BUDGET 2009 SPELLS CHALLENGING TIMES AHEAD FOR IRISH CHARITIES
‘‘While we welcome the fact that Minister Lenihan has protected the incomes of the unemployed in Budget 2009, the rapid rise in unemployment and the increase in hardship that will be experienced by low income earners as a result of tax and VAT increases will further increase demand on charity services,” said Deirdre Garvey, chief executive of The Wheel.
“Cuts in the budgets of certain Government departments may result in a reduction in grant funds available to the sector – funds the sector relies on to meet the needs of the most vulnerable.” Garvey warned that the full impact of these cuts will only become apparent in the coming weeks as the relevant departments adjust their spending.
“The half percent increase in VAT, to 21.5%, will also place further pressure on community and voluntary organisations, because - unlike those operating in the business sector - they are not entitled to a VAT rebate on expenses.”
The
news comes at a time when charities are already experiencing a drop-off
in corporate and private giving due to the turbulence in the financial
markets. Nonetheless, Garvey predicts that the full effect of the
economic turmoil on the sector’s income will only become clear in
the
medium term: “Research conducted by nfpSynergy, a London-based
research
group, found that there is a delay of up to 17 months between a fall in
GDP and a drop in charity organisation’s incomes.”
The community and voluntary sector has, in recent years, become a significant player in the national economy (the economic value of non-profit enterprises in the community and voluntary sector in 2004 was €3 billion) and the sector now employes over over 40,000 full-time and 23,000 part-time staff.
“History has shown that strong and active community and voluntary sector is essential to help balance the national accounts and restore economic stability,” said Garvey.
Note to Editor:
The CEO of The Wheel, Deirdre Garvey is now available for interview. Please contact Gert Ackermann on 086 176 9287 or e-mail gert@wheel.ie to arrange.
The Wheel is a national support and representative network for the community and voluntary sector, which works to strengthen organisations as well as the sectoral infrastructure and environment. We provide a wide range of information, support services, advice and advocacy to individuals and organisations as we believe they are vital components for a cohesive and healthy society. For further information visit www.wheel.ie.
//ends
