Guernsey charities say more States financial support is needed for their survival as GST looms
A lack of increased funding over the past decade has seen Guernsey charities cut services and go out of business due to rising running costs, the Association of Guernsey Charities claim.
The States of Guernsey have around £5 million for 30 separate funding arrangements with island charities, but there has been little increase to this funding since it was first ringfenced in 2014.
Charities are concerned that introducing a goods and services tax (GST) on top of rising costs could shutter their charitable endeavours.
The Mill Street Community Cafe has provided an essential service for years, but say the increasing cost of living and the possibility of GST are threatening its survival.
David Savident, the cafe's Accounts Manager, explains: "We'd have to decide whether we need to increase our prices and that has a knock-on effect on the customers that come here.
"We do offer free meals to people who have been supported by Grant Aid, but the value of their money will be reduced as well."
Plans submitted by the States of Guernsey in 2023 suggest that charities would not be exempt from GST, meaning their donated goods and anything they purchase would see a 5% price rise.
For charities like Les Bourgs Hospice, the only hospice on the island, GST could lose them two full-time nurses.
Currently, charities in Jersey, the Isle of Man, and the UK are exempt from GST, but Wayne Bulpitt, the Chair of the Association of Guernsey Charities, says there is still no consistency as to how much charities get from the States.
He explains: "We had a social compact with the States at Guernsey in 2014, and it really has not been delivered on.
"Things are now beginning to get better, but what the Association is looking for is a restatement of that partnership, whereby government respects that charities have frontline experience and can deliver services more effectively that they may be able to."
He adds that the Association does not believe funding charities more would impact revenue for other government services.
Mr Bulpitt suggests: "We believe around £100 million of unclaimed dividends, dormant bank accounts, seized assets, and similar, but our island has been very slow in releasing those funds for charitable purposes.
"The UK, Jersey, the Isle of Man, all have schemes to release them. We believe that just the interest of that would be a significant boost to our sector employees."
Gordon Steele is the Chair of the Pollinator Project, which aims to protect Guernsey's natural environment and presents special assemblies in the Bailiwick's schools on the role of pollinators.
The charity receives funding from corporate sponsors and occasional grants through the Nature Commission but has no direct financial support from the States.
Gordon explains: "Funding is hard work; it always has been and always will be.
"In the third sector, you've got great skilled people, lots of potential, and efficient organisations, but how do you release that for the benefit of Guernsey?
"Just like politicians, people working in charities are passionate about what they do, and they want to make the island a better place for everyone.
"If we can release [financial] resources, then maybe we can deliver a more efficient island and deliver growth."
Mr Steele spoke to election candidates last week and urged them to work with charities and deliver stable financial backing, rather than through inconsistent grants.
He concludes: "Treat us as equal partners; don't just dump stuff or expect the third sector to deliver for free. Treat us with professionalism."
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