Month: April 2020

Covid-19 and employment in the nonprofit sector

Sector leaders have asked for an updated analysis of employment in the nonprofit sector, to help understand the potential impact of Covid-19.

In 2019, we reported employment levels of 163,000 in 8,600 Irish nonprofits, including 69,000 people working in 60 major nonprofits – mostly charities – in the higher education and health/social care sectors, who enjoy the same employment conditions as public servants.

According to the latest filings, the current employment total is 173,000, of which 69,000 are quasi public servants.

Typically, of the 4,600 nonprofits that report having paid employees, payroll costs are highest as a proportion of all turnover in entities with more than 100 employees

Most of these are in health, education and social services. These are also the nonprofits with the greatest proportion of higher-paid employees, according to their financial disclosures.

 Number of nonprofitsAggregate turnoverAggregate payroll costsPayroll as % of turnoverRegistered charities (%)
More than 100 employees195€8,949.8m€5,937.6m66%81%
50 - 99 employees198€725.3m€€416.6m57%81%
10 - 49 employees1,657€1,782.1m€932.4m52%62%
Fewer than 10 employees2,575€797.1m€282.6m35%62%

Source: Benefacts Database of Irish Nonprofits

14,000 people work in nonprofits that depend on fundraising/donations for more than 25% of their turnover.

In another blog we have reported on the profile of fundraising and donations. Any reduction in revenues from this source will have an impact on those 800 nonprofits (including 631 registered charities) that depend on the public for a significant portion of their income, and whose employees lack the protection of public sector employment terms and conditions.

Benefacts uses open data to build and maintain a picture of Ireland’s 30,000+ nonprofit entities – incorporated and unincorporated, regulated and unregulated.

About a third of these file financial statements annually with one or more public regulatory source including the Companies Registration Office, the Standards in Public Office Commission, the Houses of the Oireachtas. These public disclosures form the basis of our analysis. Our numbers are drawn from this population, not from survey data.

Covid-19 and fundraising by nonprofits

People have been asking about the potential scale of Covid-19 impacts on fundraising charities.

Here are some benchmark figures which show how things stood at the start of this year, using currently available data.

More analysis follows in our annual review of the sector, due for release in May.

Fundraising is an important source of revenue for Irish nonprofits

At least 1,719 Irish nonprofits rely on fundraising and donations (including one-off donations, regular giving, legacies & bequests, charity shop revenues) for a portion of their income. 1,383 of these are registered charities.

With aggregate total income from all sources of €3.7bn, this group of nonprofits generate nearly €1bn in revenues from donations and fundraising – that’s more than 24% of their income.

Two thirds of this income is concentrated in the largest 50 charities, mainly in international development, family support services, philanthropy, and health services/health promotion.

For 800 nonprofits, fundraising accounts for more than 25% of their revenues

The profile of reliance on donations varies by sector. In 800 nonprofits, employing 14,039 people, fundraising and donations account for more than 25% of their revenues.

Nonprofit sectorsTotal Income - all sourcesFundraisingFundraising as % of income
Philanthropy, Voluntarism€164.0m€129.6m79.00%
Religion*€97.2m€70.4m72.40%
Environment€36.8m€21.2m57.70%
International€498.1m€232.1m46.60%
Education, Research*€126.8m€40.1m31.60%
Advocacy, Law, Politics€90.1m€26.4m29.20%
Health€742.6m€121.8m16.40%
Recreation, Sports*€95.7m€13.6m14.20%
Social Services€1,443.3m€204.6m14.20%
Arts, Culture, Media€82.4m€11.6m14.10%
Professional, Vocational€51.5m€4.0m7.80%
Local Development, Housing€260.6m€17.4m6.70%
Grand Total€3,689.0m€892.7m24.20%
* Limited data available
Source: Benefacts April 2020

Better disclosures = better data

We know that 1,719 is an understatement of the full population of nonprofits that depend on fundraised income and donations. This is because

  • In November 2019 (the last time Revenue updated their figures) 2,438 charities were eligible for tax relief on qualifying donations
  • When they filed their latest set of accounts, many nonprofit companies (37% of them charities) chose not to disclose their income and expenditure – which means we have no way of analysing their revenue from fundraising or donations
  • The financial statements of unincorporated charities – mainly religious institutions, philanthropies and unincorporated trusts – submitted since 2015 to the Charities Regulatory Authority are not available to the public because the Regulator doesn’t publish them

Benefacts uses open data to build and maintain a detailed picture of Ireland’s 30,000+ nonprofits – incorporated and unincorporated, regulated and unregulated. Contact us if you’d like to know more.

About a third of these file financial statements annually with one or more public regulatory source including the Companies Registration Office, the Standards in Public Office Commission, the Houses of the Oireachtas. These public disclosures form the basis of our analysis. Our numbers are drawn from this population, not from survey data.