The Department of Public Expenditure and Reform (DPER) has provided grant funding to Benefacts since 2015. The project was funded as a pathfinder initiative in the area of data analytics on the non-profit sector. Benefacts was initially co-funded with philanthropy, however in recent years the Department has been providing the majority of funding to the entity.
In 2019, my Department commissioned an independent report to provide analysis of the market for data on the non-profit sector. This report examined, inter alia, issues around the demand for the data concerned; methodologies and technologies used; the potential for direct provision by the State of these services itself, and; the maturity of the market to provide these services efficiently. On foot of this report, my Department decided in 2020 that the business case for its continued funding of Benefacts was no longer justified and accordingly the decision was made to terminate funding. This decision was notified to the Chairperson of the Board of Benefacts and other relevant stakeholders from June 2020.
It was originally intended to terminate the funding arrangement in December 2020 but, in recognition that other public service bodies with direct policy involvement in the not-for-profit sector may have wished to consider whether they had an appreciable business case to continue funding Benefacts, my Department agreed to fund the initiative up to the end of 2021. This provision was made to facilitate relevant public service bodies to consider their position and to assess all of the options in relation to their respective business needs concerning data on the not-for-profit sector.
In April 2021, my Department reaffirmed its 2020 decision to relevant parties concerned. Furthermore, in acknowledgment of the impact of Covid-19 on this deliberative process, a final three month extension of funding up to the 31st March 2022 was sanctioned late last year. As of February 2022, no department or agency has identified an appreciable business to fund the service.
I understand Benefacts did raise the possibility of alternative institutional and governance arrangements, however these proposals did not address all of the key matters identified in the review undertaken in 2020.
The factors influencing the original decision from 2020 have not changed materially and, consequently, the decision of my Department to terminate the funding remains unaltered. My officials are continuing to work closely with the staff and Board of Benefacts to ensure that all necessary requirements as part of its cessation plan can be met.
My Department understands that the Department of Rural and Community Development have indicated a willingness to explore whether a need to develop a different database for not-for-profit sector exists, in addition to the database already provided by the Charities Regulator. Issues in relation to any such potential proposal are a matter for the Department of Rural and Community Development.
