Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I am pleased to be here today to provide my Seanad colleagues with an update on the progress of the recommendations of the report of the Forum on Philanthropy and Fund-raising, and to outline the impact of the departure of key philanthropic organisations. I thank Senator Mac Conghail and his colleagues for this opportunity and assure him that the views that he expressed here today are being taken on board by the forum on philanthropy under the chairmanship of Mr. Frank Flannery.

Charity organisations play an important role in our society and there is no community in Ireland that has not been enriched in some way by these organisations.

I re-convened the forum on philanthropy in May 2011, after some time of dormancy, to advance understanding, promote dialogue and inform the policy agenda on philanthropy and fund-raising, and the forum reported in May 2012. In implementing the recommendations of the forum, we have the opportunity to substantially increase the level of private sector investment in the sector by creating a favourable environment for individual and corporate philanthropy in Ireland, and developing fund-raising capacity. Increasing investment in the sector in the future, in partnership between the State and the philanthropic sector, will generate increased employment, build social capital and support the Government's agenda on national reform and national renewal.

By growing the sector, a vital contribution will be made to Ireland's economic recovery. It will also play a significant social role in all the communities by providing support and assistance to citizens some of whom are living in disadvantaged circumstances. This will also help improve education outcomes for disadvantaged children, provide additional health care facilities and care of the aged which will supplement, rather than replace, the existing State supports in all these areas.

The forum has set out an ambitious target to increase philanthropic giving by 10% year on year in Ireland, from its current level of approximately ¤500 million per annum to ¤800 million by 2016. The drivers for this increase in giving fall under four overarching themes: a national giving campaign, fiscal and infrastructure recommendations, building fundraising capacity and a social innovation fund.

A national giving campaign is planned for two years with the objective of increasing private giving, in particular, planned giving, by 10% year on year to 2016. It will do this through raising awareness and understanding of the value of philanthropy and planned giving among all sections of Irish society, high net-worth individuals, business and the general public, by demonstrating the contribution of the charity sector to improving Irish society and the development of community in Ireland. Research already carried out clearly shows a willingness on behalf of the Irish people to continue to give to charity.

Atlantic Philanthropies and the One Foundation have had a profound effect in Ireland - on education, research, services for the elderly and the lives of young children, to name just a few. That is why the Government has decided to invest in a national giving campaign to be launched in the middle of this year. It will be led by philanthropic organisations but strongly endorsed by Government. It is envisaged that charities will be encouraged to launch their own campaigns under the umbrella of the giving campaign.

I am providing funding of approximately ¤1.9 million over a three-year period on the basis that it is matched by Philanthropy Ireland with funding from philanthropic sources. This will be used to provide support for the infrastructure sub-group and the initial set-up costs of the social innovation fund.

In 2012, my colleague, the Minister for Arts, Heritage and the Gaeltacht, Deputy Deenihan, announced the Philanthropic Leverage Initiative which was designed to encourage philanthropic sponsorship and endowment of the arts from private sources. The initiative, established with funding of ¤230,000 for 2012, has provided an incentive to arts organisations to be proactive in seeking new funding relationships with sponsors to deliver private sector financial support, thereby increasing the overall funding available to the arts. The Department of Arts, Heritage and the Gaeltacht recently announced details of a 2013 philanthropy scheme. In a new departure for the initiative, this year the majority of the philanthropy initiative funding will be directed towards arts and culture organisations that are looking for support for projects that include an education component.

The Philanthropic Leverage Initiative is run in parallel with a second initiative - the Arts Council's RAISE: Building Fundraising Capacity pilot initiative. This initiative provides one-to-one professional support to eight selected organisations for two years through planning and implementing a tailored fundraising programme. In developing this complementary programme, the Arts Council has identified that it is vital for arts groups to develop, agree and implement an effective fundraising strategy and to properly resource that fundraising function.

I wish to advise Senator Mac Conghail that the Department is represented on the forum and an active participant. Most Departments are represented on the forum, which gives some element of joined-up thinking.

On fiscal and infrastructure recommendations, the forum also recommends the introduction of measures to promote the creation of structured vehicles for major gifts. This follows the example of other developed economies with mature infrastructures for giving through grant-making charitable trusts, foundations and donor-advised funds.

