IV. PUBLIC BENEFIT STATUS

NPOs in Ireland are not required to be established for the public benefit. Most NPOs, in fact, are established for the benefit of their members, including sporting and recreation clubs, professional bodies, political parties, trade unions, cooperatives, and credit unions. An NPO must be established for the public benefit, however, to be eligible for charitable status. All NPO forms discussed here—unincorporated associations, trusts, companies limited by guarantee, and designated activity companies—are eligible for charitable status if formed for a purpose that serves the public benefit.

The Charities Act 2009 establishes a new statutory governance regime for charities operating in Ireland and a new regulatory authority—the Charities Regulatory Authority (CRA)—to supervise the running of charities. The Act has a number of important features that affect a) the definition of charity in Ireland; b) the meaning of public benefit; and c) the determination of tax liability.

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E. POLITICAL ACTIVITIES

Charities: A charity can never be formed for the primary purpose of promoting a political cause. The Charities Act 2009 specifically excludes such bodies (along with political parties or bodies promoting a political party) from charitable status. However, a charity may promote a political cause when the promotion of that cause directly relates to the advancement of its charitable purposes (Charities Act 2009 Section 2(1)). In February 2018, the CRA issued further guidance in a publication titled “Guidance on Charities and the Promotion of Political Causes.”

Other NPOs: Other NPOs may freely engage in political and legislative activities subject to electoral law and broadcasting law restrictions.

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A body with charitable tax exemption will have a charity reference number (i.e., a “CHY” number) issued by the Revenue Commissioners. Under Sections 207 and 208 of the Taxes Consolidation Act 1997, the income of charitable bodies or trusts established for charitable purposes is exempt from income tax, subject to a number of conditions.

The Revenue Commissioners do not normally consider the following activities charitable:

Lobbying for the reform of law or political activities;

An organization whose main object is to benefit the members rather than a section of the community;

Provision of social and recreational activities;

An organization set up solely to fundraise; and

Illegal activities.