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Nov
Council delivers major funding blow to Harrogate district charities
North Yorkshire Council is to massively reduce funding to the main charity organisation in the Harrogate district.
Harrogate and District Community Action, whose work supports more than 200 voluntary organisations, currently receives an annual core council grant of £40,000.
This sum was agreed by Harrogate Borough Council before it was abolished last year.
But that settlement ends in April next year and North Yorkshire Council, its successor authority, said in a decision notice on Wednesday (October 30) it would “phase out” the former borough council arrangement.
It will therefore award HADCA £30,000 in 2025/26, £20,000 in 2026/27 and £10,000 2027/2028.
The council is also abolishing a £33,500 annual housing service grant to HADCA.
Its decision notice said:
The impact of the withdrawal of the funding is highly significant and could destabilise the organisation as they would be losing £73,000 total income in the same financial year.
The phasing out of the larger grant provides the organisation with some financial sustainability during which time they can plan for the reduction and source alternative funding streams.
The council also said it needed to review “a small number of community transport related grants”.
HADCA warned people at its annual general meeting this month that it was braced for difficult financial times.
Responding to the loss of funding today, chief executive Frances Elliot said:
This was an anticipated reduction in funding for HADCA, which we are working hard to mitigate through much appreciated community fundraising, grant applications to trusts and foundations and support from local businesses.
We know that many local charities are finding fundraising to be increasingly challenging, but they do a great job at supporting local people who are also finding their budgets have to stretch further at the moment. Our new fundraising network for those trying to generate income for local charities aims to tackle this issue by working together to pool knowledge and share opportunities so that all groups have the best chance of success.
HADCA's income declined from £506,421 in 2023 to £463,186 this year, the recent AGM heard.
But expenditure went down from £470,222 to £420,307 over the same period, meaning it was able to record a surplus of £42,879.
Victoria Oldham, chair of HADCA's finance committee, told the AGM: "It’s not going to be as easy ride in the coming months and years but if we stick together I’m sure we can make it happen."
HADCA dates back to 1963 and owns Community House on East Parade. The multi-purpose organisation supports local community and social action by providing information, support and fundraising.
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