The complete withdrawal of core funding from the trust is being made as it attempts to curb its spending. Currently, the trust earns £8.5 million a year, but pays out £10 million.
The overspend has led to a new set of principles which will see the trust “prioritise” future funding.
Continuing to benefit from trust support will be:
• Services provided by the three large trusts.
• Where possible, people in need through age, disability or circumstances within the isles.
• Where possible, the core revenue costs of organisations who support people in need through age, disability or circumstances within the isles.
Trust chairman, Bobby Hunter said: “The trustees want to direct the funding to activities which will improve the lives of the people of Shetland.”
Festival supporters learned of the decision through an email from organisers, which warned the “complete” withdrawal of core funding.
“Whilst we are optimistic about sourcing alternative finance to fill this £18,000 void, it is sensible for us to continually review all aspects of the festival we stage each year and how we operate.”
The Shetland Times will be investigating the issue of charitable trust funding in more detail for a reprot in next week’s paper.