A grant maker, which has invested £70m in good causes since it launched two decades ago, is warning of a “deepening crisis” impacting funding for charities.

Leeds Community Foundation says that it “has never seen such intense demand combined with so many groups struggling to access the funding they need to continue their work”.

It warns that so far this year it has only been able to fund three in ten charities that have applied for grants. This is down on figures from 2023, when almost two in five applicants were successful.

The funder cites figures from April showing that more than two in five community organisations and charities in Leeds are, or maybe, at risk of closure. Almost four in five are facing the likely cuts in services and almost half said funding and financial sustainability was their greatest concern.

This situation for the city’s charities is compounded by a national slump in donations and increase in demand.

“Our 20th anniversary is an opportunity to celebrate what we’ve achieved together, but also to be honest about the challenges ahead,” said Leeds Community Foundation’s chief executive Steph Taylor.

“Across Leeds, brilliant community groups are stepping up every day to tackle loneliness, mental health, poverty and inequality.

“Yet too many are now facing closure because the funding simply isn’t there.”

She added: “Now more than ever, we need businesses, donors and individuals to work with us to protect these vital organisations that make our communities stronger.”

A survey published by gas network Cadent and Thinks Insight & Strategy last month found that more than half of charities fear they may not be operating in the next five years due to rising costs, increasing demand and dwindling funding.

---