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The Retail News Interview Des Redmond, Development Director, IGBF.
Charity Begins in the Store The Irish Grocers Benevolent Fund urgently needs the support of retailers to ensure that the 300 families in distress who are assisted by the Fund continue to receive support. Des Redmond, Development Director, IGBF, details the Fund’s current deficit. THE Irish Grocers Benevolent Fund (IGBF) is facing a challenging and threatening scenario due to a mounting cumulative deficit which threatens its ability to continue to support nearly 300 families monthly. The IGBF is currently donating in excess of six figures annually more in grants than it receives in funding. It doesn’t take a maths genius to realise
that this situation is unsustainable. Des Redmond, the newly appointed Development Director with the IGBF, knows the size of the task ahead of him. “There are up to 7,000 charities in the country, including a lot of small charities set up by individuals for their own legitimate and personal causes,” Redmond reveals. “It’s a very frag-
mented and uncoordinated sector. But thankfully, there will be increasing governance and transparency in the charity sector over the coming months and years with the advent of the Charities Act, which is long overdue. To operate successfully in this sector, charities, particularly the larger ones, have generally become more professional in what they do and how they present and
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The Retail News Interview ing enormous difficulties in continuing the valuable work carried out by the IGBF. “Our income has declined by about 30% over the last five market themselves.” The IGBF is no exception. “The IGBF has been somewhat dormant in that it never fully promoted itself extensively as a registered charity for retailers and suppliers,” Redmond admits. “What it did do, though, is a hell of a lot of good work, since the days when before H. Williams collapsed and right through the various crises in our industry up to the present day. The IGBF currently helps almost 300 families a month, right across the country, from both the retail and the supply trade sectors. “It could be something as basic as somebody needing central heating oil this winter, or it could be a case where the breadwinner in the house is terminally ill with dependents and little or no income coming in. There is a very broad spectrum of people with wide ranging needs who we assist. Applications are made to the National Welfare Committee in Dublin, who then discuss the merits of each case and decide on who gets assistance and what form that assistance will take.”
Developing a Sustainable Charity
In terms of granting money, the IGBF generally donates over a half million euro to beneficiaries each year. Up to about five years ago, income exceeded donations annually, so the amount of people who needed their help wasn’t an issue. Now, however, the IGBF is faced with year-on-year income declines, which present a major issue going forward. While Redmond acknowledges that the IGBF took in more money than it donated during the high growth years and was astute enough to bank the difference, the last five years have seen the charity operating at a deficit each year to the present day. Such a deficit is present-
“Our mission is, quite simply, to enhance the lives of those in the grocery trade who need help. It is as simple or as complicated, as broad or as narrow, as you want to make that.”
years, which is frightening enough in itself, but it is not as bad as some charities, who are generating funds 45% lower than when they were at their peak,” Redmond reveals. “But we still have a situation of annual deficits and that can’t go on forever as it is simply not sustainable.”
Extensive Marketing Experience
Getting the IGBF back on an even keel will not be easy. Redmond was brought in to utilise his extensive marketing experience to raise awareness of the IGBF and its work. Having served as SPAR’s Marketing Manager for nearly a decade and most recently, Country Marketing Manager at Boots Ireland, Redmond is ready and welcomes the challenge. “If we are a charity for the grocery sector, including retailers and suppliers, there is an onus on everybody within that sector to participate, so my first job was to create awareness aimed at both suppliers and retailers that the IGBF is your charity,” he says. “This is a retail and supply charity, with seven regional committees across the country, which is helping your colleagues.” He quickly set about revamping the IGBF’s logo, which incorporates a new tag line – ‘Your Charity - Your Colleagues’, followed quickly by the launch of a brand new website, www. igbf.ie. “The website gives a full background of what we’re about, our mission and our values, along with details of the voluntary nature of the IGBF,” he explains. “It also has a facility for people to donate online. It explains how people can apply for assistance if they need it, as well as highlighting upcoming events.” While visitor numbers aren’t available for the new look website yet, anecdotal evidence suggests a huge surge in visitor numbers in the two months since it went live. “The next stage is to establish a supplier database, which the regional committees can access to assist in raising income, while we will also have a regular e-newsletter starting in the New Year,” Redmond reveals.
