunity to say few words on this Bill. I thank the Minister of State for bringing it forward. It can only do good for the charitable sector.

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