Public consultation on decoupling and simplification of tax relief for charities and donors has been completed. A working group consisting of officials from the Department of Finance and the charities sector prepared proposals for the December budget, which were accepted by the Minister for Finance and are now incorporated in the Finance Act. These proposals will simplify the tax relief scheme on donations and will result in a number of changes.

One of the main changes that will result is that donations from PAYE and self-assessed taxpayers will be treated the same, with the benefit of the relief in all cases going to the charity or approved body. Tax relief will be applied at a new composite rate of 31%. The tax relief scheme will no longer be subject to the restriction on tax relief to higher earners. Instead, there will be an upper limit of ¤1 million per annum on donations to charity from an individual taxpayer that will qualify for the relief. Administration of the scheme will be significantly simplified with donors having the option to sign declarations for one year or up to a maximum of five years. Renewal of the forms will not require donors to give their PPS number again, the charity may use their own identifier to renew declarations and electronic processing of tax reclaims will be introduced.

The Charities Act, enacted in 2009, which aims to enhance public trust and confidence in the charities and increase transparency in the sector, is not under my remit but under the remit of the Minister for Justice and Equality. The legislation was enacted in 2009 in order to strengthen the regulation of charities and increase their transparency and accountability to those that fund them. Recently the Department of Justice and Equality conducted a public and stakeholder consultation on plans for bringing the Charities Act into force on a phased basis.

The consultation invited views from charities, other interested stakeholders and members of the public on issues connected with the implementation of the Charities Act. These include the setting up of a charities regulatory authority, the statutory registration of charities and granting of charitable status, and the type of annual reporting that a charities regulatory authority will require from registered charities each year. The closing date for submissions was 20 March 2013. Submissions to the consultation will be published in due course by the Department of Justice and Equality. The views expressed will help to inform the phased implementation of the Charities Act.

The development of a comprehensive statutory register of charities will be a key part of the process. When the register is complete it will constitute an important source of regulatory data for those interested in the charities sector here. As such, it will contribute to efforts to enhance the transparency and accountability of all charities.

A structured national fundraising education and training programme is currently under way that will facilitate the growth of private donor income to the not-for-profit sector. I am providing specific funding of ¤400,000 over a three-year period on the basis that it is matched by Fundraising Ireland with funding from philanthropic sources in order to build fundraising capacity within the sector. A certificate in fundraising has been designed. The first class of 26 participants have completed their classes in Dublin City University and are completing an individual project as part of their course work.

There is a social innovation fund of a significant size which starts at around ¤10 million. It will support the establishment and growth of social innovations with the potential for transformative impact on critical social issues facing Ireland, including unemployment and the environment and is being developed. It is envisaged that the structures for the establishment of the social innovation fund will be in place before the end of the year. The fund will provide growth capital to Ireland's best social innovators and innovations, investing in solutions to social problems and creating jobs.

The forum's vision for the period ahead is that the role and legitimacy of the contribution of philanthropy and strategic charitable fundraising to Irish society will be reinforced, properly understood - which is not always the case - and valued. An appropriate infrastructure to facilitate philanthropy and fundraising will have been nurtured, including an efficient tax and legal frameworks that encourage giving, proactive and engaged intermediaries and wealth advisers that promote philanthropy and giving. It is important that the sector is seen to operate with integrity and trust. Philanthropy and fundraising in Ireland will be widely perceived as operating to the highest standards of transparency, probity and effectiveness. The fields of philanthropy and fundraising will be characterised by readily accessible and good quality information. That will enable progress and developments within the field to be tracked and understood over time, including appropriate international comparisons. The gradual implementation of the Charities Act can contribute to this. The implementation of the forum proposals will result in creating employment and addressing social issues in all of our communities and making a tangible difference to the lives of our people today and a better future for us all.

I do not want to cause division in the House over the issue. I thank Senator Mac Conghail for engaging with my Department to ensure that we had an opportunity to discuss in an encouraging, factual and co-operative manner the development of new schemes and opportunities and the ways we can increase the amount of money available to help people in the ways that I have identified. Philanthropy should not be seen as elitist which has often been the case in the past. Everybody's donation, no matter how large, will receive equal treatment and respect.