Article in Scotland on Sunday describes fear among the charity sector after Lloyds Banking Group announced it was to cut its charitable foundation funding
Charity ends at home as funds feel the pinch
Published Date: 18 October 2009
By Rosemary Gallagher
THE worst is still to come from charities which are already being hit hard by the recession as experts have warned that public sector funding will be cut in coming months.
Last week, hundreds of Scottish charities were fearing for their future after Lloyds Banking Group announced it was to cut its charitable foundation's funding, worth at least £6 million a year, because of the financial crisis.
Chris Horne, director of Pilotlight Scotland, an organisation which matches charities with businesses and individuals who are able to give their time and expertise, said more not-for-profit organisations would have to scale back or go under next year.
He said: "The real pressure is still to come. The next one to two years will see a major squeeze on charities as a significant proportion of their money comes from local authorities and the Scottish Government."
The Lloyds TSB Foundation news had not come as a major shock, he said, as its funding had reduced in recent months. But it was a big blow as it had been one of the major contributors in Scotland.
Horne said the HBOS Foundation stopped giving out money to applicants at the end of the last financial year and the Moffat Charitable Trust was no longer funding new projects.
Anne Boyd, chair of the Scottish Community Foundation, which matches philanthropic individuals and companies with charities, said: "In the first half of this year, we've seen applications to our grant-making programmes increase by a third, mainly due to larger organisations, those with paid staff, applying for funding.
"These groups are likely to face the hardest challenge in the current climate, and I suspect a lot of voluntary sector jobs will end in 2010."
Jandy Stevenson, partner and leader of the charity team with Edinburgh accountants Henderson Loggie, advises charities to avoid burying their heads in the sand and focus on activities core to their organisations. "Some might come out stronger in the end," she said.