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Rival charities set up new super charity scam

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  • Registered Users Posts: 26,056 ✭✭✭✭Peregrinus


    I note that the six charities coming together are involved with international aidto developing poorer countries.

    Can they not tap into the €750 odd million pa the taxpayer provides for International aid? Just wondered.
    They may well do, if the programmes they want to run are compatible with the Department's policy on the programmes it wants to fund. What's your point?


  • Registered Users Posts: 111 ✭✭sunshinew


    Mango Joe wrote: »
    Charities need to be regulated, right now too many of them seem to think that charity starts at home and pay themselves and 17 of their mates in excess of €100k+ to faff around spending money that well-intended people had mistakenly thought was going to good causes.

    Cap the wages and these ignorant, greedy, amoral rats will scatter.


    https://www.charitiesregulator.ie/en

    Here you go - knock yourself out on the Charity Regulators page - you can "raise a concern" with them on all the charities you know that have 17 "amoral rats" earning over 100k.

    I know there was a number of scandals a few years ago around CEO wages - it absolutely knocked the stuffing out of the entire charity sector - both good and bad. Rules were overhauled, wages cut across the board. A charity simply HAS TO comply with the Charities Act in order to be registered and operate as a charity.

    I agree regarding a lot of duplication in the sector though and some streamlining is required- but people do want a choice. Do I support the small local charity that offered end of life counselling to my parent dying of cancer or the large Irish Cancer Society that see the much larger complex picture around cancer services, research etc. in Ireland.


  • Registered Users Posts: 40,153 ✭✭✭✭ohnonotgmail


    Peregrinus wrote: »
    Staff costs includes more than just pay, counsellors may have to be paid for all their time devoted to the job and not just for the counselling hours, and there will be employees other than the counsellors.

    My point is that a charity whose mission is mainly providing services will always spend a significant part of its budget on staff. This isn't evidence that the charity is inefficient. I think sunshinenew is wrong to say that most charities will keep staff costs below 15%, but I also don't think we should expect that they will. For many charities, staff costs ought to be substantially higher than that.

    PS: Where are you getting the €25/hr figure from? I'm not doubting you; I'm just curious.

    perhaps that 15% is the cost of running the charity i.e. their admin costs?


  • Registered Users Posts: 111 ✭✭sunshinew


    perhaps that 15% is the cost of running the charity i.e. their admin costs?

    Yes, I clarified in a later post - I meant fundraising, admin staff, promotion for donations etc. 85% needs to be spent on providing the service. I don't know if that is a rule but it is a guideline I've heard many charities follow.


  • Registered Users Posts: 12,033 ✭✭✭✭Richard Hillman


    A large section of their funding comes from Government. Politicians are setting themselves up for their job if they ever lose their seats.

    When you look into a lot of them, they are hangovers of when Labour were in power with FG.

    I keep on highlighting Spunout.ie. Founded by Ruiri McKiernan who was on President Higgins (Labour) Council of State. One of the directors was Chris Donoghue (formerly Newstalk, now FG).

    This is their income

    Income-Chart-2018_200420_165123.png?mtime=20200420175126&focal=none

    This is their spending
    Expenditure-Chart-2018_200420_165011.png?mtime=20200420175013&focal=none

    They raise about 110k themselves and the other 500k+ comes from Government.

    What do we get for it?

    About 20% goes on "Operations" and Youth Activity. The rest goes on wages and running the company. They get **** all Social Media Interactions.
    https://twitter.com/SpunOut?s=09
    It's most the same person liking a retweeting the posts. (he works there BTW)

    I would imagine if we turned up at Spunout.ie HQ over at Fleet Street on a normal day, they wouldn't be there or will be sitting around playing solitaire.


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  • Registered Users Posts: 26,056 ✭✭✭✭Peregrinus


    perhaps that 15% is the cost of running the charity i.e. their admin costs?
    Sunshinenews' claim was that . . .
    sunshinew wrote: »
    the majority of the big ones keep all costs, staff, admin etc, below 15% of spend . . .
    And OSI refuted this by posting details of several charities whose staff costs alone were well over 15% (though admin costs alone were well below 15%).

