New Report: Charities Struggle to Keep up with Growing Demand for Services

Immediate Release: 2 October 2012

Issued by The Wheel

CHARITIES STRUGGLE TO KEEP UP WITH GROWING

DEMAND FOR SERVICES, ACCORDING TO NEW REPORT

“One-fifth of Charities Have Cut Services”

Two thirds (63.5%) of Irish charities have experienced an increase in demand for their services over the past three years, according to a new research report published today by The Wheel, a national body representing 900 nonprofit organisations.

The report, A Portrait of Ireland’s Nonprofit Sector, also reveals that almost 60% of charities have seen a reduction in their income over the same period, while a third (34%) reported both a drop in income and an increase in service users.

Five hundred and six charities participated in the study conducted by RSM McClure Watters in association with the Northern Irish Council of Voluntary Action (NICVA) and Whitebarn Consulting.

Most charities are responding to the increase in demand and reduced income by securing efficiencies, collaborating and reducing the scale of their activities, but almost one fifth have cut services.

The largest savings been made on staff, with two thirds of nonprofits having taken steps to reduce spending on personnel, for instance, 36% have introduced pay freezes and a quarter has reduced pay.

Commenting on the findings, Deirdre Garvey, Chief Executive of The Wheel, said: “Charities are responding to deep cuts in statutory funding, a decline in public donations and an increasing demand for their services by cutting costs, but many organisations are now stretched to the limit, and it is very likely that we will see a further cuts in areas such as disability services, social housing and youth services.”

Other key findings include:

Only a third of charities believe that it is possible to develop a new approach to earning income to make up for fall-offs in traditional funding.
The number of volunteers has increased over the last three years, yet recruiting, training and supervising volunteers present major challenges for organisations.
Almost 30% of Irish nonprofits do not fundraise from members of the public.
The sector’s workforce is three-quarters female and growing.
20% of nonprofits are still unaware of the Charities Act 2009, and of those that are aware, only 60% are prepared for the requirements.

The report, A Portrait of Ireland’s Nonprofit Sector, can be downloaded from www.wheel.ie.

/ENDS

For more information or to arrange an interview with Deirdre Garvey, contact Gert Ackermann on 086 176 9287, (01) 454 8727 or gert@wheel.ie.

NOTE TO EDITORS:

The Wheel commissioned RSM McClure Watters in association with NICVA and Whitebarn Consulting to undertake research into the nature and extent of community and voluntary activity in Ireland and the challenges faced by people who lead and manage nonprofit organisations. The key strands of the research included an online survey of nonprofit organisations, interviews with stakeholder and desk research. Five-hundred and six completed surveys were received representing a response rate of 11%.

About The Wheel:

The Wheel is a national organisation that represents and supports community, voluntary and charitable organisations in Ireland. Founded in 1999, we currently have over 900 members across Ireland, reflecting the enormous scope and scale of this vibrant and diverse sector.

The Wheel exists to help change people’s lives for the better. We do this by helping nonprofit organisations get things done, more efficiently and more effectively. As an independently governed, membership-based organisation, we represent our members’ shared interests to Government and other decision-makers, and we promote better understanding of the vital work they do for people in Ireland. See www.wheel.ie for more.