As the principle Non-Profit practitioner, 2into3 will be stimulating debate within the sector. We will be do this in a number of ways which we will notify you of here.

If you wish to be notified of these events and occasions, please leave us your contact email address, on the right

There are almost 7,500 registered charities and more than 24,000 non-profit organisations in Ireland. The sector provides full-time employment for about 63,000 people, but some groups are struggling because of the impact of the recession on donations and consumer spending.

Kingsley Aikins, chief executive of the Ireland Funds, predicted mergers and restructurings among Irish non-profits, mirroring moves in Britain and the US. Senior management in the Ireland Funds recently worked with the Irish Heart Foundation and consultancy firm 2into3 on a report on the issue called Collaboration for Greater Impact.

‘‘Our sector is not immune from the ill economic winds, and Irish non-profits - particularly where their work complements one another - are talking about the possibilities of working together more or merging,” said Aikins. ‘‘Over the coming months and years, I would expect to see rationalisation and restructuring in many non-profits here.”

The Collaboration for Greater Impact report suggests that there is duplication among the work of non-profit organisations and suggests they could work better together

The reports use the case study of the merger of Self Help International in Ireland with Harvest Help in England last year, as an example of the savings that can be achieved by mergers. The two organisations became Self Help Africa, which operates in nine African countries instead of the five in which Self Help Development International had worked. Income for 2008 increased to €10 million, from €7 million in 2007The collaboration report noted that savings may be found through efficiencies of scale, such as sharing employees or administrative functions. Collaboration may also help groups to raise more funding and attract more experienced or specialised staff.

Research carried out by the Centre for Non-profit Management at Trinity College in 2006 cited the example of 48 Irish organisations operating in one particular health field, and 21 international development organisations operating in one geographic area.

“Just think, if wealthy people had given away more of the money they had over the last decade, they wouldn’t have lost it.”
(Philanthropist Chuck Feeney reflecting on the global economic downturn)

1. Overview

In the jaws of a post-Celtic tiger economic recession we are at a crossroads in the short history of planned philanthropic giving in Ireland. It is a time of falling general wealth levels being met by a significant rise in interest in philanthropic planned giving by those who have managed to retain their wealth during the unprecedented rise and subsequent fall of wealth in Ireland.

At a glance, the extent of this fall in wealth (only surpassed by the extent of its rise) would seem to have halted the emergence of a major-gift giving culture in Ireland before it even had a chance to express itself among Ireland’s wealthy.

Research, however, and anecdotal evidence is emerging that would indicate otherwise. A rate of increase in philanthropic giving greater than the fall in the wealth among Ireland’s business-elite could mean an actual increase in major gift-giving in what may be a most punishing ‘readjustment’ in national and international markets.
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Dublin: Feburary 6th, 2009: A new report has predicted a shake up and likely concentration of agencies in the charitable and non-profit sectors which currently employ over 63,000 full and part time workers and contribute more than €2.5 billion to the economy. The study* which was commissioned by Ecclesiastical Insurance was written by the Ireland Funds and Consultancy firm, 2into3.

“Like every part of the economy, the non profit sector is facing pressures especially as 70% of income comes from the State,” commented Ronan Foley, managing director, Ecclesiastical Insurance in Ireland. “The good news is that if the sector can increase efficiencies through collaboration then it represents good value for money for the Government as it can often deliver services to the citizen more cost effectively than through traditional State channels.”

The non profit sector is estimated to include over 24,000 organisations across a wide range from St Vincent’s Hospital to the GAA. It is estimated that it accounts for 8.4% of GDP and almost 9% of the workforce.

“In the good times non profit and charitable organisations tend to proliferate,” commented Dennis O’Connor of 2into3, one of the authors of the study. He pointed to the US where between 80,000 and 90,000 new non profit organisations are created every year.

However in a downturn he pointed out, “There is a strong case for greater collaboration between agencies as donors become more determined than ever to ensure that their hard earned money is being spent wisely and there are greater economies of scale.”

Kingsley Aikins of the Ireland Funds, one of the authors of the report, added “The drivers for greater collaboration are similar to those for profit companies. Value for money, competitiveness and customer satisfaction.”

