Voluntary Service Overseas has seen its income drop by more than £10m to a total of £63m because of government cuts to its funding, the charity’s accounts for the year to 31 March 2019 show.
The fall in income is explained by a reduction in funding from the Department for International Development for the charity to help carry out the government’s International Citizen Service project.
The amount the charity received for the ICS – which gives British youngsters volunteering opportunities in developing countries – fell from £25.9m to £17.8m, the accounts show.
Spending on the ICS by the charity also fell by almost two-thirds, from £17.9m to £7.7m.
Total expenditure by the charity fell substantially too, the accounts say, from £73.1m to £64.8m.
This meant that the charity had a deficit for the year of £1.4m, once other recognised gains and losses were taken into account.
The charity supported more than a million people in 23 countries in 2018/19, 550,000 of whom were aided through its education programmes.
VSO health programmes helped 175,000 people, its resilience, inclusion and social accountability work helped 170,000, and 115,000 were supported by its livelihoods programmes.
This work involved 4,700 volunteers, the accounts show.