The Institute of Fundraising has opened a consultation with staff about a proposal to cut four of the 35 jobs at its London headquarters.
Peter Lewis, chief executive of the IoF, said external circumstances had been changed by the reduction of its grant from the Office for Civil Society and by higher VAT payments on its expanding training and conferences work.
He said the institute had had a successful year, increasing the number of conferences from 12 to 15, doubling its number of corporate supporters, increasing the number of organisational members and maintaining its level of individual membership of about 5,300.
But Lewis said the grant from the OCS's strategic partners programme had fallen from £250,000 last year to £136,000 in 2013/14; and the institute’s irrecoverable VAT on business activities had gone up to £179,000 in 2012/13 from £122,000 the previous year.
"That VAT increase of £60,000 would be equivalent to two members of staff," Lewis told Third Sector. "Because we’re delivering more business, that figure will only continue to grow. The proposed loss of staff is driven by external circumstances."
Two full-time staff in Scotland and two part-time staff in Wales would not be affected, he said. "Our strategic objectives remain the same and part of the consultation is about how best to deliver those objectives."