Charities 2037 Report

Charities 2037
An Amárach Presentation to Charities Institute Ireland
MMCL/COR/S17-063
© Amárach Research, 2017

2
Project background and purpose
Methodology
Research outcomes
Consequences and implications
Next steps
Presentation Structure

Project Background and Purpose

4
Much is changing in Irish society:
– Citizen attitude and expectations.
– Economic recovery is freeing up some resources.
– Increased purpose of regulation.
The change in nature of charity purpose:
– Much sectoral work previously about alleviating poverty.
– More complex issues being addressed by charitable organisations.
– Work also includes advocacy for change.
– Challenge of trust and purpose in the sector.
The role of different arms of government:
– Regulator.
– Purchasers.
– Consumers.
Why now?

5
Interviews with 25 charity leaders:
– Specialists, Chairpersons; CEOs; Government;
Governance.
Surveys with key stakeholder groups:
– General Public – nationally representative survey of
1,000 – building on work previously done for
Fundraising Ireland.
– Staff members. Survey made available through CII
member organisations. 364 responses in total.
– Volunteers - Survey made available through CII
member organisations – 101 in total.
Methodology

6
And 2037 is not that far away…
In 1997…
– Divorce became legal in Ireland.
– Bertie Ahern becomes Taoiseach, Mary McAleese becomes President.
– Bill Clinton was sworn in for a second term as President of the United States.
– Tony Blair becomes British Prime Minister.
– UK hands sovereignty of Hong Kong back to China.
– Bloomsbury publish Harry Potter and the Philosopher's Stone.
– Teletubbies starts on BBC.
– Steve Jobs returns to Apple.

7
And in 1997 the Charity Sector
Was largely unregulated

10
Almost two thirds (61%) of the public believe that
charities have an important role to play in Irish society.
Just over half believe (53%) that they provide services
that compliment the work of the State.
Seventy percent of the public believe that the State is
relying too much on the charity sector.
Almost two- thirds (64%) of the public believe that
there are too many charities and that those with a
similar scope and intent should consider merging
(68%).
Charitable organisations are perceived as core part of society …

11
…staff and volunteers even more convinced of its merit
Staff (96%) and volunteers (90%) believe that charities have an important role to play in Irish society.
Charity service provision compliments services provided by the State (Staff – 86%; Volunteers – 80%).
They believe that the State has an overreliance on charities services (Staff – 87% and Volunteers 91%).
Staff in particular think that there are too many charities (78%) and that charities with similar functions should
consider merging (79%).

12
… but the public look at the sector in a harsh light.
Far more distrust rather than trust charities – with no evidence of a trust
recovery.
Just 7% of the public say that their perceptions are more favourable when
compared to 12 months ago, while two in five have less favourable attitudes.
One third of staff and volunteers (33% and 36%) have less favourable attitudes
to charities than they had a year ago.
Just one in six (16%) foresee charities having more influence in 2037 than they
do currently – although 40% say that the sector’s influence will stay the same.
Staff and volunteers are more optimistic 32% and 37% respectively.

13
Trust Issues
17%
14%
25%
17%
20%
7%
1%
10%
11%
26%
19%
23%
9%
1%
15%
14%
24%
23%
17%
5%
2%
17%
11%
19%
23%
22%
6%
1%
0%
5%
10%
15%
20%
25%
30%
35%
No trust at all Distrust Somewhat distrust Neither/nor Somewhat trust Trust Trust completely
Trust in charities…
2014 2015 2016 2017
Q. How much do you feel you can trust Irish charities nowadays?
The public look at Charities in a harsh light –
less than one third trust them…

14
… Even staff and volunteers take a nuanced view
6
1
1
7
0
1
22
7
5
35
35
40
30
57
52
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
General public
Volunteers
Staff
"I trust some charities more than others..."
Strongly disagree Slightly disagree Neither/nor Slightly agree Strongly agree

