Funding Crisis For 75% Of Charities In Glasgow

Three-quarters of charities in Scotland’s biggest city face immediate funding problems, according to new research. A study by the Glasgow Council for the Voluntary Sector (GCVS) has found that of 120 voluntary bodies questioned three-quarters had not managed to secure adequate funding for 2008, and 96% have concerns for their future.

The GCVS, which acts as an umbrella body for the 900 voluntary organisations in Glasgow, said 44 charities have already closed in the past two years, predominantly as the result of funding problems, and numerous other organisations face having to reduce services to cope with funding deficits.

The survey also raises concerns about red tape surrounding complex funding applications, and the cuts in the total pot of money available. The news comes just weeks after The Herald revealed charities across Scotland are funding local authorities by up to £130m a year.

The report commissioned by the Scottish Executive found almost 30% of Scotland’s 50,000 voluntary organisations have contracts to provide services to the public sector, ranging from £50,000 to £1m a year.

Research found only 14% recovered full costs on contracts and warned this would undermine the future sustainability of the voluntary sector.

Helen MacNeil, GCVS chief executive, said: “This is a sector in crisis. Short-term funding, red tape and inadequate resources are dangerously undermining the future sustainability of the sector. Organisations are feeling used, under-resourced and under- valued.

“Funders, including statutory bodies, need to understand the added social value that is provided by voluntary and community sector, and support it accordingly. Ultimately, this is about how we get a better deal for Glasgow and a fair deal for its community and voluntary organisations.”

There are more than 900 voluntary and community organisations in Glasgow which provide services for almost one million people, most of whom make up the most vulnerable sections of society.

The annual income of the voluntary sector is about £430m – approximately half of which is self-generated.

She added: “This instability has huge implications for our society and our city. We need a strong and vibrant voluntary sector to combat the levels of poverty and exclusion in Glasgow, and instead we have a situation where charities regularly subsidise public services, and where funding cuts are putting vulnerable people at risk.”

A spokesman for Glasgow City Council said many of the funding issues would be resolved following the decision on Friday to amalgamate two different budgets.

“We are merging our social inclusion budget with our community regeneration budget, creating a single regeneration budget valued at £52m. We anticipate the vast majority of projects funded from these budgets will continue to be renumerated in the normal way.”

John Duncan of Possil Renewal, an organisation which provides leisure and sports facilities in the area, warned that charities need to be provided with far more sustainable funding.

“We have effectively been doing the local authorities’ job for the past seven years but they seem unwilling to provide us with any recognition of that.”