ONE IN FOUR charities in Ireland are uncertain about whether they can sustain existing services due to financial difficulties.

A new report by The Wheel, the association for charities, reveals that a state funding gap combined with increased administration work is contributing to the crisis.

Only a quarter (27%) of the more than 100 charities surveyed receive multiannual funding from the government.

Dónall Geoghegan, director of policy and advocacy at The Wheel, said the sector is “stretched to its limits” and many charities are “surviving year to year” due to financial uncertainty.

“There have been rising costs over the last few years and, in some cases, there’s rising demand because of things like the cost of living crisis, so a significant number of organisations can’t cope,” he told The Journal.

Almost three-quarters (72%) of NGOs reported an increase in compliance and reporting requirements over the past year.

Many are required to submit the same data to multiple state bodies, such as the Charities Regulator, the Companies Registration Office, and the HSE.

Geoghegan said that while they “fully support” autoenrolment for pensions, it too demands more resources.

One in three (33%) charities said that they lack the capacity to meet new obligations.

Geoghegan said that state funding has not kept up with inflation, which is putting services at risk.

“[Charities] can’t be assured that they’ll be able to provide the service they’re providing next year, the year after that,” he said.

This not only affects service users, but employees.

It’s estimated that registered charities employ over 281,250 people, which is the equivalent of almost one in eight workers in Ireland. Meanwhile, NGOs contribute €32 billion annually to the Irish economy, The Wheel reports.

More than a third of organisations said they were struggling to recruit or retain staff, largely due to uncompetitive pay. Geoghegan said workers often leave the charity sector to take up similar roles in state bodies, where pay and conditions are better.

Roughly half of funding for charities comes from donations, while the rest comes from the state.

There has been a slight decrease in the amount donated, but Geoghegan says fluctuation is normal.