Cii calls for investment in Ireland’s social infrastructure in Budget 2027

Charities Institute Ireland (Cii) has published its Pre-Budget Submission 2027, Investing in Ireland’s Social Infrastructure, setting out six practical recommendations aimed at strengthening the organisations that Government and communities rely on to deliver essential services.

At the heart of the submission is a simple argument: Ireland’s charities are not peripheral to the economy. They are part of the country’s social infrastructure, providing essential services, supporting participation in society and employment, strengthening communities and helping to prevent problems from escalating into more costly crises. Pre Budget Submission 2027

The submission argues that charities should be regarded as delivery partners rather than simply recipients of grants. Alongside public funding, charities bring fundraising, philanthropy, volunteering, expertise and community trust to the delivery of public benefit. Cii’s latest research found that registered charities generated €1.64 billion in voluntary income in 2024, providing additional private and philanthropic resources alongside State investment. Pre Budget Submission 2027

Six priorities for Budget 2027

Cii is proposing a package of measures representing an additional €53 million investment in the sector. The six recommendations are:

1. Full-cost funding – €20 million: Introduce a cross-government Full-Cost Funding Standard, supported by a Social Infrastructure Capacity Fund, recognising governance, compliance, insurance, digital infrastructure and organisational capacity as legitimate costs of delivering services.
2. VAT compensation – €10 million: Increase the Charities VAT Compensation Scheme from €10 million to €20 million, allowing more charitable and public funding to reach its intended purpose rather than being lost through irrecoverable VAT.
3. Governance and organisational capacity – €6 million: Support governance systems, trustee recruitment, audit readiness and regulatory compliance.
4. Digital productivity and workforce – €4 million: Invest in digital transformation, cybersecurity, AI readiness and workforce capability, while ensuring charities can access mainstream productivity and training supports available to other employers.
5. Unlocking philanthropy – €11 million: Retain the existing Charitable Donation Scheme while introducing a capped pilot tax incentive aimed at encouraging major philanthropic gifts.
6. Better data – €2 million: Invest in improved economic data on the charity sector through the Central Statistics Office, Charities Regulator and research partners, supporting better policy evaluation and strategic planning. Pre Budget Submission 2027

Recognising the true cost of delivering services

A central concern highlighted by Cii is not simply the level of State funding available to charities, but how that funding is designed.

Many charities are expected to meet increasingly demanding standards in areas such as governance, reporting, safeguarding, financial management and compliance while funding agreements do not always recognise the cost of maintaining that infrastructure. This can result in unrestricted donations being used to subsidise the delivery of publicly funded services. Pre Budget Submission 2027

Cii argues that governance, technology, people and organisational capacity should not be regarded as optional overheads. They are fundamental to delivering safe, effective and sustainable services and to protecting public investment.

Investing in economic participation and resilience

The submission deliberately frames investment in charities as an economic as well as a social issue.

Charities provide services across health, disability, education, housing, homelessness, poverty, family support, culture and community development. Their work can help people remain in or return to employment, enable people with disabilities to participate more fully in society and support older people to live independently. Pre Budget Submission 2027

They can also play an important preventative role. The submission points to areas such as homelessness prevention, community mental health services and supports for independent living, where earlier intervention can reduce the need for more intensive State responses later. Pre Budget Submission 2027

That focus on delivery capacity and effective use of public resources also reflects wider Government priorities around governance, capacity and public-service effectiveness. Where Your Money Goes

A different relationship between Government and charities

Cii’s submission calls for a shift away from viewing charities primarily through the lens of grants and towards recognising them as strategic partners in delivering national priorities.

Government already relies extensively on charities in areas including health, disability, homelessness, ageing and community services. Cii argues that public policy should therefore ensure those organisations have the resources, systems and capacity required to deliver sustainably.

As the submission concludes, the proposed measures are intended not as special treatment for charities, but as investment in Ireland’s ability to deliver services, strengthen communities and build a more resilient economy. Pre Budget Submission 2027

Read Cii’s full Pre-Budget Submission 2027: Investing in Ireland’s Social Infrastructure.