The Community, Voluntary and Charitable Sector The Wheel The Community, Voluntary and Charitable Sector facts and issues

some terminology Charities Non-profits Non-Governmental Organisations (NGOs) Community Organisations Voluntary Organisations Social Enterprises Community and Voluntary Sector All The Above!

The extent of the sector 8,500 charities on Charity register These are a subset of 12,500 entities that have made themselves known to the Charity Regulator, themselves a subset of up to 25,000 “civil society” groups 50,000 - 70,000 non-profit Board members 109,000 employees €7Bn annual turnover

a very varied sector! supporting: older people; people with disabilities; children and families; young people; people seeking employment; independent living; people experiencing poverty and…. focussing on the environment; independent living; sustainability; fairness and justice; combatting poverty; human-rights; mental health; and….

what are they doing?

Where does the money come from? TCD Hidden Landscapes Report 2006

Our cv sector is core element of our social infrastructure Our community, voluntary and charitable sector is a core component of Ireland’s social services infrastructure. Much of our health and social care services and community supports have evolved and grown out of communities responding to their own needs – with big part of the funding being provided by the state – and huge fundraising contributed!

Trustees have BIG responsibilities So trustees of Ireland’s charities are responsible for the custodianship of over €7Bn per anum (with €3.6 Bn of that coming from the HSE) and a further €740 million in public donations Putting on our members-of-the-public hat: do we have an interest in how charities spend all this money?

public interest in our work There is a big public interest in the work that charities do All of the funds under the control of charitable trustees are public funds It’s really important that we understand the need to apply highest governance standards – with clarity about who is responsible: the Trustees

43% of the public do not trust charities “To what extent do you trust each of the following institutions?” Ranked by ‘Up to a point + A great deal –ICEM April 2016

Less than half trust charities to use donations wisely “When you think about charities in general how much do you trust them to spend a donation wisely? Please choose the one that most represents your views.” ICEM April 2016

Challenge: re-understanding public-benefit trusteeship Charities are not private trustees are not “owners” of funds or assets – rather they are guardians of public funds that they control for a charitable purpose Charitable status is a privilege Trustees are accountable for use of funds: to all stakeholders, ultimately to public “Make decisions as though you are making them in public”

TRUST TRANSPARENCY + COMMUNICATION =

Five steps to maintaining trust Be transparent by publishing good quality information on the impact of your work, finances, and trustees on your website. Check that you have fully completed your organisation’s entry in the CRA’s Register of Charities, and that you have submitted your Annual Report to the Charity Regulator Adopt the Governance Code for Community, Voluntary and Charitable Organisations (or similar quality Code). Comply with the Statement of Guiding Principles for Fundraising (if you fundraise from the public). Large charities should adopt the Statement of Recommended Practice for Financial Reporting by Charities (SORP).

What should be on your website? Finances: annual accounts Governance: names of trustees, details of compliance with voluntary codes and standards etc. Registered Charity Number (assigned by CRA) Company Number (assigned by CRO) Address: address of your registered office Contact information: phone number/s and email address

. What are the challenges and realities?

strategy to restore trust? Good Governance! It is the responsibility of Board members / trustees to: provide Leadership develop, own and review Strategy Vision, Mission, High Level Goals, Objectives ensure adequate resources are provided provide policies to govern operational activity delegate delivery of Strategy to CEO / Managers / Volunteers ensure reporting framework set for CEO / Manager / Volunteers ensure compliance with legal obligations assess Risk and ensure it is managed hold CEO / Managers / Volunteers to account in relation to delivery of strategy be, and be seen to be, accountable to stakeholders The Board Remains Responsible! (no delegation of responsibility)

strategy to restore Trust? The Triple Lock for Charities All charities to complete registration process and submit annual reports All charities to comply with the Governance Code for Charities (300 now compliant, 1,000 “on the journey”) All fundraising-charities (70% of charities) to comply with the Statement of Guiding Principles for Charities All larger charities to adopt SORP

The sector makes big claims! Are they true? The voluntary and community led approach produces Responsive services tailored to individual needs? A flexibility in approach? Rapid responses to new and emergent need? A value for money focus? Involvement of users in design and control? Commitment of volunteer board members? Commitment of value driven staff Empowered communities?

Can the community/voluntary/charity sector validate these claims? We have to if we are to demonstrate the value of the sector, and what would be lost if the community-led, public-benefit motivated, not-for-profit approach is inadequately supported in future

Summary: Priorities for CV Organisations Staying in operation: Diversifying income and raising funds Cutting costs – doing more with less Finding new ways of working: Collaborate Focusing resources on what matters: Outcomes for groups and people served Partnership-working Advocacy challenge Governance: changing public attitudes – highest standards required

Thank you! Any Questions?