Ireland's Charity Sector: Stability Amidst a Storm of Challenges

As 2024 comes to a close, I find myself reflecting on where Ireland's nonprofit sector stands—and it’s clear we’re at a crossroads. On one hand, we’re fortunate to have political stability, something that feels increasingly rare in today’s world. On the other hand, the sector is grappling with skyrocketing demand for services, a funding landscape that’s far from sustainable, and a public that’s understandably fatigued by an endless stream of crises. Let’s unpack this.

2024: The Year of Relentless Demand

The cost-of-living crisis has hit hard. Homelessness is climbing, poverty is everywhere, and displaced people—whether due to conflict or climate change—are turning to charities for help. Yet the resources to meet these challenges are stretched thinner than ever.

Here’s the paradox: the government relies heavily on charities to tackle these systemic issues but stops short of truly acknowledging the sector’s vital role. Funding is still piecemeal and reactionary. For a country with some of the strongest governance and transparency standards for charities, this blind spot is glaring. Charities don’t just need recognition; they need sustainable funding commitments that allow them to focus on creating impact, not just surviving.

There’s another issue—the nonprofit sector has a branding problem. The term "not-for-profit" feels small, passive, and under-resourced—everything charities shouldn’t be. I’m seeing conversations start to pivot toward a "profit for purpose" ethos, which reframes charities as professional, impact-driven powerhouses tackling society’s most complex challenges. It’s a conversation we need to have more loudly. This isn’t just about optics; it’s about survival. If we don’t own this narrative, we risk being stuck in a cycle of undervaluation and underfunding. It’s time to ditch the old playbook.

2025: Opportunity in Crisis

Looking ahead to 2025, one thing is certain: the challenges aren’t going anywhere. Inflation and economic uncertainty will continue to squeeze household budgets, limiting traditional giving. At the same time, the need for services will grow. And recruitment and retention of staff will remain a significant hurdle. How do we compete with the private sector on pay and conditions while asking people to deliver so much more?

But there’s an opportunity here, too. Ireland’s nonprofit sector is one of the most heavily regulated in the world, and we should celebrate that. Transparency and governance aren’t just buzzwords—they’re the foundation of trust. By leaning into these strengths, we can differentiate ourselves and attract both domestic and international funding.

We also need to change the conversation around giving. Donors need to see the transformative impact of their support, not just a breakdown of administrative costs. It’s the charities that focus on outcomes—solved problems, changed lives—that will thrive.

Europe’s Nonprofit Sector: A Shared Challenge

Zooming out, it’s clear the challenges we face in Ireland are mirrored across Europe. Climate change, displacement, and inequality are escalating, and nonprofits are increasingly expected to pick up the slack. Yet governments often fail to integrate the sector into broader solutions, treating charities as stopgaps rather than strategic partners.

The solution lies in collaboration. Cross-border partnerships, shared technology, and unified advocacy can amplify the sector’s voice and impact. But we also need to get better at telling our story. Impact isn’t just something you measure—it’s something you market. The organisations that own their narrative will be the ones that not only survive but lead.

A Call to Action

As we step into 2025, the nonprofit sector in Ireland—and across Europe—has to evolve. This isn’t just about getting through the next crisis; it’s about building a sustainable model that delivers long-term impact. That means shifting the perception of charities from "alms for the poor" to essential partners in solving society’s toughest problems.

We need to demand more—from the government, from donors, and from ourselves. Because if we don’t advocate for our own value, who will?

Scott Kelley
Chief Operating Officer
Charities Institute Ireland
scott@charitiesinstitute.ie