Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy will be aware, my Department previously provided grant funding to Benefacts between the period 2015-2022. The project was funded as a pathfinder initiative in the area of data analytics on the non-profit sector. Benefacts was initially co-funded with philanthropy, however, in latter years the Department had been providing the majority of funding to the entity.

In 2019, my Department commissioned an independent report to provide analysis of the market for data on the non-profit sector. This report examined, inter alia, issues around the demand for the data concerned; methodologies and technologies used; the potential for direct provision by the State of these services itself, and; the maturity of the market to provide these services efficiently. On foot of this report, a review was undertaken in 2020 which found that the business case for the continued funding of Benefacts by this Department was no longer justified and accordingly the decision was made to terminate funding.

Recognising that other public service bodies with direct policy involvement in the not-for-profit sector may have wished to consider whether they had an appreciable business case to continue funding Benefacts, my Department agreed to fund the initiative up to the end of 2021. This provision was made to facilitate relevant public service bodies to consider their position and to assess all options in relation to their respective business needs concerning data on the not-for-profit sector.

In April 2021, my Department reaffirmed its 2020 decision to the parties concerned. Furthermore, in acknowledgment of the impact of Covid19 on this deliberative process, the Department sanctioned a final three month extension of funding to Benefacts up to the 31st March 2022. Despite affording a total period of approximately 20 months' notice so as to allow the identification of another primary funder, no alternative funding source was identified from public service bodies that used Benefacts.

The factors influencing the original decision to terminate funding have not changed materially and, consequently, my Department has no plans to reinstate funding for Benefacts.