Jackson, 28, suffered the injury when he dived into a swimming pool.
Restart Rugby, the official charity of the Rugby Players' Association (RPA), says it will "assist Ed with the significant cost of the intensive rehabilitation that will be required".
Jackson is receiving treatment at the Royal United Hospital in Bath.
RPA chief executive Damian Hopley told BBC Wales Sport: "The trustees agreed to make a sizeable donation to look after the rehab and physiotherapy cost that Ed will undergo.
"Ed has made some very encouraging progress in the first month post his accident.
"Clearly you can see the huge support he has across the game and we're lucky in the rugby perspective that the game rallies around situations like this.
Jackson had emergency surgery at Southmead Hospital in Bristol after the accident at a friend's barbecue on 8 April.
The former Bath, Wasps, London Welsh and Doncaster Knights player has recovered some movement and is updating his friends and supporters on his progress on his Facebook page.
Hopley added: "It's important we're there to support Ed and his family and give them some peace of mind around what is to come because they are in uncharted territory.
"Recognising the humour and spirit that Ed is renowned for on his social media account, it's fantastic to chart his progress and it's important we help to pick up the pieces as much as we can."
Bath-born Jackson made 36 appearances for the Dragons after joining from Wasps in 2015 and signed a contract extension with the region in December, 2016.
A rugby players' charity has pledged financial assistance to Newport Gwent Dragons forward Ed Jackson, who is recovering from a spinal injury.