    I don't think it can (or should) be correct for a charity that's primarily engaged in direct service provision (which is a lot of them) that staff costs, with or without other costs, should be below 15%. On the contrary, in fact; if staff costs were that low it should ring alarm bells.

    Which makes the point that you can't adopt a one-size-fits all rule for how charities should be allocationg their spending as between staff, premises, etc. It entirely depends on what activities the charity pursues. It makes no more sense to do this for "charities" than it would for "businesses".


  • Registered Users Posts: 40,153 ✭✭✭✭ohnonotgmail


    Peregrinus wrote: »
    Sunshinenews' claim was that . . .

    And OSI refuted this by posting details of several charities whose staff costs alone were well over 15% (though admin costs alone were well below 15%).

    I don't think it can (or should) be correct for a charity that's primarily engaged in direct service provision (which is a lot of them) that staff costs, with or without other costs, should be below 15%. On the contrary, in fact; if staff costs were that low it should ring alarm bells.

    we need to differentiate between the staff costs for providing the charities services and staff costs for running the charity.


  • Registered Users Posts: 26,056 ✭✭✭✭Peregrinus


    we need to differentiate between the staff costs for providing the charities services and staff costs for running the charity.
    I'm not sure that's a bright-line distinction. Imagine a charity that employs social workers to assess and counsel clients, managers to manage the social workers, trainers to maintain the social workers' professional skills, childcare workers to care for clients' children while they are being counselled by the social workers and other staff whose role is to liaise with the funders - a government department, say - to agree what services the charity will provide, to what client group, and at what cost,and to satisfy the funder that the charity is delivering as agreed. Which of these staff costs are "costs for providing the charities services" and which are "costs for running the charity"?


  • Registered Users Posts: 6,433 ✭✭✭touts


    manonboard wrote: »
    Your solution though, results in a super charity?

    It would provide no alternatives to the public, likely become more corrupt, and also force alot of people who work to help others out of a job?

    Hard to see how it could possibly become more corrupt than the current charity industry. You're no one in Dublin 4 if your Accountant hasn't set up a charity for you or your spouse to be the CEO of.


  • Registered Users Posts: 26,283 ✭✭✭✭Eric Cartman


    A large section of their funding comes from Government. Politicians are setting themselves up for their job if they ever lose their seats.

    When you look into a lot of them, they are hangovers of when Labour were in power with FG.

    I keep on highlighting Spunout.ie. Founded by Ruiri McKiernan who was on President Higgins (Labour) Council of State. One of the directors was Chris Donoghue (formerly Newstalk, now FG).

    This is their income

    Income-Chart-2018_200420_165123.png?mtime=20200420175126&focal=none

    This is their spending
    Expenditure-Chart-2018_200420_165011.png?mtime=20200420175013&focal=none

    They raise about 110k themselves and the other 500k+ comes from Government.

    What do we get for it?

    About 20% goes on "Operations" and Youth Activity. The rest goes on wages and running the company. They get **** all Social Media Interactions.
    https://twitter.com/SpunOut?s=09
    It's most the same person liking a retweeting the posts. (he works there BTW)

    I would imagine if we turned up at Spunout.ie HQ over at Fleet Street on a normal day, they wouldn't be there or will be sitting around playing solitaire.
    they share a building with amnesty international and a few other charities, the staff work between them, its just Colm o Gormans pockets being lined.


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  • Closed Accounts Posts: 2,281 ✭✭✭CrankyHaus


    Couldn't find the article online but there was a piece in the Sunday Times a few weeks ago about a small charity with serious financial issues, including the staff taking funds to pay for their lifestyle. It had the same people in charge for about 2 decades and is funded by the taxpayers, the vast majority of whom will never know of its existence.


  • Registered Users Posts: 111 ✭✭sunshinew


    Peregrinus wrote: »
    Sunshinenews' claim was that . . .

    And OSI refuted this by posting details of several charities whose staff costs alone were well over 15% (though admin costs alone were well below 15%).

    I don't think it can (or should) be correct for a charity that's primarily engaged in direct service provision (which is a lot of them) that staff costs, with or without other costs, should be below 15%. On the contrary, in fact; if staff costs were that low it should ring alarm bells.

