What is the value of Jersey’s ‘third sector’?

In Jersey, the third sector is more than just a network of charities, non-profits and voluntary groups. It forms the backbone of community resilience, providing essential services that government resources alone cannot fully deliver.

To capture this impact, Jersey Community Foundation (JCF) recently commissioned a ground-breaking report – ‘The value of the third sector’ - conducted by PwC Channel Islands. The report takes a rare look at the contributions, challenges and future potential of Jersey’s third sector – a sector of passionate people working for common good and making significant contributions to our island economy and wellbeing.

Two weeks after its public release, we spoke with James Linder, Lead Economist at PwC Channel Islands, to help us understand the findings, unpack its key messages, review the headline figures and crucially, drive forward the outlined recommendations to help keep our third sector thriving.

Value of the Third Sector Report

Purpose and relevance of the report

“The report is timely and crucial for Jersey,” James tells us. As a small island economy, Jersey’s government is unable to deliver the same level of public services seen in larger countries, like  the UK, for example. This gap in public welfare is often filled by third sector organisations. “The third sector in Jersey isn’t just a support system; it’s essential to the fabric of island life”, James explains.

The report quantifies that role, aiming to increase public understanding of how charities, nonprofits and social enterprises fulfil essential needs that would otherwise fall to government agencies. In a rapidly changing economic landscape, the report provides a framework for growth, resilience and collaboration across sectors.

JCF is a grant-giving organisation dedicated to effective philanthropy rooted in local needs. In December 2022, JCF collaborated with PwC Channel Islands to publish a Local Needs Assessment report, identifying key areas of need in Jersey for strategic grant-making. This Value of the Third Sector report follows a similarly data-driven approach, aiming to quantify and enhance the sector's impact.

Significant findings: The economic and social contributions of the third sector

One of the report’s most striking revelations is the economic weight of Jersey’s third sector. Contributing approximately £230 million annually, it generates more than traditional sectors like agriculture and fishing combined. This substantial figure includes the value of direct services, but the real impact extends beyond the balance sheet to many social benefits too.

Jersey’s third sector encompasses over 775 organisations, employing approximately  3,400 people and involving at least 5,800 regular volunteers. These volunteers contribute work equivalent to 1,700 full-time jobs. “These organisations provide everything from health services and arts initiatives to environmental conservation, shaping both the economy and the wellbeing of our communities”, James adds.

The scale of this impact also reveals a distinctive structure. Unlike in the UK, where government funding forms a significant portion of third-sector income, Jersey’s nonprofits rely heavily on trading activities – such as charity shops, membership fees and service contracts – which account for 53% of their income. Donations make up 19% and grants cover 17%. “What’s unique about Jersey’s model is this level of self-sufficiency”, James explains. This independence brings stability but also creates challenges, especially as smaller organisations struggle to maintain funding and reserves.

Facing challenges: Funding, workforce and public engagement

Despite this resilience, Jersey’s third sector faces significant financial challenges. Over a third of organisations have less than three months’ worth of reserves, making them vulnerable to sudden economic shifts. “Financial instability is a common concern”, says James, noting that nonprofits reliant on event-based fundraising are especially susceptible to economic downturns. Additionally, recruiting and retaining volunteers is increasingly challenging, with evidence suggesting that changes in economic conditions has meant that fewer islanders are in a position to volunteer their time.    

The report also identifies a cultural gap in Jersey’s public giving habits. Islanders tend to prefer visible contributions, like attending ticketed events or making one-off donations, over sustained monthly giving. James observes, “There’s a hesitancy here towards subscription-style donations.” He suggests that expanding digital giving platforms and raising public awareness could help foster a more consistent culture of support.

Comparing the third sector’s contributions with other economic sectors

Jersey’s third sector holds a unique position in the island’s economy, with contributions outpacing those of some traditional industries. While agriculture, forestry and fishing contribute approximately £39.7 million annually, the third sector brings in £230 million. “If we view it as a distinct sector, it’s one of Jersey’s larger economic contributors”, James points out.

