Jersey charities say they are walking on eggshells, struggling with inconsistent funding, bureaucratic nightmares, and a power dynamic that leaves them feeling undervalued and unheard when it comes to dealing with Government.
A new report by the Association of Jersey Charities has laid bare mounting frustrations, with some organisations teetering on the edge of financial collapse while waiting for Government support.
Now, the sector is calling for urgent reform – before vital services are lost for good.
‘The Power of Partnership’ report found that, while there is evidence of some strong Government and charity partnerships in Jersey, “poor systems” often stifle effective partnership.
Charities spoke of several barriers when working with Government – including short-notice requests for financial information, a lack of accountability and decision-making from officers, and a lack of transparency around Government processes and plans.
Short-term funding cycles
The report found that “short-term funding is blocking charities’ ability to function effectively and deliver for islanders”.
It said: “One of the biggest causes of frustration and stress among charities is around the processes of short-term funding cycles, with some charities reliant on annual grants of over £1million, not receiving confirmation until December the year before the funding is due.
“This exposes charities to significant financial risk in a sector where cash flow is so critical, and can deter those who would otherwise fund or work for the charity.”
I haven’t been able to make a strategic plan this year because if I don’t know if I’ve got funding. In six months’ time, I might be closing services, not building on a nice strategy. That’s a big issue.
local charity
The AJC recommended that multi-year funding arrangements should be standard, and an index-linked annual uplift should be included for charities to be sustainable.
The report said: “A number of charities spoke of agreed funding arrangements being withdrawn last minute, or funds taking months to be received.
“They spoke of operating skeleton staffing structures while waiting for funding confirmation, of pending redundancies or even insolvency risk.
“No organisation can work effectively in this way. It puts charities under significant pressure and exposes them to financial risk.
“Charities are key delivery partners for Government and should be treated with more respect than the current funding practices demonstrate.”
The procurement process
The reviewers also asked charities to score their experience of Ariba – the Government’s system for the raising and payment of invoices.
The weighted average result was 2.25, with 1 being poor and 5 being excellent.
Charities spoke of how difficult the system was to navigate, with one describing Ariba as “a nightmare”.
Another described “significant issues” with invoices being paid, and said the organisation was awaiting almost £20,000 in outstanding invoices at one point.
We have had significant issues with invoices being paid… This has led to some payments not being received by us, which totalled in excess of £20,000 at one stage.
local charity
Small charities do not have the resources to spend the time required to work with Ariba, according to the report.
A number of charities spoke about the possibility of having slightly different procurement processes for charities, such as simpler tender and supplier onboarding processes to minimise the time taken away from charitable activities.
“Charities are not businesses, they bring different value to Government contracts,” the AJC said.
“We believe there should be consideration of how charities operate in any procurement processes and arrangements.
“We recommended that Government of Jersey works with the sector to understand its unique challenges to becoming a supplier and which solutions will help.”
Cross-departmental funding
The report also found that “no mechanism to secure cross-departmental funding” from Government.
“Several of the charities we spoke to said that they struggled to secure Government funding as they did not neatly fit into one department,” it said.
“Our interviews clearly demonstrated that there is a silo working culture in Government when a cross-departmental funding approach is needed.”
The AJC described one local charity which was in receipt of benefits from long-term
care, but not enough to fund their entire service.
The charity therefore had to go to Government regularly for top-up grants – despite no formal agreement surrounding them.
“This not only caused a significant amount of stress to all involved, but also meant the charity was regularly under financial strain,” the report said.
“It is unacceptable that a charity that delivers public services on behalf of Government
finds itself in that position.”
We’ve always felt like the poor country cousin to the government, and sometimes I think that there is a lack of respect from certain people, in power in the government
local charity
The report also described another local charity which did not qualify as a care provider but offered “life-changing programmes” to individuals eligible for long-term care.
It explained: “This organisation ultimately saves the Government money on care costs but cannot benefit from the long-term care provision.
“This same organisation had to approach Government for emergency funding last year.”
The AJC recommended that the Government consider a centralised grant portal, with a “clear and transparent centralised process that can support cross-departmental funding arrangements”.
Grant or commissioning?
The AJC also called for attention to be given to the “inconsistent approach” to commissioning and grants across Government.
“There is confusion among funded charities around what is commissioned and what is a grant,” the report said.
According to the Comptroller and Auditor General, several local grant awards “could arguably fall within a definition of commissioning services”.
This was echoed within the report.
The AJC said: “The findings of our research demonstrate how variable the Government-funded partnership experience can be for charities. For example, the terminology around grant awards is inconsistent.”
Government knows that it is our only customer, so you know it puts them in a kind of position of power in the relationship really
local charity
The report highlighted that, in 2023, the Health Department turned all of its grants into contracts – reflecting a national shift from grant-based funding to procurement.
“While we agree with a move to properly define and administer funded services across
Government, we believe that its important that grants are still part of the funding ecosystem,” the AJC said.
The report raised concerns that the move away from Government grants in the UK had led to a “two-tier charity system” with larger charities benefitting more from commissioned contracts and smaller charities often losing out.
However, the report said that the the forthcoming cross Government Commissioning
and Partnership Strategy, expected to be published this year, will be “key to standardising and streamlining the commissioning process”.
An “evident” power dynamic
The report also reviewed the experience of 52 charities which work in partnership with Government.
“Charities value relationships with Ministers but report challenges, including poor communication from officers and a lack of clarity in Government systems,” it said.
The AJC also found that that “the power dynamic between Government and charities was evident”.
One charity described a “visceral fear” of speaking out, adding: “They say we are equal partners but they hold all the trump cards. They are not interested in debate or dialogue.”
Government think charities are there to do government work and as such treat charities not as an equal partner, but more like employees
local charity
The report said: “Charities spoke of a fear of saying anything negative and walking on eggshells.
“Charities spoke of not being treated as equals, of professional opinions and charitable time not being respected, or of being treated as an extension of a Government department. This must be addressed.
“Government needs charities because of their expertise, agility and connections, as well as their efficiency and efficacy.
“Good partnerships are built on mutual trust, respect, equality and transparency.
“We recommend charities and Government actively address partnership inequalities.”
Government have the cost of everything, but they have the value of nothing
local charity
Charities also felt that there was “far too much emphasis on cutting costs in current Government funding arrangements and not enough emphasis on value and impact”, according to the report.
Third sector representatives also described a “tension” between commercial and charitable activities.
The AJC called for the Government to embrace a broader definition of value for money that includes social value, work with charities to standardise social value measurement, and provide more opportunities for charities to engage in Government procurement.
The report also said that Government could “leverage its procurement power to support charities financially”.
So, what’s next?
The AJC said that it wants the Power of Partnership report to “influence policy and systems change”.
“We hope it helps inform the Public Account Committee’s Scrutiny Review into procurement and the Government’s drafting of a cross Government Commissioning and Partnership Strategy,” it said.
“There are a number of recommendations in the report that, if implemented, will improve Government-charity relations and ultimately lead to better results for our community.”
The report hopes to build on the momentum of The Value of Jersey’s Third Sector report, and that of the charity Health and Care CEO Forum.
The AJC concluded: “There is an opportunity in Jersey to make significant impact by Government and charities working better together.
“We hope this report provides the scaffolding and focus to accomplish this.”
It added: “We welcome a response from Government to our recommendations and hope we can work in partnership to address some of the key issues detailed in this report.”
You can read the full report HERE.