Vulnerable bodies in recession

Mar 31 2009 by Bill Midgley, The Journal

AMONG the continuing and inevitably increasing number of organisations suffering from the recession are two types of bodies that deserve special consideration.

These are certain charities and selected recipients of sponsorship, particularly in sport. As the credit crunch bites ever deeper both companies and individuals will seek to make savings and contributions in both of these areas will inevitably be amongst the first to disappear.

Many charities, particularly those involved in the provision of services to the socially excluded and in health, such as the hospice movement, carry out work that many would argue is the responsibility of Government at either local or national level and is what we pay an increasing amount of tax for.

The reality is that the Government simply fails to deliver and without the charitable or third sector large parts of our population would suffer. That is not to decry the substantial funds paid by Government to such charities for the services that they carry out, but those funds are coming under increased pressure as the authorities seek to demand more for less!

The subsidy of these services, therefore, that the charities have to seek from contributions elsewhere increases. Improved efficiency in the provision of services has to be welcomed, but there is a limit to the savings that can be made and governmental authorities need to accept that a constant request for so called efficiency economies eventually starts to bite into the core of an organisation.

Perhaps Government might be more concerned by ensuring that essential services to vulnerable members of our community have a somewhat higher priority than those individuals in Parliament who seek to look at ways of abusing their own benefits payment system.

Similarly, many sporting organisations will find that the funds that ensure their existence will no longer be available.

While I find it somewhat strange that the taxpayer, through the banks that we all collectively own, continue to pour vast amounts of money into football, rugby and cricket, it is those small locally based sporting bodies that are likely to feel real hard- ship.

Sponsorship of as little as £500 can mean that such bodies continue to exist.

At some stage in the future the recession will end and we also need to hold together during difficult times the structure of our community.

Bill Midgley is a North East business executive and former chairman of the British Chambers of Commerce