Non-governmental organisations have long benefitted from Ireland’s strong tradition of giving. A 2023 study by the Charities Regulator found that 89% of adults in the country had donated to charity in the previous 12 months, while the 2022 World Giving Index ranked Ireland second in Europe in donating and volunteering, just behind Ukraine. However, despite this pervasive commitment, ‘philanthropy here is underdeveloped,’ says Éilis Murray, CEO of Philanthropy Ireland, with a ‘very low number of independently structured corporate philanthropies’ in the country.
Philanthropy is generally defined as a planned approach to giving with a set purpose that benefits the common good, typically resourced by high-net-worth individuals.
Murray adds that while current activity here is broad-ranging – it includes everything from ‘small community grants to men’s sheds and new mothers’ groups to larger advocacy projects with a national remit’ – its scale lags behind other countries. ‘For context, there are about 8,000 grant-making organisations in the UK, whereas in Ireland there are only around 100,’ she says.
Building knowledge and awareness of philanthropy is among the government’s priorities
Deepen understanding
It’s a situation that has led the government to recognise a helping hand may be needed. Last December saw the launch of Ireland’s first national philanthropy policy. The initiative, which runs from 2024 to 2028, is led by the Department of Rural and Community Development and designed ‘to deepen understanding and knowledge, create an enabling environment and accelerate engagement with philanthropy in Ireland’.
The policy sets out five key objectives – communication and awareness raising; data and research; stimulating and incentivising philanthropy; government and sectoral partnership; and capacity building – supported by a series of 21 actions. Despite some high-profile endeavours here in recent years, in particular the work of Irish-American billionaire Chuck Feeney’s Atlantic Philanthropies, which gave over €1bn to Irish NGOs until its winding down in 2018, the need to build knowledge and awareness is among the priorities.
The focus on awareness-raising reflects a 2021 Indecon report that found ‘limited research and information available on the philanthropic sector in Ireland’ and highlighted a need for ‘a clear understanding of the value of philanthropic giving to society’ here.
Ireland has 1,600 individuals worth €20m or more
Fiscal measures
The policy launch looks to have timing on its side. The Sunday Independent reported in April that ‘the number of super-rich people in Ireland has increased by 200 in the past two years,’ giving Ireland 1,600 individuals worth €20m or more. The Irish Times also recently noted that ‘a plethora of family investment vehicles have sprung up in Dublin’, largely as a result of lucrative sales of businesses.
And it’s not just high-net-worth individuals. The policy also recognises ‘the potential and scope of corporate giving in Ireland’ and argues the opportunity to address a particular historic weakness in Ireland is strengthened by ‘the number of multinationals with corporate philanthropy structures already in place in their home countries’.
Of particular interest to accountants will be the ambition to identify and champion fiscal measures that facilitate the growth of philanthropy. Greater use of strategic match funding and seed funding is mooted among philanthropy ‘types’ (see boxout) and illustrated in the policy document by the success of social innovation organisation Rethink Ireland. Its funding grew from €5m in 2016 to €96m in 2023 through an approach that matches philanthropic donations with government funds.
The policy also proposes consideration for favourable tax treatments for philanthropic giving but caveats this with OECD advice that such incentives should be ‘consistent with the underlying policy goals’ of a country and ‘must be targeted to address needs and add value’.
‘Accountants can set the scene for maximum tax-relieved charitable giving’
Role for advisers
Finance professionals who count high-net-worth individuals among their clients will welcome a concrete role for them in the path ahead. The 21 objectives include one to ‘identify and activate measures to encourage professional advisers (eg tax advisers, accountants, solicitors) to discuss philanthropy with clients’.
It’s a conversation many accountants are already familiar with, and Marc Westlake, managing director, Everlake, has no doubt they can make a difference. He says: ‘As with many matters relating to personal finance, an accountant can play a key role in supporting effective philanthropy with their clients.’ Having sat on the advisory committee for the Community Foundation for Ireland for 10 years, Westlake says he has, with others, ‘wrestled with the idea of how to make philanthropy more mainstream’ in Ireland and agrees that information campaigns have a role.
He adds: ‘Simply raising awareness of an issue is a necessary first step to assisting professionals to increase awareness amongst their clients, which should lead to increased charitable giving for the benefit of all.’ And, of course, financial advisers are critical for practical guidance. ‘They can set the scene for the maximum amount of tax-relieved charitable giving possible,’ he says.
Ireland is being watched with interest by many philanthropic organisations in Europe
Pioneering
With a three-year review process built into the policy, it should be clear by 2026 whether real progress has been made and how it can be accelerated. Those insights may have benefits beyond Ireland, as Murray says the policy, one of the first of its kind internationally, is being ‘watched with interest by many of our European counterparts in the philanthropy space’.
The paucity of trusts and foundations in Ireland, as identified by a 2010 McKinsey study, suggests there may be a hill to climb culturally if Ireland is to truly catch up in this area. A recent high-profile example of large-scale giving, the donation by horse-racing billionaire JP McManus of €1m per county to Ireland’s GAA clubs, points to an ad hoc charitable approach remaining in favour even among the wealthiest here.
However, with a growing number of high-net-worth individuals and a thriving corporate scene, as well as no apparent shortage of social issues to concern them, a more structured approach to giving looks set to emerge. It could pay handsome dividends socially and culturally.
Types of philanthropy
Strategic philanthropy
Often solutions-driven, strategic philanthropy seeks to deliver long-lasting change, and is often evidence- and research-based.
Community and place-based giving
Based on a sense of belonging to a local community, this approach involves donors supporting a geographical area of connection for themselves.
Venture philanthropy
The venture philanthropy approach seeks to build stronger charities and social enterprises by providing them with financial and non-financial support, and, in the words of the national philanthropy policy, ‘using all the tools in the philanthropist’s toolbox’.
Trust-based philanthropy
With trust-based philanthropy, the principles of trust, collaboration and partnership underpin the funding relationship.
Match funding
This approach matches private funding with public funding to support a specific cause or social challenge.
Source: National Philanthropy Policy 2024–28
