Exit Prince Charles, stage left, as Royal Ballet decides there's nothing like a Dame

Dame Beryl Grey is to pip the Prince to the post of patron, as other bodies fear a 'royal' prefix makes them look elitist and out of touch. By James Morrison

The Royal Ballet, one of the most enduring bastions of royal patronage, is preparing to drop its regal figurehead for the first time since its foundation.

After months of consultation, the 44-year-old company is understood to be about to replace Princess Margaret, the inaugural president who died last February, with a mere civilian. In a move that comes as a snub to the Prince of Wales, many people's favoured candidate, the ballet is expected to appoint Dame Beryl Grey, 75, one of Britain's premier ballerinas and the company's vice-chairman.

The decision will open up a debate about whether it is still in the interests of charitable bodies to have members of the Royal Family as patrons.

One leading charity privately told The Independent on Sunday last week that having Prince Charles as patron had become a liability in the wake of the collapse of the Paul Burrell trial. It said that media coverage had shown the prince as pampered and profligate.

It is thought the Royal Ballet would be the first institution with a royal charter to dispense with a royal figurehead. However, it would not be the first major fundraising organisation to break off royal connections. Last year, Barnardos appointed Cherie Booth to succeed the late Diana, Princess of Wales as its president – the first non-royal to hold the post for 50 years.

Other charities who had the princess as a symbolic head, including Centrepoint, have also opted for celebrity patrons rather than royals.

Meanwhile, organisations as diverse as the Royal National Theatre and the Royal College of Nursing are considering dropping their "royal" prefix because they believe it makes them sound elitist and out of touch.

The Royal Ballet says that "no final decision has been taken" on Princess Margaret's successor. However, sources confirm Dame Beryl as a near-certainty, partly because the governors have found it impossible to think of a prominent royal who knows anything about ballet.

Like patrons, presidents of royal institutions and charities are seen as little more than symbolic figures, but they are sometimes expected to fulfil a more hands-on role, chairing the odd meeting and attending major functions.

Certain royal patrons have been undeniably hardworking. Since she became president of Save the Children in 1970, the Princess Royal has helped to raise millions. The Duchess of Kent has also been praised for her work with such charities as Unicef and NCH Action for Children.

Though no ballet expert, Princess Margaret was a lifelong fan, and she is said to have made a point of getting to know company members personally. Prince Charles, who is president of the Ballet's sister company, the Royal Opera, was seen as his aunt's obvious successor. However, despite lively discussions among the Ballet's Covent Garden elite, he has never been approached for the job – a fact confirmed by royal sources this week.

Insiders insist that the decision to side-step him has more to do with his lack of interest in ballet than with any attempt to snub the royal household.

They point to the obvious qualities of Dame Beryl, who at 14 became one of the youngest dancers to perform Swan Lake, and 61 years later remains a formidable ambassador for the ballet.

It is also known that one of her keenest advocates is the Ballet's outgoing chairman, Lord Sainsbury of Preston Candover, with whom she has served on a number of other boards. Conspiracy theorists suggest his enthusiasm for her owes much to his determination not to have to relinquish complete control when he steps down in the next few months.

However, some observers see the move as having far wider significance. To them, the Royal Ballet is reflecting a growing mood among established institutions that they no longer need to rely on royal patronage to maintain their profile.

Michael Westerman, a partner with the Midas Partnership, a fundraising consultancy, said that having a royal patron or president could be a crucial factor in helping fledgling charities to attract donations.

But he added: "There are certainly many organisations that do not need a royal patron.

"It comes down to a choice between being seen to be doing the 'right thing' or having to raise money urgently to stop your charity going under."

Andrew Thomas of Charity Consultants Ltd added: "I know a number of organisations that have had a royal person associated with them and, whether because of the nature of their aims or a bad piece of publicity, they're not quite sure if it's a good idea to keep them on."

While many charities that were set up to combat deprivation retain nominal royal ties, others have studiously avoided ever associating themselves with the monarchy.

Tim Moulds, the associate director of Christian Aid, said it would be "quite wrong" for the charity to have an ambassador who hailed from one of the world's richest families.

"One of the causes of poverty is the fact that there is so much inequality in the world," he said. "It would be wholly inappropriate for us to have someone on our board who was one of the richest people in the world."

If Dame Beryl does succeed Princess Margaret at the helm of the Royal Ballet, she is unlikely to have a smooth ride.

One well-known former critic has already questioned the wisdom of appointing someone who was so closely involved in last year's "disastrous" decision to appoint Ross Stretton as the company's artistic director. The fiery Australian was sacked in the summer amid criticism of his erratic casting policy and allegations that he had had "inappropriate relationships" with ballerinas.

However, Dame Beryl does have her supporters. Maina Gielgud, Mr Stretton's predecessor as director of the Australian Ballet, said: "Her associations with the Royal Ballet go back to when she was very, very young, so there are all sorts of good reasons why they would want her."

The Royal Box

By Andrew Johnson

More than 400 organisations and institutions have the Royal prefix. Fifty are waiting for a new patron after the death of the Queen Mother.

The Royal College of Nursing is considering ditching its royal prefix, granted in 1939, so it will not appear elitist.

Prince Edward is a patron of 15 charities, the Queen 700, the Prince of Wales 314 and the Duke of Kent 100-plus.

The Royal Mail used to be the personal service of King Charles I until he opened it to the public in 1635.

Edinburgh's Royal Botanic Garden gained its royal charter in 1699 but did not appoint its first royal patron, Prince Charles, until July this year.

The Royal National Theatre is phasing out the use of the word royal from its official literature and letterheads.

There is no law preventing an organisation adding the word royal to its name without a royal charter or the permission of the Royal Family.