ONE of York's most prestigious charities, whose patron is the Duke of York, is facing closure due to lack of funds.

Despite recent cost-cutting measures, the future of the St William's Foundation, which is based at St William's College, alongside York Minster, looks bleak.

The charity, which organises the Duke of York's Community Initiative and generates debate on social issues, has suffered from dwindling subscriptions after raising them "to a more realistic level".

In a letter to members and trustees, foundation chairman Roger Hyde said its "solvency is in question".

"We have all treasured the special role of the St William's Foundation over the years," he said.

"Nonetheless, in an increasingly competitive market for funds and time and activity, we must now question the viability of our foundation."

The charity's part-time administrator and director, whose hours were cut to one day per week to save money, both recently resigned.

Established in 1983, the charity brings together figures from all sections of social life, including industry, education, churches and local authorities, to develop community projects.

It has guided dozens of schemes through the Duke's initiative, including the award-winning Riccall Regen Centre.

But Mr Hyde, who is a former senior Environment Agency official, said the initiative would carry on "whatever happened" to the foundation.

"It's very sad," he told the Evening Press today. "If we're to continue, something quite remarkable will have to happen in terms of income.

"To do our job properly, we need £50,000 a year.

"I think it has run its course. If it hadn't, then we would still be getting the money coming in."

Former distinguished patrons of the foundation have included the Archbishop of York Dr David Hope, the Duchess of Kent's brother Sir Marcus Worsley and the Earl of Halifax.

Mr Hyde added: "Rather than beating our breast about it we should just accept it and celebrate our achievements.

"We have been very successful."

An extraordinary general meeting has been arranged for June 10 in an effort to resolve the situation.

Alison Seabrooke, development director of the Regen Centre, said they applied to the foundation to get the project off the ground.

She said: "It's a shame what has happened in one sense but things like this sometimes need to happen to move things forward. We wish them all the best."

The foundation's achievements have included the creation of action programmes, such as the Transpennine Movement and the Technological Education Programme.

Updated: 11:09 Monday, May 27, 2002