Youth charities the Prince's Trust and Fairbridge will come together on 1 April 2011 and provide a nationwide service to over 50,000 young people.
Both organisations faced falling incomes and budget shortfalls last year and hope savings can be made at the same time as improving services for disadvantaged young people.
The Prince's Trust's income had fallen from £42.3m in 2009 to £36.4m in 2010 - a drop of £6m. Fairbridge spent more than it earned in 2010. Its income was £11.3m but it spent £11.5m.
Martina Milburn, chief executive of the Prince’s Trust, will become chief executive of the new combined organisation. She said there was a commitment to maintain the level of staffing, as Fairbridge currently has 300 employees. But she did not rule out redundancies:
“We aim to protect frontline delivery whilst seeking cost savings on administration. It’s too soon to tell if there will be any redundancies but we will do all we can to protect jobs.”
She added: “Both the Prince's Trust and Fairbridge are on track to meet their budgets this year. As a large, established charity, the Prince's Trust is in a strong financial position and does not anticipate any major funding difficulties in the foreseeable future.”
Andrew Purvis, chief executive of Fairbridge, will step down before the merger in April. He said: “By joining forces, Fairbridge and the Prince’s Trust will continue their vital work in communities across the UK and deliver a broader, more cost-effective service to young people who need our support.”
Although the combined organisation will be called the Prince’s Trust, the 15 Fairbridge centres across the UK will continue to operate under this name and plans are under way to open a new centre in Yorkshire and the Humber.
