Trust and foundations say the number of funding applications they receive has increased significantly over the past year.
David Emerson, chief executive of the Association of Charitable Foundations, said: "Members are reporting that the applications have ramped up massively."
He told Third Sector this was, in part, because organisations that have lost council funding to provide local services were approaching foundations for support instead.
"Councils are not approaching foundations directly," he said. "Instead, what we're getting is the organisations behind services that have been cut by the council coming to us."
Linda Kelly, chief executive of the Lloyds TSB Foundation for England & Wales, said the number of eligible applications it had received in 2010 had increased by 24 per cent compared with 2009. It makes about 900 grants a year and received 2,529 eligible applications in 2010, she said.
Kelly said increasing numbers of small charities had cancelled grants given for the core costs of a project because they were unable to find another funder for the project itself.
Sioned Churchill, one of the grants directors at Trust for London, said there had been a 12 per cent increase in the number of organisations applying for grants between its October 2009 deadline and October 2010. She said it was expecting another significant increase by its next deadline in February.
"We are seeing more people come to us who are having statutory cuts to see if we can help them," she said.
Churchill said that even though the trust had a policy of not replacing statutory funding, it was "looking sympathetically" at ways in which it could support organisations in this position, providing the organisation's services fell within its funding priorities.