Will new high-value residents fund channel more wealth into local causes?

Thursday 12 September 2024

A new fund is being set up to help those who have settled in the island under the high-value residency scheme donate to and build relationships with charitable organisations, Express has learned.

Jersey Community Foundation CEO Anna Terry said that the fund had already received donations of £50,000, with a further £50,000 pledged, despite not having officially launched yet.

It comes amid recent concerns about the financial health of Jersey charities led some to question whether those settling on the island via the HVR scheme, which attracts new businesses and high-net-worth individuals to the island, should be doing more to support local causes.

A sector in crisis

The Association of Jersey Charities highlighted the third-sector's need for support, with some organisations like Beresford Street Kitchen reducing operations amid financial difficulties while others, like the Jersey Recovery College and AllMatters Neurodiverse, have been forced to close permanently.

JRC, which provided a number of mental-health related services, highlighted that the third sector “has been hit especially hard by increased demands on service, growing costs and reduction in income and donations”.

Housing Minister Sam Mézec, who sits on the panel that considers HVR applications, was among those to question whether wealthy people who settle on the island should be doing more. 

Deputy Mézec told Express that, "as one of the wealthiest places in the world", a decline in charitable giving was "not acceptable".

Pictured: Deputy Mézec said a decline in charitable giving in an island as wealthy as Jersey was "not acceptable".

"The point of having wealth here is that it is meant to permeate through our society, so we all benefit. But we are increasingly seeing signs that this is not happening," he said.

Deputy Mézec added that he had "long been sceptical of the benefits of the HVR scheme to Jersey".

"I have repeatedly asked to see the evidence of the positive impact it has and have only ever been given anecdotes in response," he continued.

"We are told that they are apparently very generous in their charitable givings.

"But the figures now show that even though we have never had so many HVRs here and their wealth has been increasing at extraordinary rates, charity donations have fallen significantly."

How many HVRs actually live here?

According to government figures, just over 300 high-value residency applications have been approved in Jersey, with the first approvals dating back to the mid 1970s.

Locate Jersey is currently working with PWC and the JCF on an annual 'Value of the Third Sector' survey, asking HVRs about their charitable donations.

Officials also said that several high-profile charities "either have HVRs or their spouses on their boards or as ambassadors" and that "two large foundations in the island" are funded from companies set up by HVRs prior to 2020.

Major donations in recent years have included £1.2m given to the Bailiff’s Fund by HVRs in 2020, while last year saw one wealthy resident divide £1m between four local charitable organisations.

Pictured: HVRs gave more than £1m to the Bailiff's Fund in 2020.

The government noted that HVRs have made "significant contributions to local and international charitable causes", adding that Locate Jersey "has been working closer with the JCF to support HVRs to set up funds that can sustainably and anonymously contribute to the island".

Ms Terry said: "We are definitely seeing an increasing number of new and existing high-value residents setting up Donor-Advised Funds with us and also contributing to our main themed fund, the Jersey Community Fund."

She explained that the JCF fund pools donations from a number of donors, as well as funds from dormant bank accounts, supporting "current needs in the island".

She said that many HVR's were "very generous", but that there was currently no overarching dataset encompassing their yearly charitable contributions.

Pictured: Anna Terry is the CEO of the Jersey Community Foundation.

However, Ms Terry noted that this was going to be surveyed as part of the Value of the Third Sector report and added that the JCF was also in the process of setting up a fund aimed at HVRs.

She revealed that, while this hasn’t yet been officially launched, it has already received donations of £50,000 with a further £50,000 pledged.

“It can be overwhelming for donors, especially those that are new to the Island, to navigate the charitable landscape, JCF can offer guidance and support to donors to assist them with their philanthropic giving,” she said.