Ireland: philanthropy on the rise

The Community Foundation for Ireland has published a new report, detailing the rise of philanthropy in the Republic of Ireland over the last few years. It is estimated that around €500 million is currently donated to charity each year. Those involved in the sector are hoping to double to €1 bn over the next five years.

The level of philanthropy in the country of Bono Vox, leader of the Irish band U2 ,is around 0.35% of GDP, which is roughly half that of the UK and around 16% of US levels.

Tina Roche, chief executive of Community Foundation for Ireland, said: “It is the first comprehensive survey conducted on Irish professional advisers’ view of philanthropy. This report’s findings also reveal how significant a change in the tax legislation would be for the development of a philanthropic culture in Ireland. We are already well behind the USA and probably a decade behind the UK in fostering philanthropy in this country. We need to act now to remove the current restrictive climate.”

Some of the findings from this – Ireland’s first ever detailed philanthropy research with professional advisors – are that:

1. 27% of professional advisors reported an increase in enquiries about philanthropy in the last 12 months
2. When asked about their approach to the topic of philanthropy 58% of advisors had never discussed philanthropy with a client.
3. When asked how a change in the current tax would affect philanthropy in Ireland 85% said a removal of the tax cap would increase giving.
4. 43% believed that clients require assets in excess of €1m, excluding one’s principal residence, to start to think about philanthropy.
5. 44% of advisors say less than €10,000 is the average left in wills for charitable purposes. While overall levels of charitable bequests are low there are however some very significant charitable bequests being included in wills, figures from €50,000 to €50million were mentioned by advisors.
6. 30% said their understanding of Donor Advised Funds was high or very high.

You can download the full report from the CFI website.