THEY run railways, create peaceful gardens and act as good neighbours.Others prepare people for the world of work, offer help with access to vital services and provide home care for the disabled and elderly.

They are the army of nearly 20,000 unpaid volunteers who devote themselves to helping others in Leeds.

Yet while the social contribution made by the voluntary sector has long been acknowledged, its financial clout has often been overlooked.

Now a study published today highlights the enormous economic contribution of the band of more than 2,000 voluntary groups in Leeds.

Organisations within the voluntary, community and faith sector spend a staggering half a billion pounds a year in the city, making them major players in the Leeds economy.

A city-wide analysis shows that, including paid employees, there are more than 40,000 people working within the sector.

"There is a reluctance to talk about what we do in pure financial terms because we are a primarily concerned with people and communities," says Jane Daguerre, director of Leeds Voice which represents the city's voluntary sector.

Added value

"To simply reduce these to a financial valuation can seem demeaning. Instead as a sector we would rather talk of our 'added value'.

"If our activities mean that our communities are happier, healthier places to live, and our work with individuals means that they can resume a full and active part in society, then this can directly contribute to the economic life of the city in a way that will not appear on any balance sheet."

The Ripple Effect report calculates the total expenditure of organisations within the voluntary sector to be just under £430 million.

The figure represents a substantial contribution towards the estimated £9 billion overall gross domestic product of the city.

The study was carried out after Leeds Voice was not recognised as a full partner in the formation of a Regional Economic Strategy aimed at transforming Yorkshire and Humber into a world-class economy.

"Our public sector partners, such as the council, police and health trusts, are aware that they need the voluntary sector's help to achieve what they want to in in the city," says Jane.

"We work with some of the most marginalised and vulnerable people in the city so we can help in terms of narrowing the gap and reducing inequality.

"However, there has not been as much awareness – particularly in the economic and private sectors – of the fact that voluntary organisations make a major economic contribution to the city as well.

"There is a myth that because we are a voluntary sector we are populated mainly by volunteers.

"We wanted to show that we contribute significantly to the economic life of Leeds as well as the social fabric of the city."

Voluntary organisations carry out vital work in Leeds, the majority of them operating on a city-wide basis.

Among them are organisations such as the Crossgates and District Good Neighbours Scheme, which was recently awarded charitable status.

Meanwhile, the world's oldest railway at Middleton is kept going by a team of dedicated volunteers with the help of funding from the Lottery.

An increasing number of businesses also have volunteeers on their pay rolls.

Electronics firm Farnell employs more than 900 people in Leeds.

Bosses there have established a volunteering programme that encourages teams of employees to assist established local community groupsin their work.

For over a year now, teams of volunteers from Farnell have been assisting Armley Helping Hands develop and maintain their gardens so the group's elderly members have an outdoor social space and somewhere pleasant to sit when they visit the centre.

Cancer Research UK volunteers Richard Fryer, 64, and Gordon Lambs, 79, have helped to raise over £150,000 for the charity. Others provide vital home care for the sick and elderly.

The figure of £430 million includes the total spending of organisations from small charities to large housing associations on everything from rent to wages.

Funding

Employing nearly 23,000 paid staff, the voluntary, community and faith sector had more workers than the entire Leeds construction sector in 2005.

And almost the same amount of unpaid workers lent their services, with an estimated 19,097 volunteers.

The report calculated the "wage replacement value" of these volunteers to be almost £65 million.

But Jane Daguerre warned the sector could face problems in the near future because of changes in funding from the Government and Europe.

"This year I think the large organisations will still do well, but the small and medium sized ones might not."

The Ripple Effect report was due to be launched today by John Battle, MP for Leeds West.

The hope is that the report will result in the voluntary, community and faith sector being more widely recognised as an equal economic partner in the development and support of the city as a regional capital and as a vital lifeline to its most deprived communities.

"The reason we did the research is because people are much more aware of how the sector contributes to Leeds socially, but there is a lack of awareness of how much it contributes to the economy," says Jane.

"We should be given a seat around the table. Not just in discussing social issues but economic ones as well."