For charities, it must feel like the challenge never ends. After all, what were the chances that, having come through a pandemic, a cost-of-living crisis would break out?
“The cost-of-living crisis is placing tremendous strain on the most vulnerable people in our communities, and charities and communities are once again stepping up to the mark to help people in need. However, rising operating costs are also having a very significant impact on their ability to provide their services at a time when more and more people are turning to charities and community groups for support,” says Ivan Cooper, director of public policy at The Wheel, the national association of charities.
The sector comprises almost 35,000 community, voluntary and charitable organisations, involves more than 86,400 volunteer directors and trustees, and directly employs 165,000 people.
These organisations fundraise more than half of their income, in effect subsidising the cost of public services in Ireland. That’s because charities and community groups provide health and social supports, services and advocacy on behalf of people with disabilities, older people, young people, children and people experiencing poverty and disadvantage in every community in Ireland.
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Indecon Economic Consultants values the work of Ireland’s charities at more than €24 billion annually.
Fortunately, the same survey found that donations are not the first thing people cut when they are reducing their spending
— Ivan Cooper
“Last year Ireland was the most generous country in the world per capita in terms of donations – the third consecutive year in which it topped the global charts. However, there is no doubt that the cost of living will affect fundraised income,” says Cooper.
Research conducted by the Irish Charities Engagement Monitor earlier this year shows that online giving has dropped since an initial surge at the beginning of the pandemic, while face-to-face fundraising is recovering at a slow rate.
“The impact of the cost-of-living crisis will no doubt slow this recovery at a time when charities are coming under severe pressure due to rising costs and growing demand for their services because of the cost-of-living crisis,” says Cooper.
“Fortunately, the same survey found that donations are not the first thing people cut when they are reducing their spending. We are therefore hopeful that the public will dig deep this Christmas to support those families and communities who are in need.”
For overseas aid the impact of climate change is being felt too. “We have seen the devastating impact of climate change on communities in the Horn and East Africa, where ongoing drought is driving a serious hunger crisis with hundreds of thousands of people without enough food,” says Sarah Kiernan, fundraising and marketing officer at Trócaire.
“The ongoing war in Ukraine has resulted in increased prices of food, energy and fuel and has led to an overall cost-of-living increase here in Ireland. The huge media focus on the war in Ukraine has also taken the spotlight off so-called ‘forgotten crises’ in our world. But our experience is that Irish people remain generous and supportive of Trócaire’s work changing the lives of millions in need in Africa, South America and the Middle East. For example the Irish public have responded with typical generosity to our appeals to support our work in Somalia, Ethiopia and South Sudan,” she says.
Demand goes up year on year and people in Ireland are very generous generally but we are seeing the effects of the cost-of-living crisis on giving patterns
— Sarah Bergin
Trócaire’s Christmas Appeal this year supports Syrian refugees in Lebanon, forced to flee and living in dreadful conditions.
The charity has developed more sophisticated ways to fundraise since the pandemic. “We highlighted ways to give safely from the comfort of home, included extra digital touchpoints such as QR codes, and drove more targeted activity on social media. To connect with others through giving meant a lot to donors during lockdown. It led to waves of generosity too,” says Miriam Donohoe, Trócaire’s head of communications.
For charities such as Barnardos, international events and need here at home collide, resulting in greater than ever demand for services.
Barnardo works with underprivileged children and their families, including refugees from crises in countries such as Syria and Ukraine.
“Demand goes up year on year and people in Ireland are very generous generally but we are seeing the effects of the cost-of-living crisis on giving patterns, especially on monthly gifting, the small direct debits on which we depend. That is a worry for us,” says Sean Bergin, Barnardos’ national fundraising manager.
Providing a monthly direct debit gives a donor more bang for their buck because it allows a charity to plan and budget, enabling more effective provision of services which, in turn, allows it help more people.
“Everyone is affected by the cost-of-living crisis and our service users, who are already vulnerable, are really feeling the effects. But I’ve been in this sector for 17 years and I’m constantly astounded at the generosity of Irish people,” says Bergin.
When it comes to charitable giving people tend to have their ‘favourites’, says Andy Heffernan of the Alzheimer Society of Ireland (ASI), whether it’s children or animals, overseas aid or those in poverty at home.
This time last year 8,500 people were homeless. Now that figure is 11,000, that’s nearly a 30 per cent increase in homelessness in the space of just one year, and that doesn’t account for all the hidden homeless
— Amy Carr
Much of that comes down to personal experience, which is why so many people feel a kinship with the ASI. more than 64,000 people in Ireland have a formal diagnosis of dementia and ASI provides a range of supports for them, from days centres to one-on-one care.
“Cost-of-living crises lead to not so much a lesser number of donations but to donations of lesser value. But people are always very generous. I’ve been in the not-for-profit sector for quite some time and it never ceases to amaze me, particularly at Christmas,” says Heffernan.
Charities such as Focus Ireland, which helps the homeless and those at risk of homelessness, are not just coping with a cost-of-living crisis, but a full-blown accommodation crisis too.
“We have seen a huge increase in the number of people coming to us. This time last year 8,500 people were homeless. Now that figure is 11,000, that’s nearly a 30 per cent increase in homelessness in the space of just one year, and that doesn’t account for all the hidden homeless, the people who are couch surfing, staying with friends and family, sleeping in tents and cars,” says Amy Carr, director of fundraising and marketing at Focus Ireland. The charities, known for its Big Busk, Shine a Light at Night and sponsored star Christmas Tree on Grafton Street is already braced for increased service demand next year. “We expect 2023 will be a particularly challenging year,” says Carr.