This comparison underscores the sector’s foundational role in supporting essential services, from healthcare to affordable housing, often in ways that aren’t immediately visible but are critical and deeply impactful.

Strengthening the sector: Key recommendations for quick wins

The report provides recommendations to bolster the third sector’s sustainability across four fronts: the private sector, the public, the government and the third sector itself.

When asked about the ‘quickest wins’ for each sector, James emphasises the importance of data collection among charitable organisations. This is about deliberate data collection to demonstrate results and impact. “Rather than capturing everything, at the beginning of each initiative, organisations should consider what data they need to collect and how they will collect it. The ability of third sector organisations to showcase their impact through data is crucial to increased funding.”

For the public sector, the report advocates for more collaboration and long-term funding arrangements. Many third-sector organisations are currently “cross-subsidising” government services – using private donations or other income to cover shortfalls in government contracts.

James also urges the government to treat the third sector as it treats itself. Practically, and for example, this means opening up government training days and conferences to third-sector delegates so they can upskill their teams and ultimately better serve the public.

James sees an opportunity for the private sector to increase support too. With sponsorships (excluding donations/grants) making up less than 1% of third-sector income, businesses could further strengthen their corporate responsibility programmes, skills-based volunteering and financial support to bridge the gap.

As well as this, he suggests organisations look at pooling funds strategically to have a bigger, overall impact and using Donor Advised Funds (DAFs) or Themed Funds to effectively carry out their philanthropic activity.

Across the private and public sectors, James advocates for a more deliberate use of third sector services. For corporations, this means thinking about their total impact and taking ownership and responsibility for making socially conscious decisions at the top level. This applies to procurement contracts, volunteering and even small choices, like where to buy lunch.

Finally, for Islanders, James calls for greater engagement across the board.

This means helping raise funds and donating, but also making conscious buying decisions, visiting and engaging with the island’s heritage and culture, enjoying cliff paths and supporting the breadth of services provided. James also encourages the public to seek accountability from the sector. Just as we hold our politicians and government accountable, the third sector should also be held accountable for its actions, be it constructively.

Why the health of the third sector matters for Islanders

Jersey’s third sector impacts everyday life in subtle yet powerful ways, from healthcare services provided by Family Nursing & Home Care to environmental preservation efforts by the National Trust for Jersey. “These organisations don’t just deliver services; they provide security, comfort and a sense of community that enhances life on the island”, James says. For an average Islander, the health of the third sector is synonymous with a thriving community, better public spaces and accessible healthcare – all of which contribute to the quality of life.

Ensuring a sustainable future

For the third sector to thrive, it needs more than financial support; it requires a community effort involving individuals, businesses and government.

The report calls on individuals to consider consistent giving, even in small amounts, and to volunteer when possible.

For businesses, the report highlights the impact of sponsorships and collaborations, which remain underutilised in Jersey’s third sector.

Finally, James encourages government bodies to incorporate third sector input into policy planning and to consider more reliable funding models. “Supporting the third sector isn’t just about money; it’s about recognising the essential value these organisations bring to our lives”, he concludes.

In a rapidly changing world, Jersey’s third sector is an anchor of stability, service and community. This report affirms that by investing in the third sector, Islanders are investing in a stronger and more resilient future for Jersey.

About the report

Combining available data sources with a sector-wide survey, the 70-page core document offers valuable insights into the size, scope, economic impact, financial dependencies and strategic ambitions of the sector, alongside the challenges and opportunities arising.

The report concludes with recommendations for the third sector and its wider partners in government, the community and the private sector to ensure the sector is fit for the future and able to further strengthen its contribution.

Acknowledgments

The Value of the Third Sector report was commissioned by Jersey Community Foundation in partnership with Jersey Overseas Aid, the Jersey Community Partnership and PwC Channel Islands. The Jersey Community Foundation expresses its gratitude to PwC for investing their time and expertise in this project, with special thanks to James Linder, Ali Cambray, Lisa McClure, Neil Howlett and Angela Wangari.