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A £500,000 emergency fund set up by the government to save voluntary organisations from closure following council funding cuts, has been three times oversubscribed, leaving 39 organisations facing a cash crisis.

Twenty six voluntary organisations have received money from the fund, announced in March by home secretary David Blunkett.

But Chris Penberthy, director of the National Association of Volunteer Bureaux, said: "The harsh reality is that for those who were unsuccessful in their applications to the emergency fund will now face a substantial cut in their ability to deliver their services, and many face closure over the coming months."