Opinion: The Real Challenge Facing Jersey’s Charities
In the face of the ongoing cost-of-living crisis, Jersey’s charities are being confronted by a tough set of challenges. Not only are donations declining, but the demand for their services is rising rapidly, operational costs are increasing, and fundraising has become significantly harder¹. Charities are burning through their funding reserves just to keep delivering for us¹.

Amidst this struggle, some narratives are emerging that can be unhelpful: that there are too many charities in Jersey, that they duplicate efforts, and that merging or collaborating more would be the simple solution to cutting costs.

To be absolutely clear, charities should always be open to challenge and be able to explain the value of the outcomes they deliver. If the narratives mentioned above are fair, well meant and would be likely to deliver a positive outcome then this is a good thing. However, if there is any risk of them being used as an excuse not to support the sector then they should be questioned. There is a danger that these narratives oversimplify the reality and risk undermining the essential work that charities do as well as discourage people from supporting the sector at such a critical time.

Please note that these comments are not aimed in any particular direction. The below are just a few narratives that I have heard recently and I feel compelled to offer a broad perspective in response.

Narrative: There Are Too Many Charities in Jersey
The numbers tell a different story.

Jurisdiction	No. of Charities	Population	No. of charities per 1000 people
Jersey	4742	103,6503	4.6
Guernsey	3304	64,7815	5.1
Isle of Man	6216	84,5307	7.3
United Kingdom	201,285 Registered charities*8	68,265,2099	2.9
	412,284 Estimated number of charities8		6.0

* this number excludes exempt/excepted charities and a large number of small charities with a annual income of under £5k

The number of charities is not the issue—it reflects the diverse and growing needs of our community. Every charity exists because there is a demand for its services i.e. if you think that there are a lot of charities, that is because they are doing a lot. They cover a very wide range of needs - cancer, stroke, dementia, homelessness, hunger, mental health challenges, physical disability, caring for unwanted or injured animals, preserving our environment; the list goes on and on. If fewer charities existed, the needs they address wouldn’t simply disappear. The real question should not be whether there are too many charities, but rather, who would step in to fill the gaps if they were gone?

Narrative: Charities Should Collaborate More to Cut Costs
The idea that charities should collaborate more to reduce overhead costs is fair and understandable, but it can oversimplify the issue. While collaboration is valuable and already happening, there are key factors to consider:

1. Charities Already Share Resources – Many charities in Jersey already collaborate by sharing office space, back-office functions, and expertise. Over 80% share knowledge¹⁰, and nearly a third share physical resources¹³ such as facilities. The idea that charities operate in isolation is simply untrue.
2. Collaboration Isn't Always Cost-Free – Merging or sharing services can create additional costs, such as IT integration, legal fees, and management changes. In some cases, maintaining separate but coordinated organisations is actually more efficient than forcing mergers.
3. Different Charities, Different Needs – Not all charities operate the same way. A small, volunteer-led community charity does not have the same requirements as a larger charity delivering specialist services. Merging them for the sake of cost-cutting can risk losing focus, expertise, and personal engagement with beneficiaries.
4. Overheads Are Not Waste—They Are Essential – Every organisation, whether a charity or a business, needs administrative support, financial oversight, and governance. Expecting charities to eliminate these functions entirely through collaboration risks undermining their ability to operate effectively.
5. Charities Are Already Lean and Efficient – Most charities operate on tight budgets, with small teams of dedicated staff and volunteers. They already collaborate, share resources, and maximize every penny. They operate with tight budgets, often relying heavily on volunteers (at least 5,800 in Jersey¹⁰) and incredibly dedicated employees (approximately 3,400 of them who work for a salary on average ~30% below the local economy average¹⁰), and have limited administrative costs compared to many other sectors. The belief that significant savings could be made through consolidation may not take into account the efficiencies already in place.

At the Association of Jersey Charities we believe that collaboration should strengthen, not weaken, charities. Collaboration within the sector is one of our main objectives and we actively support and encourage it where it makes sense. However, this should enhance services, not weaken them through forced efficiency measures that ignore the complexities of charitable work.