The report notes that on the financial side savings may be found through efficiencies of scale, such as sharing employees or administrative functions. For some, the drive to save funds may be through staff reduction, although generally in the non profit world this tends to be managed through natural attrition rather than layoffs. Additional skills can often be generated through greater collaboration or mergers.

A big motivation for greater collaboration amongst non profit organisations is to avoid duplication of services and effort. “For non-profits working in an area and locality where there are many different organisations with similar missions and similar services, the result may be fragmented services, and uncoordinated and/or overlapping programmes. This in turn can result in identity confusion in the eyes of the public. Collaboration can help overcome these problems, leading to increased or improved services.”

Ronan Foley of Ecclesiastical Insurance cautioned that greater collaboration was not necessarily a magic bullet for the non profit sector. “Collaborative working involves risk. It is not right for every organisation at every time. As in the profit sector there can be issues of culture fit, identity, leadership and staff turnover. However, this report should be a catalyst for Irish non profit organisations to start to consider the options and benefits of greater collaboration, or risk becoming extinct as the recession bites.”

”Collaboration for Greater Impact” a paper by the Ireland Funds, 2into3 and Irish Heart Foundation, sponsored by Ecclesiastical Insurance, February 2009.

Download Report as a PDF

The Irish Sailing Association (ISA) is to embark on a fund raising campaign to train and support its Olympic hopefuls compete in the 2012 Olympics. An estimated €2.4 million was invested in the most recent Olympics, and ISA estimates the annual cost to attain Olympic medal winning standard is €1.5million per year.

This cycle, Ireland campaigned in five Olympic classes and qualified in four for the actual Olympic Games, sending 6 sailors and 6 support staff to Beijing. In comparison, Team GB (Great Britain) sent 18 sailors and 42 support staff, and competed in each of the eleven classes. Ireland’s budget was dwarfed on the International stage - Ireland spent €2.4 million in comparison to Team GB’s €27.5 million, which excludes significant corporate sponsorship - an item of which included a Volvo car for each team member.

Colm Barrington, Chair of the Olympic Steering Group (OSG), says that the correlation between investing in top class sailors and Olympic success is in no doubt. “Team GB, one of the world’s greatest performing sailing teams, has invested in their elite sailors structured programme over the last 3 Olympiad. Of the 47 medals won in Beijing, GB sailing brought home 6 medals including 4 gold, 1 silver and 1 bronze. Now is the time to increase investment, and while some of this may come from the Sports Council, the current economic climate would suggest that such responsibilities will lie with the sailing community itself”.

Over the last three years, the OSG of the ISA has been stewarding Irish Olympic ambitions. Since 2005, young Olympic hopefuls have been taking part in the ISA Academy - a structured training programme that provides professional coaching and a managed progression from junior to Olympic level. Hundreds of young sailors aspire to be chosen for the Academy programme which has had some demonstrable success with medals secured at youth level at world and European championships this summer. However, despite obvious potential at Olympic level, there is still some way to go to before consistently challenging for medals. To provide internationally competitive support and training, the OSG need over €1.5 million additional funding per annum.

The OSG have engaged 2into3 Ltd. - consultants who specialise in fundraising strategy - to examine potential long term funding streams to support Irish Olympic sailing success. Results so far indicate the presence of a genuine hunger for success and a desire for international competitiveness at Olympic level, nevertheless, there is a clear funding issue that needs to be addressed, according to Harvey Duthie from 2into3. Duthie says that most Non-Profits rely on philanthropic support and the OSG is no exception. “The appointment of 2into3 underpins the OSG’s recognition of the potential opportunities in 2012 and their seriousness in terms of attracting the funding to realise Ireland’s sailing potential and ambition for the next Olympics” he said.

Article as it appeared on the AFLOAT website, www.afloat.ie, 20th October 2008.

“Fund Raising in a Cold Climate” provides a comparative analysis of the impact of significant world events on fundraising versus markets performance and also examines the impact of recessionary periods in the sector. The Non Profit sector, which represents 8.8% of the workforce in Ireland, is frequently referred to as the third sector due its scale and role in the economy.

