THE huge pressures faced by Jersey charities have been laid bare in a new report which reveals that more than a third have been forced to scale back activities and over half are surviving only by using their reserves.
A perfect storm of the Covid pandemic and cost-of-living crisis has left some charitable organisations on the brink – as demands on them have increased while donations drop.
An Association of Jersey Charities survey, which received almost 60 responses, found:
l55% of their members had seen an increase in demand for their services, with organisations also warning of “unsustainable operating costs”.
lAround a third (32%) said they had had to increase services to meet demand this year, but almost the same proportion (33%) have had to scale back activities.
lMore charities (42%) are expecting to scale back their activities in the next year, because they either anticipate the cost of delivering services to continue to increase (89%), or the funds they can raise to drop (79%).
lTwo-thirds (66%) of charities have already had to use their reserves to meet increased costs or expect to do so in the next year.
lThe majority (61%) of charities believe that the government’s response to the cost-of-living increase and its impact on the charitable sector has been either poor or very poor.
Beth Gallichan, chief executive of the AJC, said: “We understand that people are unable to donate because they don’t have the capacity to do that. They are worried that it’s a risk and don’t want to commit to supporting charities in the long term with large donations, as used to be the case.”
Most donations, Ms Gallichan said, now came from high-profile fundraising events such as lotteries or auctions which did not qualify for the Jersey Gift Support scheme, whereby the government provides charities with an additional 25p for every £1 donated.
She added: “Those risky, value exchange appeals are also much more expensive to put on than in the past. If funds raised don’t increase while costs increase, then that is a challenge.
“As all those costs escalate along with the cost of living, we don’t get the return on the investment in that event or appeal. Donations are more needed than ever now, because the cost of caring for people and to operate have also increased.”
Macmillan Jersey’s book café recently announced its closure due to rocketing costs and challenges created by the Covid pandemic.
Ms Gallichan said: “It’s important that people in our community ask those charities what they need, especially the people who are in position to give more or influence through their businesses, and recognise that there are huge benefits to supporting our community.
“It’s not a time for us to stop giving to charities: it’s a time for us to support them further. Put your faith in charities to use funds where they need it most, whether that’s basic operating costs or big projects.”
The treasurer of the Jersey Christmas Appeal and the auction’s co-ordinator, Annette Blanchet, said her team had found it “much harder this year, like many other charities”.
She continued: “As a charity we rely entirely on the goodwill and support of local individuals and businesses, especially when it comes to the auction. At the same time as finding it hard, we appreciate there are a huge number of demands which are being placed on these businesses, many of whom are facing their own difficult trading conditions.
“And, while the auction may have raised less than last year, you should never assume that each year you’ll always make more than the year before.
“We raised over £50,000, which was a fantastic result, and we are so grateful to everyone that helped us with that achievement.”
Dominic Egré, a volunteer at the St Vincent de Paul food bank, said that some of those who used to be donors of the food banks were now its clients.
“It is getting to a point where it’s not sustainable,” he continued. “We are buying in more than all the donations we have, and we now buy in the majority of what we stock.
“It’s been steadily getting worse since Covid. We used to have roughly one in 26 bags as donations, and now its one in 50.”
“Food is just so expensive to donate now, and those general donations are down massively. We are very concerned for the future. This is not sustainable in the long-term.”
He added: “We are all fishing from a tiny pond, and those who donate can often only do so to one charity.”
