Wealthy individuals who want to "give something back" are being encouraged to set up their own charitable trusts or foundations by a new organisation established to promote the concept of philanthropy in the Republic.
Philanthropy Ireland, a not-for-profit limited company, offers referrals to legal experts, tax advisers and asset managers working in the area as well as providing a free advice service on topics such as picking the right trust structure, selecting trustees and criteria for grants.
"The wealth in Ireland is very recent - we don't have a great history of inherited wealth - and people who have accumulated wealth quite quickly often don't have a lot of experience with money and they sometimes have difficulty managing it," says Mr David Strahan, director of Philanthropy Ireland.
"Naturally they are inundated with requests from charitable organisations to give them money and it's hard for them to handle that. But if there is a properly established Revenue-approved trust, that takes a lot of the heat away from them."
Setting up a trust is a way for individuals to think strategically about what they want to achieve.
"Some people who have the capacity might simply want to donate to the St Vincent de Paul or the homeless. But by setting up a private trust, they can help alleviate other, new issues that are not being dealt with by State funding or through the voluntary sector," says Mr Strahan, a former chief executive of the Barretstown Gang Camp Fund.
Barretstown, which provides recreational facilities to children diagnosed with serious illnesses, was founded by the actor Paul Newman, who kick-started the fund with a $2 million (€1.63 million) donation.
Philanthropists want to know how their money is working and see tangible results from their investment, says Mr Strahan, who agrees that charity donors are sometimes concerned by a lack of transparency about where their funds are actually going.
An individual who sets up a trust will typically retain personal involvement and appoint family members to the board of trustees, he notes.
Philanthropy Ireland is also hoping that Irish companies will match the corporate social responsibility efforts of their UK and US counterparts.
"You could see it in a slightly jaundiced way and say they are doing it for branding purposes," says Mr Strahan. But even paying lip service to the idea can have great effects, he says, citing corporate sponsorship of last year's Special Olympics.
The concept of philanthropy is popular in Government circles.
The Tánaiste said last month that she would like to encourage a greater culture of philanthropy here, similar to that which exists in the US.
Philanthropy Ireland can be contacted at 01-2145371 or info@ philanthropyireland.ie. Further information is available at www.philanthropyireland.ie.
