Money running out for charities in Ryedale (From Gazette & Herald)

Money running out for charities in Ryedale

RYEDALE charities are facing a cash crisis and the leader of one of them is calling for all of them to join together in raising funds for their survival.

Paul Hayward, the chief officer of Ryedale Voluntary Action warned that smaller organisations are losing out to large agencies - and thinks that smaller groups should band together as they battle for cash.

He said: "The current financial climate is having a grave effect on charitable funding and the future of many charities, including those in Ryedale."

Writing in the RVA's latest newsletter, Mr Hayward says there are several reasons for the crisis, including the poor performance of stocks and shares, which has meant that grant-giving trusts have less money to distribute. One, the Wellcome Foundation, which aids health charities, has seen its income slump by 40pc.

In addition, says Mr Hayward, a fall in the sale of lottery tickets and the Government's change in the tax regime to encourage more corporate giving has had the opposite effect of what was intended.

"Companies have cut their level of donations as a result of the down-turn in the economy," said Mr Hayward.

"In the last six years, there has been a wave of new start-up agencies, principally funded by the lottery and regeneration funds, that have reached the end of their initial funding from these sources. These organisations are now in the overall market for funding from the traditional sources. This has increased pressure on those funds."

Competition between the charities has become more intense, says Mr Hayward, as they vie with each other for what is available.

"Inevitably, it is often the small charities that lose out," he said.

"The irony is that all this is happening at a time when the Government is emphasising the value of the voluntary sector and the work it does.

"It is urging local authorities and other agencies to work more closely with the charitable sector. The voluntary sector does deliver - it brings in £7 for every £1 of local authority funding."

He said voluntary organisations in Ryedale were "dynamic" and "extremely committed to those we serve and innovative". But they need on-going support from such authorities as Ryedale District Council and North Yorkshire County Council, which already provide assistance.

He added: "Increasingly, other agencies come into play. We are extremely fortunate in Ryedale in that the Scarborough, Whitby and Ryedale Primary Care Trust is also very supportive of the voluntary sector."

Mr Hayward said that, without the continuing support of such agencies, many organisations in Ryedale will have to reduce their activities, as is already happening, or will cease to exist.

"I do not consider this to be an exaggeration. The funding situation is very precarious. It is vital that support from the statutory sector continues and indeed is increased if voluntary groups in Ryedale are to continue to provide services to the most vulnerable in our society."

A co-ordinated approach, rather than one by individual organisations, would be the most effective Mr Hayward believes. He is urging leaders of charitable groups in Ryedale to contact him at the RVA on (01653) 600120.

Updated: 08:50 Wednesday, March 12, 2003