More than 20 jobs are at risk after a mental health charity announced it needs to raise £200,000 by the end of the year to remain open.
Sea Sanctuary, which is based in Cornwall, warned that its closure could be “catastrophic” for its beneficiaries.
The charity said in a statement that it had been hit by “the knock-on effects of a harsh economic environment [and] unprecedented spending cuts”.
Sea Sanctuary’s most recent accounts show that its income more than doubled from £420,000 in 2018 to £1m last year. But it has posted substantial annual deficits in each of the past three years, including a loss of £156,000 in 2020/21.
It provides ‘blue therapy’ activities for people struggling with their mental health, including trips on barges and yachts.
The charity’s reserves policy is to hold £80,000 in savings at all times. Several hundred thousands pounds could be released through the sale of its assets, but this would involve selling a barge used to deliver Sea Sanctuary’s services, the accounts say.
The 2021 accounts identify the potential financial risk associated with new sailing activities and say: “Income from these two operations is unlikely to be sufficient to cover all costs and therefore securing further grant income is essential.”
The charity said in a statement this week: “Unless successful in raising £200,000 by the end of December 2022, Sea Sanctuary will close, leaving thousands of vulnerable people across Cornwall with no access to mental health care.
“Many of the people we support are suicidal, and the result of our services ceasing to exist would be catastrophic.”
It added: “We are now facing the stormiest weather we have ever had to deal with and our charity is not immune to the knock-on effects of a harsh economic climate with unprecedented spending cuts.”