Nash college has not had the luxury of extra funding from a charitable trust. It is dependent on Learning and Skills Council funding, which until this year left it with an annual shortfall of pound;300,000.
The college, in south London, is one of five schools and colleges run by the Shaftesbury Society, a Christian charity founded in 1844.
It has 60 day and residential students with learning difficulties, ranging from moderate to severe and complex. Many students also have severe physical disabilities and communication difficulties.
Two years ago, Ofsted found the college's provision and leadership inadequate and criticised a lack of LESS THAN strategic direction by the charity.
Unlike the Treloar Trust (see story opposite), the Shaftesbury Society has not had the resources to subsidise the college. It owns the land and buildings but the college pays the society rent.
Now Nash college has been turned around under new leadership. Principal Andrew Giles said a recent re-inspection has been successful. The college has worked with the London South LSC to address its funding shortfall, and now claims additional funding for residential students.
The Shaftesbury Society's other specialist FE college, Hinwick Hall, in Northamptonshire, faces similar financial pressures.
Spokesman Nick Davies said: "I think it would be fair to say it faces the same challenges."