# Charity in crisis over costs

- Link: https://fundraising.co.uk/2006/05/17/charity-crisis-over-costs/
- Published: 2006-05-17T23:00:00+01:00
- Author: Howard Lake

A leading Irish Third World charity is in crisis after it emerged that close to 
a quarter of the charity’s overall budget, most of which is grant aid from the Government,
was spent on administration and fundraising costs. Self Help Development International
had a budget of ‚€4.1m for its work providing famine and poverty relief in five 
African countries in 2004, but spent ‚€925,049 of this on “management, administration,
fundraising and promotion” costs.

The revelation has led to bitter in-fighting at Self Help and former company members
are seeking to overthrow the current board. In a further blow to the charity, a 
number of wealthy patrons have walked away and set up their own aid organisations.

The most recent accounting figures show more than ‚€1.3m was raised for Self Help
from public donations in 2004 and the ‚€925,049 administration and fundraising cost
was taken directly from this money.

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Sports presenter Tracy Piggott raised ‚€70,000 for Self Help at a star-studded ball
last year, but left the aid organisation shortly afterwards to set up her own charity
Playing for Life where all the administration costs have been met out of her own
pocket.

The charity boasts on its website: “Donations, large and small, are being utilised
in the most cost-effective ways.” But some supporters were annoyed to discover that
the financial statement for 2004 showed ‚€143,087 was spent on the charity’s ’20th
anniversary expenditure’.

The charity received more than ‚€2.4m of taxpayers’ money from a Government grant,
and just over ‚€300,000 directly from other charities, in 2004. But a legal stipulation
means a maximum of four per cent of the Government grant can be spent on administration,
meaning at least ‚€828,000 of the ‚€925,049 administration costs for the Irish office
had to be taken directly from money donated by the Irish public.

Property developer Jarlath Sweeney is one of a number of high-profile supporters
who have recently become disillusioned by the Irish charity’s management style and
administration costs. Mr Sweeney was so outraged by the high administration costs
he and businessman Dermot Divilly set up their own charity the Support Africa Foundation
which they have promised will deliver 100 per cent of the funds it raises directly
to Africa.

As the first ever GAA Charity of the Year, Self Help is particularly well supported
in rural areas where it enjoyed the backing of all the country’s main farming organisations.
A GAA spokesman said that if there were any administration problems they would review
their involvement.

Self Help was founded in response to the Ethiopian famine of 1984 by Dr Noel McDonagh
and missionary priest Fr Eoin Lambert. Dr McDonagh retired as board chairman in 
March and his daughter Hilary McDonagh is the CEO.

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