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Mayor's Fund feels pinch as downturn affects donations
Pippa Crerar, City Hall Editor30 Jan 2009
BORIS JOHNSON'S Mayor's Fund to support poor Londoners is struggling to raise money as a result of the credit crunch, the Evening Standard has learned.
Wealthy individuals still have thousands of pounds to donate to good causes but the fund's insiders admitted donors have grown more cautious during the downturn.
And while they are still prepared to make donations, they have been putting more conditions on how their money is spent before agreeing to contribute.
The launch of the charitable fund -which is being run at arm's length from City Hall - has already been delayed since Mr Robinson's appointment in October. It was originally expected before Christmas but will now not take place until March at the earliest.
The charity hopes to raise £100 million over the next four years with much of the focus on social and educational projects and voluntary groups which tackle child poverty in London.
Sir Trevor Chinn, chairman of the Mayor's Fund, and Chris Robinson, its chief executive, have had to gather more detailed information about the projects which will benefit.
A City Hall aide told the Standard: "I can understand the assumption that the credit crunch was making it more difficult to raise money, but in fact it's more about the nuts and bolts, how the money is going to be spent.
"People were saying we need to know about where our money is going before we contribute. But I'm sure the consequences of the credit crunch are not altogether irrelevant. Our donors are understandably fussier about what they're doing with their money, whereas before they'd just write out a big cheque."
A Mayor's Fund insider added: "Invariably people want to know where their money is going.
"We've only ever operated during the recession so it's very difficult to determine the impact. The recession does mean that the need is stronger."
Labour's deputy leader on the London Assembly John Biggs said: "The Mayor's Fund is an interesting and innovative idea but charity cannot and should not replace on any level the public services Londoners need.
"Statistics show that lower and middle income earners make far higher charitable contributions than their wealthier counterparts so it's not a massive surprise that donations from the City are drying up in the tougher times."
Reader views (7)
Common Everyone! Give Boris a chance - He is one of the few politicians that seems to be genuinely trying to deliver on all his plans. He is certainly not responsible nor can he be blamed for the meltdown in the Economy.
Stay with it Boris!
- John, Edgware MIDDLESEX, 25/02/2009 17:44
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To paraphrase Boris.
It was the right type of appeal, just in the wrong quantity.
Another ill conceived idea that has fallen at the first hurdle.
- Andrew, London, 04/02/2009 22:06
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Ooops, such high hopes, such poor returns. Bungling Boris has another great idea...
- Steve, London, 02/02/2009 16:05
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You would think he could have a whip round all his old school mates. Afterall, those who went into banking must have made a fortune by now!
- Melvyn Windebank, Canvey Island, Essex, 01/02/2009 17:35
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The Mayor is wasting the money of Londoners on two things they do not want. The first is the Olympics as stated above and the second is the £16bn Crossrail where the City, Canary Wharf and Heathrow have kindly nominated taxpayers to pay and underwrite the £16bn while the primary beneficiaries who include the City and developers pay the least contribution. The Mayor is responsible for not helping Londoners while helping the City and its interests to feed in the trough. Politics and business is failing the people of London and the UK. Change is needed.
- Val Keller, London UK, 01/02/2009 10:18
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Boris could help poor Londoners if he were to dip into the olympic fund and distribute some of that money. It was, after all, provided by tax payers - most of whom are opposed to hosting the games in London. I am sure Londoners would appreciate the mayor's assurance that council taxes are not going to be increased as a result of the olymnpic funding fiasco
- R.F., Yorks, UK, 31/01/2009 10:35
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Yes and a lot of those donors have found Johnson's delivery has not matched his election promises. Very sad.
- Richard, London England, 30/01/2009 22:32
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