Non-profit funding must increase to solve recruitment crisis
Seventy per cent of services are delivered by independent community voluntary organisations – many of them paid for by the state, says Ivan Cooper of The Wheel
Funding for non-profits needs to increase to address the recruitment and retention crisis in the sector, says Ivan Cooper, chief executive of The Wheel.
Seventy per cent of services in Ireland are delivered by independent community voluntary organisations, and many of them are in large part funded by the state. Mr Cooper said that the most pressing issues for The Wheel’s members are the lack of funding and the pay and retention crisis.
“Charities are experiencing a recruitment and retention crisis. we have instances now where some members have 30 per cent staff turnover rates. It is hard to hold on to good staff in current economic environment. The sector needs a national workforce development strategy funded through the national training fund.”
A retention crisis in a challenging environment can be very disheartening for employers, given the effect on almost every aspect of a charity’s work. Any employee leaving a charity will take valuable knowledge and experience with them, which can be hard to replace during a recruitment crisis.
“Wage cuts imposed after the economic crash over a decade ago – and reversed elsewhere – remain in place for hundreds of section 39, 56 and 10 charities, putting services at risk. Finding ways to reduce staff turnover is a key focus for many,” he said.
The Wheel is Ireland’s national association of charities. Its membership includes over 2,200 charities, community groups and social enterprises. The Wheel is a representative voice and a supportive resource that offers advice, training, influence and advocacy for the non-profit sector.
Charities working in areas like health, disability and home care may be unable to deliver many services in the coming months due to a staffing crisis directly linked to funding shortfalls from the government, added Mr Cooper.
“Enforced pay disparities of 10 per cent and more below that paid to equivalent staff in state agencies like the HSE mean charities simply can no longer recruit and retain qualified staff.
“We have, at last, an agreement that this matter be addressed by the Workplace Relations Commission (WRC). But unless the WRC produces a speedy and meaningful outcome, essential public services to the most vulnerable in our society will be in immediate jeopardy.”
Mr Cooper said: “The state has for many decades relied on charities to deliver almost one-third of all public services in key areas like health, children, older people, disability, addiction and homelessness.
“It knows we can, and do, deliver. Yet wage cuts imposed after the economic crash over a decade ago – and reversed elsewhere – remain in place for hundreds of section 39, 56 and 10 charities, putting services at risk.
“Addressing the issue of adequate and fair resources would remove a major blockage to ensuring the sustainability of our sector.”
Provide certainty
This would also include the introduction of multi-annual funding to provide certainty to service delivery as well as measures to assist fundraising charities, such as enhanced measures on philanthropy and realistic allocations to the Charity Vat Compensation Scheme.
“It would allow us to build on our sector’s partnership with the government during the Covid-19 pandemic, our response to the war in Ukraine and the more general overall contribution to maintaining the fabric of Irish society,” he added.
“Most importantly, it would deliver on the spirit and ambition contained in the government’s Values and Principles for Collaboration and Partnership Working with Community and Voluntary Sector last year and on the more recent recommendations arising from the Dialogue Forum for Voluntary Organisations.”
Working towards these goals, in partnership with the government, will be the prime focus of The Wheel in the immediate years ahead, said Mr Cooper.
“The charity and community sector in its many iterations and through tens of thousands of volunteers, staff and volunteer board members can contribute even more to our society in future.
“We must all try to learn from the innovative and flexible methods of working between government, state agencies, charities and community organisations during the Covid crisis. Our society currently continues to face many serious difficulties and challenges including climate change, migration needs, digital transformation and the green transition.
“All these issues require continued, similar innovation and flexibility,” he said.
“Summit 2023 was a unique opportunity to come together, share ideas and best practices, and explore how we can collectively and collaboratively tackle these challenges and release the energy, commitment and innovation in our organisations.”
Mr Cooper said that The Wheel’s recent summit heard from a diverse range of experts, thought leaders and activists, who provided insights and perspectives on the key issues facing civil society, our organisations and the people they serve. Topics explored included sustainable public services, the need for charities to tell the story of their impact, and opportunities for greater collaboration.
“One of the highlights of the programme was the presentation of Dr Mary Redmond Honorary Award. This accolade is awarded by The Wheel’s board of directors to a person (or persons) who has made an extraordinary contribution to civil society in Ireland. The award is named after Dr Mary Redmond, the late academic, lawyer and founder of The Wheel and the Irish Hospice Foundation.”
Social Justice Ireland co-founders Dr Seán Healy and Sr Brigid Reynolds were this year’s winners for their outstanding commitment to promoting social justice for nearly half a century. Dr Healy and Sr Brigid have been Director and Company Secretary of the independent social justice think-tank since its foundation in 2009. They will both retire later this year.
"We see an opportunity. We are very responsive organisations, well connected in local communities. Our services can be flexible and complement a person centered approach to providing support,” Mr Cooper added.
“However, the not for profit sector needs pay parity with public sector staff. Funding must be provided on a muti annual basis so that charities can plan their services into the future. We’ve seen a welcome increase in the regulation of charities, but this means increased compliance for the sector. The sector must be allocated funding to assist with this extra workload.
“Finally, we would like to see the National Training Fund used to upskill our sector’s employees so that every charity has comprehensive training options available to their staff, board members and volunteers.”
