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Irish Charities Tax Research Limited 2012 Annual Conference Ashling Hotel, Dublin Opening Address by Minister of State Kathleen Lynch, T.D.

Good morning everyone and thank you for your warm welcome. I’m very pleased to have been invited to open this, the 2012 Annual Conference of Irish Charities Tax Research Limited.

ICTR’s Annual Conference has become a firm fixture in the annual calendar of the charity community. It’s a chance to come together, to reflect on the past year, to take stock and take strength before stepping forward again with renewed vigour and purpose. As someone who sees at first hand the vital work carried out by many charities in communities across the country, I am delighted to join you in this event.

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Your conference this year is on the theme of renewal, a very timely and thought-provoking theme. It would be difficult to overestimate the importance of charitable work in our society. My own Ministerial portfolio of Disability, Equality and Mental Health brings me in frequent contact with the valuable work of charities working in those areas. I am often amazed and indeed humbled by what I encounter. I see expertise, drive, compassion. I see innovation, management skills, people skills. And of course, I see commitment. Commitment that persists in the face of some of the most complex and seemingly intractable problems in society. Commitment that is born of a deep-seated desire to help those among us that need help, and, in doing so, to make things better for all of us. This sense of commitment to a better future is something that we need now as much and perhaps even more than we have ever needed it. That is why you in the charities sector have a very special part to play in our national recovery and renewal.

In speaking of the great contribution that charities can make and are making to the recovery, I feel it’s also important to acknowledge the huge challenges many charities are facing at present. Far from being immune to the effects of the economic crisis, many charities are facing reductions in income at the same time as demand for their services increases. Donations from the public are under pressure as personal incomes fall for many people. And for those many charities that depend on State funding for a large proportion of their income, the urgent need to reduce Government expenditure across all sectors has resulted in funding reductions. This means that, just as we are having to do in Government Departments and Agencies, charities are having to take very difficult decisions about how to retain core services. I know that’s difficult. And I know there are no easy answers. When the need is as great or greater than ever, but the resources are simply not available at the levels they were in previous years, we need to work smart and work together and find ways to meet as much of the need as we possibly can.

A strong and healthy charitable sector is not only characterised by its work, but also by the trust and confidence of the public. It has long been recognised that good practice and high levels of accountability and transparency in charities are essential elements in building and maintaining that trust. Levels of trust and confidence in charities in Ireland are consistently found to be high in surveys of the public. And there are many examples of best practice, good governance and strong accountability and transparency across the sector. Such practice needs to be supported where it is found and spread to where it is not.

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With this in mind, I want to speak briefly now about Government policy on the regulation of the charities sector. I speak on behalf of the Minister for Justice and Equality, Alan Shatter, who holds policy responsibility for this area. The Charities Act 2009 was enacted to provide for the better regulation of the sector. Its aims include increasing transparency and accountability and, by so doing, fostering public trust and confidence in charities. Because of the costs associated with its implementation, most of the Act’s substantive provisions have yet to be implemented. However, it remains the Government’s intention to implement the Act as resources permit.

In light of the unavoidable delay in commencing further provisions of the Charities Act, the Department of Justice and Equality has, in recent months, examined how the objectives of the Act might best be progressed in the current economic circumstances. Arising from this, the Minister has indicated that he plans to consult with the charities sector and the public on the implementation of the Charities Act. The Department of Justice and Equality hopes to publish a consultation document before the end of the year. The consultation will invite views from charities, other interested stakeholders, and members of the public on issues connected with the implementation of the Charities Act. These will include the setting up of a Charities Regulatory Authority; the statutory registration of charities and granting of charitable status; and the types of information that a Charities Regulatory Authority might require from registered charities each year.

I know that many of the organisations represented here today will have a keen interest in such a consultation and I hope you will take part in it. Your informed and considered participation will be of great assistance to the Government in advancing the regulation of the charitable sector in line with the 2009 Act, a goal many of you have supported for some time. The development of the Charities Act itself was characterised by active engagement from the charities sector. It is consistent with this approach that charities should be consulted at the implementation stage as well. I hope you will take this opportunity when the consultation document is published towards the end of the year.

 

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As we hope to move forward together with the statutory regulation of charities, it is important nonetheless not to ignore the important contribution of non-statutory, sector-driven approaches to strengthening best practice. Voluntary codes of practice can play a valuable part in supporting and encouraging best practice. Many of you will be aware that, for several years, the Government has supported a project managed by ICTR and with the valuable input of an independent Implementation Group chaired by Peter Cassells, to support best practice in charity fundraising. In recent months, further project funding of almost €65,000 has been made available to ICTR for this year and next year by the Department of Justice and Equality. This phase of the project aims to increase the number of major fundraising charities signed up to the principles. In this way, donors will be able to have confidence that a significant proportion of all fundraised charity income is raised in accordance with these principles. Openness, respect and honesty are at the core of these principles. Their aim is to provide a set of agreed and accessible standards for charitable fundraising strategies and projects. Sign up and adherence to them on the part of charities represents a straightforward and demonstrable commitment to greater accountability and openness. I would encourage all charities that fundraise to delay no longer in committing to these principles. For those charities already signed up, I would say – encourage your peers to do the same. High standards in fundraising are at the heart of that precious commodity - public trust in charities.

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The work that ICTR has done in partnership with Government on the fundraising codes is of course only one aspect of their work. ICTR has been an eloquent advocate and leader in the charities sector in this country for many years. I would like to take this opportunity to pay tribute to their work, with a particular note of thanks to Executive Director, Sheila Nordon.

In conclusion, let me congratulate you and wish you every success for today’s Conference. I feel sure it will be a productive and enjoyable day.

Go raibh maith agaibh go léir.