Warning as charity groups struggle in face of cuts (From The Northern Echo)

Warning as charity groups struggle in face of cuts

8:00am Thursday 1st September 2011 in News By Will Roberts

A CHARITY group has warned that communities are suffering as volunteer organisations in the region struggle with increased demand and tighter budgets.

A new survey by Voluntary Organisations' Network North East (Vonne) shows that of 120 charities and community groups in the region, 73 per cent said they had seen a decrease in funding in the past six months while 40 per cent said they had lost staff.

The survey is carried out every six months by Vonne to monitor the impact of the economic downturn on the North-East's third sector.

The figures show that over the past six months, 59 per cent of respondents said that they have experienced an increase in demand for their service, while more than two thirds are using reserves to meet everyday costs.

The Vonne report also paints a bleak picture for the future of voluntary organisations, with 48 per cent of respondents expecting to close a service and 28 per cent considering reducing the number of beneficiaries they support.

Meanwhile 23 per cent say they may close altogether in the next year.

The 120 organisations which responded to the survey represent groups of all size and support more than 600,000 people across the North-East, creating 4,000 jobs and 50,000 volunteering opportunities.

Jo Curry, chief executive of Vonne, said: "It is no surprise that nearly three quarters of charities report an increased demand for their services, as vulnerable people feel that they have nowhere else to turn.

"What a scandal it is then, that nearly half of those charities will be closing a service and nearly a quarter face closing down all together as their resources dry up.

"In the grand scheme of things I couldn't care less whether the Government reboots or retreats from Big Society.

"I do care that communities are losing hope, and that marginalised individuals will suffer as services are withdrawn and charities close. We must stop this from happening."

Susan Bickerton, from Norcare, which provides support for vulnerable people in the region, said: "Between this year and last year we have seen a cut of about £300,000 but in most cases we're expected to help the same amount of vulnerable people.

"The biggest challenge is doing that without a reduction in the quality of service we provide."