At least a dozen voluntary groups were today in crisis and facing closure after losing funding from Bradford Council.
They include Bradford's Karmand Community Centre where an emergency meeting of the management committee is being organised.
But more than 100 groups are jubilant after submitting bids which were approved by yesterday's executive committee.
For the third year running there has been joy and heartbreak in the annual allocation from the Council, which has tried different methods of funding in a bid to be fair and give the public good services. This time the Council set up commissioning bodies which dealt with bids from the groups to provide services, with the aim of ending duplication and achieving value for money in communities.
But Labour Group leader Councillor Ian Greenwood asked for the introduction of the new system to be deferred until the next financial year, with further work on clear timescales, consistency and a clear mechanism for appeals.
But his amendment was voted down and the committee agreed to go ahead with the funding recommended for 155 groups which will contribute to services including facilities for under-fives, anti-crime and crime reduction projects, and advice for the public.
The Council had set aside £5.6 million for the services, but about £88,000 is unallocated and maybe used for other groups.
Coun Greenwood said: "A significant number of organisations vital to the community are cut to the bone or annihilated. It will have a profound effect on communities."
Councillor Dave Green (Lab, Odsal) said it "cut at the heart of the communities". But Councillor Kris Hopkins, executive member for the community, said the allocation of £5.6m for voluntary groups was the biggest in West Yorkshire and probably the highest in the country.
He said there were other external funding streams for groups.
After the meeting, Chris Murdoch, funding officer for Keighley Voluntary Services Bureau, said a huge amount of good work was being done by the groups and there was disillusionment about the Council and new system.
Rashid Ahmed, manager of the Karmand Centre, said the grant had been cut to £41,000 and was not enough to keep them going. "About 1,000 people come through the door a week and there is no other alternative service for the area." Acorn Videos, which makes videos for voluntary groups, received £40,000 - £1,500 below what they had asked for.
But video-maker Tam Carr said: "We are hugely relieved because we know some groups have not been successful."
Staff at Keighley Kiddicare were celebrating after getting £136,267 - the first time it has not been cut for a few years.
Project co-ordinator Bryan Walkeden said the funding would cover the 40-place under-fives day nursery in the Highfield area of the town for mainly lone parents.
Javed Ashraf, of the Key House Project in Grattan Road, which helps to find homes for young people and offers an advice service, said the £129,000 awarded yesterday was £30,000 less than they had wanted, but they were still pleased.
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