I've not always been a great supporter of EFDSS, but a few points:

Clearly, they have not had all their funding withdrawn, and that needs correcting in this thread.
The difference between, say, the opera situation and EFDSS is that there will still be opera in London if ENO moves. EFDSS is the only national folk arts organisation.
Yes, membership could be boosted, and there has not been a membership campaign for very many years. Why is EFDSS reluctant to do this?
Although there might not be as many EFDSS initiatives in the provinces as some would like, the online resources of the VWML are, personally speaking, invaluable. No trips to London needed to see them .. I can access them in Cheshire. That initiative was funded by the Arts Council.
Finally, EFDSS has to be located somewhere and it has a listed building in London.
Derek