    Which makes the point that you can't adopt a one-size-fits all rule for how charities should be allocating their spending as between staff, premises, etc. It entirely depends on what activities the charity pursues. It makes no more sense to do this for "charities" than it would for "businesses".

    Yes, I clarified this in a later post... 15% on admin and fundraising staff - 85% on service costs which would include staff providing the service, nurses, counsellors etc.


  • Registered Users Posts: 6,433 ✭✭✭touts


    Allinall wrote: »
    Where’s the scam?

    €100k plus a year for the CEO. Massive admin costs. That's pretty standard in the Charity Industry. And now we have 6 charities that all basically do the same thing coming together to set up another organisation to look for more money from the public? Running a charity is the biggest scam going in upper class parts of Dublin.


  • Registered Users Posts: 13,072 ✭✭✭✭Geuze


    Just what we need. More charities.

    There are over 10,000 now.

    I wonder do NL, BEL, DE, DK have tens of thousands like us?


  • Registered Users Posts: 12,033 ✭✭✭✭Richard Hillman


    they share a building with amnesty international and a few other charities, the staff work between them, its just Colm o Gormans pockets being lined.

    Ah, I didn't know that. Amnestys method of saying "we don't take government funding", except through the backdoor.


  • Closed Accounts Posts: 3,445 ✭✭✭Rodney Bathgate


    crossman47 wrote: »
    If he/she was good enough to do the job well, whats the problem?

    Not many industries where you go from not having worked in the sector and not having held a senior position in any sector, to being a CEO, overnight.


  • Registered Users Posts: 40,153 ✭✭✭✭ohnonotgmail


    Peregrinus wrote: »
    I'm not sure that's a bright-line distinction. Imagine a charity that employs social workers to assess and counsel clients, managers to manage the social workers, trainers to maintain the social workers' professional skills, childcare workers to care for clients' children while they are being counselled by the social workers and other staff whose role is to liaise with the funders - a government department, say - to agree what services the charity will provide, to what client group, and at what cost,and to satisfy the funder that the charity is delivering as agreed. Which of these staff costs are "costs for providing the charities services" and which are "costs for running the charity"?

    all excellent questions that i will not attempt to answer.


  • Closed Accounts Posts: 3,445 ✭✭✭Rodney Bathgate


    Ah, I didn't know that. Amnestys method of saying "we don't take government funding", except through the backdoor.

    Plus the foreign funding. But foreign ‘interference’ is okay when it isn’t Putins money.


  • Registered Users Posts: 19,802 ✭✭✭✭suicide_circus


    The issue is less the ceo salaries and more the duplication and bloat.

    A CEO on 100k running a foreign aid charity - no issue.

    20 CEOs on 100k running 20 foreign aid charities - that's an issue.


  • Registered Users Posts: 26,283 ✭✭✭✭Eric Cartman


    The issue is less the ceo salaries and more the duplication and bloat.

    A CEO on 100k running a foreign aid charity - no issue.

    20 CEOs on 100k running 20 foreign aid charities - that's an issue.

    and the ever more likely 1 CEO running 3 charities on 100k per charity all from the same desk.


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  • Registered Users Posts: 2,045 ✭✭✭silver2020


    Here’s one to get you started. https://www.focusireland.ie/wp-content/uploads/2016/08/Signed-Focus-Ireland-consolidated-Financial-statements-31-Dec-2016.pdf

    Just google financial statements of any charity. They make depressing reading!

    You probably picked the wrong one to highlight. Focus Ireland is one of the better ones.

    Directors and trustees get ZERO payment. Chief Exec gets €115k which is not outrageous considering a similar position in a similar sized private company would be well in excess of €150k and pension contribution are 7% - again much lower than private companies.


    But there is far too much overlap on charities especially in the homeless sector. So a culling on the number of charities is probably something that should be looked at.


  • Registered Users Posts: 12,195 ✭✭✭✭Calahonda52


    touts wrote: »
    ... now we have 6 charities that all basically do the same thing coming together to set up another organisation to look for more money from the public? Running a charity is the biggest scam going in upper class parts of Dublin.