15
33
51
16
36
52
12
44
49
7
0
10
20
30
40
50
60
70
Less Favourable Same More Favourable
“In what way, if at all, do you think your attitude towards charities has changed
in the last 12 months?”
Staff Volunteers Public
And staff and volunteers share the scepticism

16
Reflected in a series of outcomes on salaries
29%
22%
39%
6% 5%
23% 23%
44%
7%
3%
34%
26%
31%
7%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Strongly agree Slightly agree Neither/nor Slightly disagree Strongly disagree
“Wages in the charity sector are too high”
2015 2016 2017
Q. Agreement with statements: “Wages in the charity sector are too high”

17
The Best People – sort of…
Q. Agreement with statements: “Charities should get the best professionals possible to work for them”
36%
32%
21%
7%
4%
27%
33%
27%
9%
4%
28%
32%
27%
10%
4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
“Charities should get the best professionals possible to work for them”
2015 2016 2017

20
Senior Management – II
Q. Agreement with statements “Senior management in charity sector should be paid less than senior management in similar sized companies in private sector”
22%
29%
32%
11%
5%
19%
27%
37%
13%
4%
21%
28%
30%
15%
6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
“Senior management in charity sector should be paid less than senior management in
similar sized companies in private sector”
2015 2016 2017

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Staff and Volunteers are keen on change
% AGREEING WITH THE STATEMENT STAFF VOLUNTEERS PUBLIC
I think that there are too many charities with
similar functions 78% 80% 64%
I think charities working within the same sector
should consider merging 79% 84% 68%
I think the majority of work done by charities
should be done by volunteers 8% 36% 64%
I think charities will have to be more
transparent about how they spend their money
into the future
94% 96% 83%
I think charities should get the best
professionals possible working for them 94% 78% 68%

22
Staff and Volunteers think media perceptions of the sector are poor.
Staff feel that charities get a raw deal in they way that
they are portrayed by the media – 69% believe this to
be the case. Almost half of volunteers (49%) agree.
Staff and volunteers also believe the responses of the
sector to the media has been ineffective (60% and 55%
respectively).
Media perceptions will drive public, staff and
volunteers perceptions.

23
There is an underlying need to communicate the core purpose of
charities as a sector
“I think umbrella groups representing charities need to be very clear about how charities operate, the
obligations charities have under legislation, particularly those that are companies limited by guarantee, the
increasing compliance and cost of same. Charities need to be forthright about the services provided, the
challenges faced by underfunded services, constantly responding to crises and emergencies, the lack of
planning for an ageing population and associated needs which is well documented and well known by our
Government and Health Service Executive. Charities should not be constantly defending the work that is
done by a great many hard working individuals and volunteers. It would not be possible for many charities to
operate the variety of services provided by only engaging volunteers. Staff need to be employed and paid
appropriately for the right skillset, qualifications and experience to engage with and provide a meaningful
service for the people availing of the charity's services. The public need to understand the reality of this and a
very open and transparent campaign should be done with the media. Unfortunately, it is common that
sensationalism and bad press will sell papers, sometimes the good stories are never heard. While I absolutely
do advocate for transparency and accountability in charities, and it is great that we do know about bad
practices…the good stories and valuable work that is done by charities and their staff and volunteers needs to
be seen too.” (staff member)

24
To deal with the obvious disillusionment and burnout…
“I'm [XX] years of age, I'm at essentially CEO level in an organisation, I'm paid under €50,000, have huge
responsibility and a work load that takes over my life. Professionally, said workload also means I fire fight
90% of the time, which drastically reduces any job satisfaction. I also cannot pay my staff the salary they
deserve, despite members of my team working hours far in excess of what they're contracted to and having
skills that would be more adequately compensated in the private sector. I have, like many others I speak to,
stopped loving my work and you should love your work, to work in the charity sector because you don't do it
for the pay. I could get double what I'm paid, in the private sector and have less responsibility. I have a
mortgage like everyone else and feel that the complete under recognition by government departments and
the public at large for a skilled workforce in the charity sector does not encourage me to stay. It's a life long
financial sacrifice to stay and that's a big ask these days, with mortgages in Dublin. It seems to be a largely
unpalatable idea, that people who work in the charity sector, are skilled professionals who require a wage
that reflects this. I feel this is something we need to work on. Why are we ok with paying the CEO of a large
telecoms company a six figure salary and not ok with a paying a CEO of a charity ...” (staff member)

