Former Fine Gael strategist Frank Flannery was paid €60,000-a-year by a charity in a campaign to seek tax changes from the Government to boost philanthropic donations from wealthy people.

The contract was with Philanthropy Ireland, an association of foundations which was a member of a forum chaired by Mr Flannery that brings State and private interests together to promote philanthropy.

Mr Flannery’s work for the Forum on Philanthropy was unpaid, but Philanthropy Ireland engaged him on a consultancy contract in mid-2012 to promote the forum’s blueprint to revive donations in the wake of the financial crisis.

The blueprint, published in 2011, included four tax reform proposals and a swathe of other measures to boost the fundraising capacity of charitable trusts and foundations.

However, Philanthropy Ireland executive director Séamus Mulconry said the taxation proposals were a “very small element” of the overall package. “We were more interested in his ability to reach out into corporate Ireland than into Government.”

The disclosure of the Philanthropy Ireland contract, which finished at the end of 2013, raises further questions about Mr Flannery’s lobbying activities, when his senior position in Fine Gael provided him with access to Cabinet and other Government figures.

In Brussels yesterday, Minister for Finance Michael Noonan acknowledged being lobbied by Mr Flannery in his capacity as forum chairman. However, he pointed out he chose not to introduce the tax measure sought.

“He was doing pro-bono work for a charity when he was talking to me,” Mr Noonan added. “He had a proposal which connected contributions to the charity to residency. He came in on a delegation, into Finance, and we took a copy of the proposal, but I sent it to the finance committee, and the finance committee had a full hearing on it and brought out a report,” he said.

“Actually the finance committee recommended that we would accept it, but when I looked at it myself I didn’t do anything in the Finance Bill to introduce it.”

Mr Noonan was speaking before Philantrophy Ireland last evening revealed details of Mr Flannery’s work for them.



Resignation

Mr Flannery resigned his unpaid posts in Fine Gael and his directorship of disability charity Rehab on Monday, two days after The Irish Times reported his professional lobbying of the Government on behalf of Rehab.

In the Dáil yesterday, Tánaiste Eamon Gilmore said Mr Flannery will also be stepping down from his position on the Forum of Philanthropy.

Mr Mulconry said Mr Flannery’s paid work for Philanthropy Ireland was approved by its main backers: the Atlantic Philanthropies foundation of American businessman Chuck Feeney; and the One Foundation of Declan Ryan, son of Ryanair founder, the late Tony Ryan.

Philanthropy Ireland said its board believed that implementation of the forum’s report was critical to funding of good causes and civil society. “To that end it approved the engagement of Mr Flannery on a consultancy contract of €60,000 per annum subject to the funding coming from the contributions of donor organisations (not the Exchequer),” the group said in a statement. “The board believed that Mr Flannery’s extensive experience and knowledge of the not-for-profit sector, the fundraising challenges it faced and his appreciation of the threat to the sector’s capacity to deliver services, uniquely positioned him to help drive the implementation of the forum report.”