The income of the national volunteering charity TimeBank fell by 55 per cent in 2011/12 after the organisation lost government funding worth £500,000, according to its annual accounts.
Its income fell from £1.3m in 2010/11 to £570,000 in 2011/12, the accounts say. Voluntary income fell to only £2,590 in 2011/12, compared with £542,120 in 2010/11.
The accounts show that funding of £500,000 from the Office for Civil Society, made under the strategic partners programme but being phased out by the current administration, represented 76 per cent of the fall.
TimeBank, which runs mentoring and youth volunteering projects, recorded a deficit of £274,600 in 2011/12, despite making significant cuts to staffing and operational costs.
Its expenditure almost halved to £844,620 in 2011/12, from £1.6m in 2010/11.
Helen Walker, chief executive of TimeBank, said the loss of the OCS funding was a "big blow", but the charity was thriving after gaining funding from other areas. "Losing our funding as a strategic partner of the OCS was a big blow to TimeBank," Walker explained. "The £500,000 grant represented a quarter of our income and meant drastic staff cuts and focusing on our strengths."
The charity announced in 2011 that it would have to lose 11 of its 34 employees after it failed in its bid to have its strategic partners funding renewed. "But less than two years later, TimeBank is thriving," said Walker. "We have continued to deliver our renowned volunteer mentoring projects and employee volunteering programmes."
According to TimeBank’s website, projects are currently funded by a number of organisations, including ministries such as the Department for Communities and Local Government, NHS trusts and private companies such as Sony and BT.
The charity’s annual accounts said: "Further reductions in core costs are planned for 2012/13, although an increase in charitable spending is also expected."