25
… And pressure
“Decreased funding but with higher targets to achieve; more reporting to an extreme degree
that impacts on time available for service delivery; quantitative targets that do not support a
holistic approach to the individual or a community development approach. Severe staff stress
due to greatly increased workloads. Lack of ability to plan year-to-year due to lack of multi-
annual funding - we have to tender for the work every year, which takes up a lot of staff time -
time that could be spent on working with clients.” (staff member)

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And a requirement to address future perceptions
% SAME OR MORE
INFIUENCE
STAFF VOLUNTEERS PUBLIC
Technology 100% 100% 96%
Immigrants 94% 90% 80%
Foreign Companies 93% 93% 86%
Irish Government 85% 85% 75%
Charities 66% 76% 56%
RTÉ 25% 23% 45%
Looking ahead to 2037 how much influence, if any, do you think that
each of the following will have on the daily lives of Irish people?

27
There is a mismatch between what the public thinks is feasible and what staff and volunteers can deliver:
– In the public’s eyes charity is often about giving alms to the poor.
– Simplistic models need to be challenged.
There is a requirement and demand for change in the sector – led by staff and volunteers.
The pressure that staff are under for day to day delivery means that staff in charity organisations are unable to lead on
this (and it is more properly a board function).
Staff and volunteers needs to see leadership from the sector and government.
There is a requirement for a more coherent response from the sector that focuses on overall impacts rather than the
process of individual organisations.
Initial Conclusions from Surveys

29
A series of 25 in-depth interviews
Each lasting about an hour.
Focused on a common discussion guide – tailored to each interview.
Like all qualitative interviews, meant to be informative rather than absolutely representative.
Reflect many of the findings of the surveys – with even more demand for change.

30
There is an underlying requirement from them for excellence from all stakeholders:
– Board members.
– Staff members.
– Volunteers.
– Funders.
– Media.
They believe that charity plays a fundamental role in Irish society and will continue to do so.
– They believe that the sector is underappreciated by society.
– Definitely underappreciated by Government in terms of the role of service provider.
Requirement for Excellence …

31
… and for Change!
The role of change at the individual organisation level is down to
the Board. The Board must set the strategic direction – it must
ensure adherence to and clarity to the common purpose and
goals.
There are mixed views as to whether there are too many or too
few charities
– But there is a common view that organisations that have
served their purpose or lost their momentum have to change
or merge.
– No-one wants to stop the emergence of new charities or limit
the appetite of new volunteers.
They want a far greater understanding by Government of the role,
input and impact of charitable organisations.

32
In their view clarity of mission and purpose is key…
The key board function is to provide absolute clarity about the role, purpose and function of the organisation.
Separation of powers and functions between board and executive seen to be critical.
Board must ensure organisations avoid lack of focus and distraction.

33
But sector must evolve…
All stakeholders have responsibilities as well as rights.
Key issue is not too many or too few but effectiveness.
More larger organisations should emerge:
– But given the nature and scale of many, that won’t necessarily happen organically.
Charities and sector must have confidence in the complexity of what they deliver:
– Defend the requirement of specialist skills.
– Defend the need to pay appropriate salaries.
– Respond to the debate about salary and purpose.
Transparency, regulation and governance essential.
And all stakeholders must be kept up to date on the sector’s evolution.
Unless the sector drives change, no-one else will.