    This and your opening post is a complete distortion of the facts of the article.

    I just wonder did the 20 or so fan boys who thanked you actually read the article.

    I am not taking issue with the funding/costs model, just the suggestion that is a 7th

    "Six of Ireland’s leading international charities have formed a new alliance to respond to the coronavirus pandemic and assist some of the most vulnerable communities around the world.

    The Irish Emergency Alliance - made up of ActionAid, Christian Aid, Plan International, Self Help Africa, Tearfund and World Vision -will jointly raise money from the Irish public to assist countries who are “already struggling to cope with the impact of conflict and displacement”.

    Any thoughts on this piece, which is equally, if not more relevant than the funding/costs model:

    The coronavirus appeal will focus on vulnerable communities in Afghanistan, Democratic Republic of Congo and South Sudan, all coping with the impact of widescale conflict, as well as Ethiopia, Kenya, Lebanon and the Rohingya refugee camps of Cox’s Bazar in Bangladesh.

    “I can’t pay my staff or mortgage with instagram likes”.



  • Registered Users Posts: 19,802 ✭✭✭✭suicide_circus


    €7.7bn of the irish charity industry's €14.5bn annual income comes from the government so if you pay tax you can be happy in the knowledge that you are already contributing.


  • Registered Users Posts: 27,194 ✭✭✭✭blanch152


    The issue is less the ceo salaries and more the duplication and bloat.

    A CEO on 100k running a foreign aid charity - no issue.

    20 CEOs on 100k running 20 foreign aid charities - that's an issue.

    Correct, and that is a particular problem with the poverty industry. For example why Trocaire and Concern, not to mention many others?

    It is difficult to keep count on the homelessness side, where it appears that they are coming close to promoting homelessness.


  • Registered Users Posts: 19,802 ✭✭✭✭suicide_circus


    "Homelessness charity finds that there is lots of homelessness"

    "Racism charity finds that there is lots of racism"

    Etc, etc

    Remember, 189,000 people are employed in this industry.


  • Closed Accounts Posts: 3,445 ✭✭✭Rodney Bathgate


    "Homelessness charity finds that there is lots of homelessness"

    "Racism charity finds that there is lots of racism"

    Etc, etc

    Remember, 189,000 people are employed in this industry.

    In other news, turkeys vote to cancel Christmas.


  • Registered Users Posts: 13,072 ✭✭✭✭Geuze


    Any thoughts on this piece, which is equally, if not more relevant than the funding/costs model:

    The coronavirus appeal will focus on vulnerable communities in Afghanistan, Democratic Republic of Congo and South Sudan, all coping with the impact of widescale conflict, as well as Ethiopia, Kenya, Lebanon and the Rohingya refugee camps of Cox’s Bazar in Bangladesh.

    Ethiopia has an Air Force with 24 combat aircraft.

    Our Aer Corps has no combat aircraft, AFAIK.

    Their Army has battle tanks, AFAIK we have none.


    And we are expected to pay them charity?!!


  • Registered Users Posts: 2,419 ✭✭✭antix80


    touts wrote: »
    Listening to Morning Ireland I was disappointed but not really surprised to see what was referred to as six "rival charities" have come together to form yet another charity (a super charity of sorts) to encourage Irish people to donate more money to them.

    I don't see any mention of a super-charity with an extra CEO.

    It sounds like they're actually trying to cut down on advertising and admin costs for this particular "alliance".. the organisations likely have people on-the-ground in those countries, but may not have sufficient infrastructure for fundraising/advertising/processing and distributing donations.

    Seems more likely this will cut down on admin costs rather than increase them. One ad campaign instead of 5.

    I don't know how you twisted the article so much to suit whatever narrative you're pedalling. I don't know much about these charities but from the names I think they're Christian ethos charities so that might be why you're so negative about them.


  • Registered Users Posts: 19,802 ✭✭✭✭suicide_circus


    ^^^^ but surely the very fact these charities are coming together to achieve these efficiencies proves the point being made?


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  • Registered Users Posts: 40,153 ✭✭✭✭ohnonotgmail


    complains that there are too many charities with overlapping expenses and then complains when charities come together to save costs. Never change Boards.ie, never change


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