Narrative: Charities Overlap and Should Merge
The assumption that similar charities should merge to improve efficiency can overlook key realities:

1. Overlap Is Not the Same as Duplication – Charities may work in similar areas, but they often serve different groups, provide distinct services, provide different types of support or take unique approaches to solving a problem. Having multiple charities working in the same space can actually improve outcomes by offering choice, innovation, and specialisation. Charities, like businesses, exist in an ecosystem where those that are most effective, innovative, and well-run tend to thrive. The existence of charities addressing similar issues allows for diversity in approaches, competition for efficiency, and better outcomes for beneficiaries.
2. Choice and Specialisation Matter – Just as in the private sector, different organisations tackling the same issue allow for diverse approaches. For example, two mental health charities may offer different services—one focused on crisis support, another on long-term therapy. Merging them could dilute that expertise.
3. Collaboration Already Happens – Many charities in Jersey already work together, referring clients to each other, co-delivering projects, and sharing resources where appropriate. While there is always room to improve coordination, forced mergers can create bureaucratic challenges rather than solving inefficiencies.
4. Mergers Are Not a Quick Fix – Merging charities can be complex, costly, and time-consuming. It involves legal and governance changes, aligning different organisational cultures, and potential disruption to services. In some cases, it leads to less effective delivery rather than more.
5. Bigger is not always better - Many of Jersey’s charities are run entirely by volunteers. If charities merge and grow in size, they may require more formal structures and paid staff, increasing costs rather than reducing them. Sometimes, staying small is what allows a charity to remain community-driven and efficient.
6. Funding, Not Structure, Is the Real Issue – The challenge charities face is not that there are too many of them but that demand for their services is rising while income is falling. The focus should be on ensuring that all charities, regardless of size, have the support they need to continue delivering vital services.

Jersey is lucky to have a diverse and active charitable sector that responds to a wide range of needs. The question should not be whether charities should merge, but how we can better support the delivery of the needed outcomes in the most efficient manner possible.

Narrative: If a Charity Can't Raise Enough Money, It Shouldn't Exist
This argument assumes that fundraising success is the best measure of a charity’s value, which is flawed for several reasons:

1. Need, Not Popularity, Determines Existence – Charities exist because there is an unmet need, not because they have the most marketable cause. Some of the most vital charities operate in areas that don’t attract high-profile donors, such as domestic abuse support, or services for people with complex disabilities.
2. Fundraising Is Harder Than Ever – The cost-of-living crisis means people have less disposable income to donate, businesses have tighter budgets, and government funding is stretched. A charity struggling to raise funds today is not failing—it is facing the same economic pressures as the people it serves.
3. Essential Services Should Not Be Left to Market Forces – If we applied this logic to public services, we’d be saying that if a hospital or school can’t raise enough private money, it should close. Many charities provide services that would otherwise fall to the government. If they shut down, the problem doesn’t go away—it just becomes someone else’s responsibility.

Instead of questioning whether a charity "deserves" to exist, the focus should be on ensuring that vital services are supported. This can come from donations, volunteering, corporate partnerships, or government recognition of the essential role charities play.

The Real Challenge: Rising Demand, Falling Income and Increasing Costs
Rather than focusing on the structure of charities, we must address the real issue—the increasing demand for their services at a time when their costs are rising and funding is under threat. Charities are stepping in where government and other sectors cannot, providing essential support to some of the most vulnerable members of our society. If donations continue to decline, and if calls for consolidation lead to fewer charities operating, who will step in to fund and deliver these critical services?

Jersey’s Charities Need Our Support
Charities are the most trusted institutions in Jersey¹¹. There is a danger that claims about duplication and inefficiency become an excuse not to support them at a time when they need our help the most. We are lucky to have such a diverse, varied, and valuable charitable sector that provides immense benefits to our community.

Supporting charities can take many forms, including:

• Donating money, no matter how small the amount
• Volunteering time and skills
• Attending fundraising events
• Advocating for the sector and raising awareness
• Encouraging businesses to support charities through corporate giving
• Ensuring government funding continues for essential services

The Association of Jersey Charities will continue to support collaboration, but not at the expense of essential services. It’s time to move beyond questioning the existence of charities and focus on how we can ensure they continue their vital work in the most effective and efficient way possible. Jersey’s charities are open to scrutiny and always striving to improve—but they cannot do it alone.

References

¹ 2024 AJC Cost of Living survey

² Jersey Charity Commissioner’s Annual Report 2023

³ Statistics Jersey - Population and migration statistics 2023

⁴ Guernsey Register of Charities and Non Profit Organisations

⁵ States of Guernsey Electronic Census; Latest Population, Employment and Earnings end 2023

⁶ Winter 2024 edition of the Charities Bulletin issued on behalf of Isle of Man H.M. Attorney General as the regulator and registrar of charities

⁷ Statistics Isle of Man – Isle of Man Population Report 2023

⁸ UK Charity Excellence Framework https://www.charityexcellence.co.uk/how-many-charities-in-the-uk/

⁹ Office for National Statistics - Population estimates for the UK, England, Wales, Scotland and Northern Ireland: mid-2023

¹⁰ Jersey Community Foundation/PwC report “The value of Jersey’s third sector” 2024

¹¹ Statistics Jersey -Jersey Opinions and Lifestyle Survey Report 2024