Benefacts second annual Nonprofit Sector Analysis report – Understanding Ireland’s Third Sector – was launched today by Paschal Donohoe TD, Minister for Finance and Public Expenditure and Reform.

Benefacts has created the Database of Irish Nonprofits from the publicly available regulatory filings of Ireland’s entire population of nonprofit companies including registered charities. Available as a free report to download from Benefacts public website www.benefacts.ie, the analysis provides a rich insight into the status and financial structure of the nonprofit sector - often called the “third sector” to distinguish it from the public and private sectors.

The report shows that 80% of the nonprofit sector’s financial turnover of €12.1bn is concentrated in only 3.5% of Ireland’s nonprofits – most of them registered charities. The Irish Government is still the biggest source of funding to the nonprofit sector at €5.5bn, but two-thirds of this is fees for services. Grant (non-fee) income from government has been overtaken by other income including fees from other sources and public donations.

Newly available local registry data from public participation networks shows that when local clubs and associations are counted, the population of Irish nonprofits stands today at 29,000; when full data is available, Benefacts estimate this number will grow to 40,000 or more.

Compared to 13% of people working in the economy at large, it is still the case that fewer than 1% of the 90,000 people working in independent nonprofits enjoy the benefit of higher pay (more than €70k)

The report shows that aside from donations from individuals, philanthropic institutions in Ireland and overseas contribute at least €105m to the sector. In 2016 for the first time, reported giving by Irish philanthropies (€62m) overtook giving from international philanthropic sources (€41m).

Speaking at the launch in Dublin’s Royal Irish Academy, Minister for Finance and Public Expenditure and Reform, Paschal Donohoe said, "The database that this report is drawn from is a key piece of infrastructure that allows for higher quality analysis of public spending, which is so important. The report shows that out of the €12.1bn spent in the sector in 2017, nearly half came from Exchequer sources, outlining the Government’s commitment to the sector and to the valuable contribution it makes to the creation of a more inclusive, engaged and civically-minded society."

Benefacts Managing Director Patricia Quinn, the author of the report added, "Because it is so large and diverse, it is easy to miss the economic significance of this sector. 158,000 people work in the sector, and at €5.5bn, it accounted for 8% of current Exchequer expenditure in 2016, the latest date for which this detailed, audited information is available. But it would be wrong simply to represent this sector in terms of economic metrics. Nonprofits of all kinds, small as well as large, define the kind of society we have made for ourselves and our families to live in. Besides giving expression to a myriad of cultural and recreational interests, they provide an essential social infrastructure for civic engagement, empowerment, advocacy and community building."

Source: www.businessworld.ie