Support for the Infrastructure of Regulation should be included in Budget 2025

On Wednesday 10 July, the Irish charity and voluntary sector welcomed the introduction of the Charities (Amendment) Act 2024. This Act sets out to improve transparency and accountability, and to strengthen public trust in charities. It does this by introducing a series of reforms to how charities are governed that, if adequately resourced, will create a more robust framework for the regulation of charities in Ireland (an excellent overview of the changes the Act seeks to introduce once commenced is provided by Alice Murphy of Mason Hayes and Curran here.)

The regulations that govern charities are complex, involving multiple regulatory bodies. They are also the basis upon which trust is built, and maintained, between the sector and the public. Effective regulation not only protects funders, donors, and beneficiaries, but also enhances the credibility and effectiveness of the entire sector. This week, The Wheel published the results of our Members' Regulation Survey, highlighting the complexity of compliance and the work involved in delivering it.

Charities, community groups, voluntary organisations, and social enterprises all play an essential role in supporting our communities at every level and in helping to combat inequalities of every kind. Their work is indispensable, and its effects are felt throughout our society, from healthcare to education, environmental protection, the arts and beyond. As many users of frontline services provided by the sector come from marginalised or vulnerable groups of people, these organisations must operate with absolute transparency, accountability, and integrity.

Regulatory Challenges

Charities understand the importance of transparency in their work and have worked for years to encourage the establishment of Ireland’s Charities Regulator. There is, however, a very real risk that the compliance and reporting demands associated with statutory funding and regulation are becoming impossibly difficult and costly for charities (especially smaller charities) to maintain.

There is a growing danger that the ever-increasing number and complexity of regulatory requirements are getting in the way of the valuable work done by so many charities. This cost of compliance weighs heavily on the sector. As such, investment in the structures and systems of regulation is essential if we are serious about creating a better model of regulation for all charities.

Building Awareness

The work of charities needs to be recognised for the value it provides to our society. 70% of our disability services are provided by charities, and one in every three people delivering public services in Ireland works for a charity. The sector is not just a “nice-to-have" but a "must-have" social structure.

Improving public awareness of the value of the sector is an essential step in growing supportive and engaged communities. Through storytelling, public events, educational initiatives, and media engagement, organisations can communicate the truth of their vast contributions to the communities they serve. This can help to ensure that people understand and appreciates how the sector improves their lives.

A fine example of this kind of outreach is the We Act campaign (WeAct.ie), a collaborative project that celebrates nonprofit workers and volunteers by telling the stories of their impact. The continued development of projects like We Act, and the building of a grants programme for sector organisations to create communications projects that connect the public with their services, would greatly enhance awareness.

Building Trust Through Genuine Partnership

In practice, Ireland has what is called a “hybrid model” for public service in Ireland; the State works in partnership with charities to deliver services. A genuinely collaborative approach is fundamental to the success of such a model.

In 2022, the Department of Rural and Community Development launched a document called “Values and Principles for Collaboration and Partnership Working with the Community and Voluntary Sector”. Developed by the sector in partnership with Government, the “Values and Principles” set out in this document embrace social justice and active participation, along with respect, collaboration, and value for money.

The “Values and Principles” are used by central and local government, as well as state bodies and regulatory bodies, as a basis for their interactions with the community and voluntary sector. They provide a basis for respectful and inclusive engagement in reaching our common goals. It is important, then, that funding bodies fully commit to inclusive dialogue with sector organisations to meet their shared objectives.

Recognising and Supporting an Essential Sector

There are around 321,000 people working in charities across Ireland. These people are a vital part of the economy and should be valued as such.

Yet, the absence of a real plan to sustain the sector into the future is fueling a severe recruitment and retention crisis – charities simply cannot either attract new staff or hold on to staff they already have. As a result, services are under threat. We know that government values the sector, but when it comes to the actual funding and long-term strategic planning, we simply have not seen the necessary whole-of-government response.

An interdepartmental working group on the sustainability of the sector, within the Department of the Taoiseach, with a remit to conduct research and co-design solutions which ensure this sustainability, is urgently needed and should be resourced.

A Holistic Approach

This new legislation is a welcome step forward in ensuring that charities are required to operate with the highest levels of integrity and transparency. Now there is the time to build further support for this vital sector of our society. Budget 2025 presents an opportunity for Government to invest in both the infrastructure of regulation and the sustainability of our hybrid model. This in turn will help to improve the lives of the countless number of people that these charities support.