Friend of the Fund ‘Friend of the Fund’ is a new appeal to retailers to make either a standing order or a once-off donation to the Fund.
November sees the launch of ‘Friend of the Fund’, which is “an appeal to retailers,
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The Retail News Interview particularly symbol group retailers, to make either a standing order or a once-off donation to the Fund. “This is the start of our engagement process with retailers and hopefully retailers will appreciate the importance of how valuable their contributions will be,” Redmond stresses. The Friend of the Fund campaign comprises an appeals letter detailing the work of the IGBF and its need to raise much needed income to continue its work, highlighting a number of case studies from around the country, while obviously maintaining the confidentiality of those in receiptof funds. “We now look like a professional registered charity in the modern era and we’re starting to act like such a body in terms of charity marketing,” Redmond notes. “Our next goal is to build the IGBF as a brand, where we build empathy and an emotional attachment with retailers, because that is an area where greater engagement is needed. “So what is our mission? Unfortunately we’re not going to save lives or find a cure for cancer. Our mission is, quite simply, to enhance the lives of those in the grocery trade who need help. It is as simple or as complicated, as broad or as narrow, as you want to make that.” Redmond pays tribute to the “sterling work” of the original founders of the IGBF, the current President of Appeals, Leonard Hegarty, and the national and regional committees who have been instrumental in the success to date, but stresses that the IGBF needs to attract more funding, faster, if it is to become, once again, a sustainable charity.
Developing New Funding Strands
With no governmental assistance received, the IGBF enjoys a strong and close relationship with traditional multiple and symbol group head offices, as well as with independent retailers, and would welcome greater participation by other retailers such as the German discounters and UK retailers operating in Ireland. Redmond reveals that they will also actively seek to target nonFMCG suppliers (telecoms companies, insurance companies, legal advisors etc), who enjoy a lot of business within the retail and grocery sector, as well as foodservice suppliers. Foundations and high net worth individuals, the Irish success stories in recent years, will also be invited to assist. “I think as a nation, corporately, we need to mature and increase our level of Corporate Social Responsibility funding in terms of a percentage of turnover, which lags behind the UK,”
he says. “Ireland is very generous on cause-related charities, but when it comes to planned giving, there is a lot more that could be done by corporations, foundations and indeed the Government. “We are extremely cognisant and appreciative of the assistance we receive and recognise the difficulties of the current trading environment but we are trying to ensure sustainable funding into the future, utilising a number of potential strands. At the end of the day, unless retailers and suppliers take responsibility for what is their own charity, it will place the Fund The new IGBF website, www.igbf.ie, has seen a surge in visitor numbers since it went live.
“The IGBF have never celebrated the success of what they have done over the years and they have not developed the emotional connection strongly enough: it is now time for that to start.” in a very difficult situation,” Redmond stresses. Annual events such as Golf outings, the President’s Ball and the Christmas Lunch have in the past and continue to make a significant contribution to the IGBF. While he acknowledges the contribution these events make to the Fund’s income, Redmond feels there is scope for more events of a social or sporting nature during the year, particularly at a local level, organised by the seven regional committees. “55-60% of our income comes during the last few months of the year, so there is a lot of scope for other events
during the rest of the year, including perhaps a midsummer ball, but the ideal scenario is to get retailers, suppliers and other donors to set up standing orders, which is where sustainable funding comes from.”
Making Difficult Decisions
Redmond is no idle dreamer, however. He knows just how tough business is for retailers in 2013. “I can appreciate the difficulties in the retail trade, but from our point of view, there are people who really need assistance and it is up to ourselves, retailers and suppliers, to help our own colleagues,” he says. “The Sword of Damocles can fall on any of us at any time. I know it’s difficult, but there is a reason why we’re doing what we are doing. There are only two employees in the IGBF, the rest of the committees are run on a totally voluntary basis. We don’t get a sausage from the Government. So we need assistance going forward.” Indeed, he reveals that the extent of the deficit has led to some difficult decisions being considered, “such as whether we can pay a Christmas bonus to the people who are being helped by the Fund this year.” “My role is to build the IGBF brand, reduce the deficit and develop that engagement with its core audience, because it is our colleagues who need the Fund’s assistance,” Redmond concludes. “The IGBF have never celebrated the success of what they have done over the years and they have not developed the emotional connection strongly enough: it is now time for that to start.”