More than ever, companies are looking to invest business profits back into the community from which they operate. This is true of the high value residents that move here, as well as companies that locate, operate and thrive here because of Jersey’s business environment.
Globally, companies are now well practiced when it comes to examining their social impact and most have implemented environmental, social, and governance (ESG) strategies to measure their impact within a wider ethical and sustainable framework. The World Business Council for Sustainable Development (WBCSD) conducted a survey in 2019 that found among the 250 world’s leading global companies surveyed, 82% have reported on the Sustainable Development Goals (SDGs) put forward by The United Nations. As well as looking at their sustainability footprint across different business areas, including supply chains, investments, products and services, companies are placing increasing importance on giving back to the communities they serve. As an international finance centre, companies operating out of Jersey are now seeking high-quality guidance in this area and Jersey Community Foundation (JCF) is well placed to drive this forward effectively.
Jersey’s Charitable Landscape and the Community Foundation Model
Jersey’s charity sector is proportionately large in comparison to elsewhere. Analysis from our local needs assessment research in 2022 suggested that there were approximately 4.3 charities per 1,000 people in Jersey, compared with three per 1,000 people in England & Wales and 2.2 per 1,000 people in Australia. This excludes many community organisations and sports groups which may not be captured by the Jersey Financial Services Commission (JFSC) or Jersey Care Commission (JCC). By income, a third of England & Wales charities are very small compared to only a fifth of Jersey.
The Jersey legal and regulatory environment is flexible and sophisticated, catering for the needs of small local charities as well as global philanthropic enterprises and has long standing and deep expertise in the establishment of structures which are suitable for charitable, environmental and social impact purposes.
The community foundation model is designed to provide a sustainable source of income to local charities and community organisations. Companies that want to ensure their charitable giving has a truly sustainable impact on the communities they serve find themselves strongly aligned with both the SDGs and the community foundation place-based model, according to a report by UK Community Foundations.
Community Foundations connect local sources of philanthropy with local charitable partners to deliver funding programmes that target local need. Taking a long-term approach that recognises local expertise is key to achieving social impact. Short-term, project-based funding restricts organisations to a hand-to-mouth existence that prevents them from being able to build the sustainable delivery models that will help us achieve progress towards longer term social goals. Multiyear funding gives organisations the financial stability to improve their organisational capacity to deliver their services. Taking a place-based, community philanthropy approach, as community foundations do, harnesses the best of philanthropy.
Community Foundations are in an ideal position to understand and address a complex range of interdependent issues at a local level and the need for organisations and governments to no longer target social issues in isolation.
Need in Jersey
Our beautiful and often visited Island which has so much to offer, faces many unseen challenges of disadvantage and social need. In 2022, the JCF compiled research to demonstrate the extent of community needs and social deprivation across Jersey. The published findings feature in JCF’s Local Needs Assessment Report available on the JCF website and provide tangible, relevant and recent data that form the basis of a strong, evidence-based approach for our grant-giving activity.
In particular, mental health, the ageing population, loneliness, health issues, child poverty, housing and wealth differences were all factors creating real challenge for people in Jersey.
Our vision is to ensure Islanders are healthy, included and engaged, as well as supported by a strong, efficient, impactful and thriving community infrastructure.
Inspiring businesses and individuals alike to entrust their funds to JCF to finance impactful and potentially life-changing projects and respond to emerging need, will help us achieve this vision. Through our research and understanding of local issues, our purpose is to enable fundholders to undertake informed and targeted grant-making to the causes they care about and we have revised our grant-making priorities in response to the needs identified, which are:
- Community inclusion and tackling inequality
- Caring for an ageing population
- Addressing the impact of the cost-of-living crisis and poverty
- Promoting mental health and wellbeing
- Encouraging healthy living, including combating obesity
Charitable organisations play a pivotal role in addressing these priority areas – as well as many other important areas – offering invaluable support, services and resources to those in need.
Donor Advised Funds (DAFs)
Within the myriad of funding opportunities available to individuals and companies alike, Donor Advised Funds (DAFs) have emerged as a game-changer, democratising charitable giving and making it more accessible to a wider range of individuals. These funds have revolutionised the way people and companies contribute to causes they care about by providing a streamlined and efficient platform for giving back to the community.
The Jersey Community Foundation, as a leading advocate for philanthropy in Jersey, has witnessed a notable surge in the use of DAFs among individuals seeking to make a difference in their communities. With a DAF, donors can contribute assets, receive immediate tax deductions and recommend grants to qualified nonprofit organisations at their own pace. This innovative approach to giving enables donors to maximise their impact on charitable causes while benefitting from the expertise and resources of Jersey Community Foundation.
One of the key advantages of DAFs is the ease and flexibility they offer donors. By consolidating donations into a single fund, individuals can support multiple charities without the administrative burdens associated with managing a private foundation. This simplicity allows donors to focus on their philanthropic goals without the hassle of paperwork and compliance requirements.
DAFs are also a cost-effective alternative to setting up a private foundation. With lower fees and administrative costs, donors can maximise their charitable impact without breaking the bank. This financial efficiency makes DAFs an attractive option for individuals who want to make a difference in their communities without the financial commitment of establishing their own foundation.
DAFs provide significant tax benefits to donors, similar to those available for donations to private foundations. By contributing to a DAF, individuals can enjoy immediate tax deductions while supporting causes they are passionate about. This financial incentive encourages donors to give back to their communities and make a lasting impact through charitable giving.
Privacy and anonymity are also key features of DAFs, allowing donors to support causes without drawing attention to themselves. This confidentiality can be appealing to individuals who prefer to keep their philanthropic activities private while still making a difference in their communities.
Professional investment management is another significant advantage of DAFs, as they are typically managed by financial institutions or community foundations with expertise in managing charitable assets. This professional management ensures that donors’ contributions are invested wisely and have the potential to grow over time, maximising their impact on charitable causes.
Legacy planning is yet another benefit of DAFs, as donors can involve their family members in philanthropy and create a lasting charitable legacy. By naming successors to continue recommending grants from the fund after their lifetime, donors can ensure that their philanthropic goals are carried forward for future generations.
Setting up a Fund with Jersey Community Foundation
We work with individual donors, companies or private client advisers to set up Donor Advised Funds. We will work with the fund holder(s) to tailor grant criteria and priorities for the fund that meet with the donor’s philanthropic goals. Fund-holders can be involved as little or as much as they wish in the grant-making process.
By working with donors in this way, we offer a straightforward and flexible alternative to creating conventional charitable trusts. We can either set up a Flow-Through Fund, meaning we can distribute donations to the fund as grants straight away for immediate impact, or set up an endowment with the resulting investment returns being made available for grant-giving in perpetuity – or a hybrid of the two.
Aside from setting up a Donor Advised Fund, there are many other ways companies, donors or private client advisers can get involved and many reasons for giving. By working together, we can find a solution to help your client reach their philanthropic goals and support the causes they care about.
These include but are not limited to:
- Contributing to an existing Themed Fund (such as our Jersey Community Fund that specifically tackles our aforementioned funding priorities)
- In Memory or Tribute Funds
- Charitable Trust Transfers
- Leaving a Legacy
- Corporate Fundholders
- Charitable Trusts
- Residual Client Balances
Jersey charities are registered as charities under the Charity (Jersey) Law 2014 on the basis the charity carries out substantial charity activities in − or from within − Jersey.
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