The report, compiled by 2into3’s Dennis O’Connor and Deirdre Hatch, looks at specific events across a seventy year period from the fall of France in World II through to the impact of 9/11 and notes that, with one exception, in declining markets donations increased from between 4% and 46%. In 2002 when the Standards&Poor index dropped by 23% philanthropy actually increased by 1%.

The report also looks at economic trends and philanthropic giving over a 40 year period and found that once adjusted for inflation, donations on average drop by merely 0.7% during times of recession.

Dennis O’Connor, Director, 2into3 and co-author of “Fundraising in a Cold Climate” suggests that while there will be changes to the manner and source of giving if history were to repeat the trend, then planned giving could potentially increase.

“Undoubtedly there will be an impact on the different types of fundraising activities and the returns in terms of donations with more emphasis on major philanthropic gifts rather than traditional mass appeals. The Irish have always been very good at giving but in the current climate it would be ill advised to rely on personal contributions from individuals who may themselves be experiencing the effects of the economic decline. On the other hand philanthropists tend not to give simply when times are good but continue to provide support through financial downturns. This is particularly relevant in Ireland where philanthropy or the provision of major gives is still in its infancy compared to other developed economies such as the US and the UK. It is an area of huge growth potential and in the current economic climate may in fact galvanise some potential philanthropists who would have amassed significant wealth in recent years”, stated Mr. O’Connor.

Concluding Mr. O’Connor said “This is not to say that Non Profit organisations should be complacent. Some non-profit businesses are more recession proof than others. In this context there is a myriad of factors at play that influence how a non-profit may fare in difficult economic times. Fundraising techniques, the mission of the organisation, the donor base and the organisation’s operation are all key factors”.

Since the public release of Fundraising in a Cold Climate Dennis O’Connor has been asked by The Medical Research Charities Group (MRCG) to present his paper at their annual conference on the 11th November 2008. You can download your own copy of the report here........Download Article

The Centre for Nonprofit Management, Trinity College, Dublin in partnership with the Center on Philanthropy, Indiana University, are holding a definitive education Programme for Fundraisers, The Principles & Techniques of Fundraising, in Dublin on 20 - 24 October 2008.

As a leading Practitioner in the non profit sector in Ireland 2into3 Chairman, Dennis O’Connor, will be contributing at the 5 day programme along with other contributors including Kinsley Aikens (Ireland Funds), Richard Dixon (Concern) and Mary Apied (President, Trinity Foundation).

Please visit www.cnm.tcd.ie for more information on this exciting programme.

2into3 Sponsors The Wheel Salary Survey

High demand for skilled professionals in charity organisations

The first survey of pay and benefits in Ireland’s community, voluntary and charitable organisations, published today, reveals a picture of a growing third sector with a high demand for professional skills.

Over 300 organisations participated in the survey commissioned by The Wheel (a non-profit support and representative body for Irish community, voluntary, and charitable organisations) and sponsored by 2into3 and mycharity.ie. The survey was conducted by Sonraí HR Research.

Ireland’s community, voluntary and charitable organisations currently employ over 40,000 full-time and 23,000 part-time staff, with volunteers providing the equivalent of a further 31,000 staff. As an industry the Non Profit Sector contributes more than €2.5 billion to the economy and accounts for 8.4 per cent of GDP employing 8.8 per cent of the work force.

The majority of the workers surveyed were female (82%), as was eight out of ten (85%) part-time workers. Half of the employees covered worked in the Health sector and a third of employees (30%) in the survey are involved in Development (including overseas development) and Housing activities.

Almost a quarter (23%) of the organisations in the survey indicated that they have experienced recruitment difficulties over the past 12 months. The main reasons stated by organisations as to why they were experiencing difficulties recruiting staff are that they could not find the right people, or could not find the right skills.

"The sector has grown extensively in recent years. One consequence of this growth has been an increase in demand for specific professional skills and competencies. The research also suggests that there is strong competition to recruit and retain staff not just within the non profit sector but also with the commercial sector. This survey provides quality information that will greatly assist individual organisations in their planning and budgeting. Repeating this survey regularly will enable us to track trends and see how the sector is developing with respect to other sectors of the economy,” said Deirdre Garvey, CEO of The Wheel.

If you would like to learn more about the salary survey please contact 2into3, directly on 01 6401914 or visit www.wheel.ie for more information.