34
Volunteers are at the heart of what charities do.
– The nature of the activity may change, but the spirit of volunteering is essential.
– Governance requires refreshment of Board.
Needs to be push back to other stakeholders on value of what charities do.
– Which also requires constant internal review within organisations.
While keeping core values

35
Regulation is Key
Builds public trust.
Raise operating standards.
Create a climate of protection for Board members.

37
The sector will face the continuing challenge of declining public trust.
Declining public trust will feed into disillusionment for key stakeholder groups:
– Harder to get people involved.
– Hard to focus on core mission and purpose.
– Harder to raise funds.
– Harder to explain why and how you operate.
– Harder to attract people to the sector.
Yet nothing in the research findings does anything to downplay the critical role that the sector plays in our society.
Unless things change…

38
There is a huge appetite for change
As well as declining public trust – key stakeholder groups – staff, volunteers, leaders and implicitly the general
public also want change.
Recommendation
There is a requirement to regain public trust – this has to be addressed in a number of ways – but hoping that
nothing bad will happen is not one of them.
Stakeholders need to see change happening across the sector, not just in individual organisations.
Proactive change will bring about confidence and reclaim trust.

39
Organisational Change
There is a view that there are too many charities – or too many replicating each other’s activities.
Recommendation
Charitable organisations’ purpose does not include mergers and acquisitions! Yet there has to be some model or
framework which facilitates the merger of overlapping organisations. It is a specialist and time absorbing process. The
Credit Union movement had a model (The Restructuring Board – Rebo) which may be relevant.
There has to be still scope for small, new and focussed charities to continue to develop to their beneficiaries.

40
Impact Measurement
One of the key challenges is to provide a consistent understanding to all the stakeholders of the real impact that
charities have:
– To funders.
– To the public.
– To staff and volunteers.
– To beneficiaries.
Recommendation
You simply have to measure (at an economically appropriate cost) the impact of work done. This has to happen at
project, organisation and sectoral level.
Robust data can lead to robust argument, defence and debate. Within organisations there has to be measurement and
also at a sectoral level.

41
Volunteer Engagement
This is the unstated benefit of charitable engagement – volunteers personally attest to the benefit of engagement.
Volunteering can happen at various different levels. As more organisations become more specialist and the operating
environment becomes more complex, organisations need to attract specialists to their activities.
Recommendation:
Case studies of the personal benefits of volunteers should be created.
There has to be more tangible career benefit for engagement – CPD hours etc. CII should engage with the professional
bodies to seek to provide quantitative and tangible benefits for engagement.

42
Government
Government is right to require an impact from the funds it provides the sector, and to ensure the highest possible
operating standards.
Government also has to rationalise the impact it has on the effectiveness of organisations to create a more streamlined
reporting process. Many charitable organisations are in effect SMEs and the reporting requirements are onerous in the
extreme.
Recommendations
Government should not use the sector as a below cost alternative to its own provision of services, and set benchmarks
for costs and overheads that it could not and would not meet for itself.
There needs to be streamlining of the reporting requirements for charitable activities – which ensures value for money
and transparency but avoids duplication and overlap. In Australia there is a charity passport which cuts down on
duplication.

43
Communication
All of the recommendations to date will build on the core issues facing the sector:
– Build resilience and confidence.
– Provide a vehicle for change.
If the sector only firefights, it will be characterised as in a permanent crisis mode – this is not the case.
It needs to get across a constant process of change:
– In the way that it is organised.
– In the way it responds.
– In the way that it is evolving and developing.
– In the way that it holds itself and others to account.
– In a way that attracts new energy and people to the sector.

44
So what will the sector look like in 2037?
It will be playing to its strengths
– Passionate, flexible, impactful with people at its core.
It will be transparent and open.
It will have world class organisations.
It will be recognised and understood by all in society for the benefits that it brings to our society.
It will be a defining characteristic of our society.
It will compliment rather than compete with the work of the State.

e. info@amarach.com
t. 01 410 5200
w. www.amarach.com
b. www.amarach.com/blog
Tw. twitter.com/AmarachResearch
s. slideshare.net/amarach/

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