One in six charities believe they could face closure in the coming year amid public spending cuts and falling donations, according to a new poll.
The online survey of 252 senior level charity workers, carried out between 18 September and 1 November and commissioned by the Charities Aid Foundation, also showed that nearly half of charities dipped into reserves over the past year to maintain their work.
Twenty-five per cent of charities said they had made staff cuts and 26 per cent had cut front-line services.
The survey found that 17 per cent of respondents said they could be forced to close over the next year and a further 40 per cent said they were concerned about closure if the economic situation did not improve. Eighty-one per cent of respondents said the sector was in crisis.
John Low, chief executive of CAF, said: "Times are tough and people have less money to donate to charities. This, combined with significant public spending cuts and increased demand for charity services, is having a shocking effect on many charities, calling into question their very viability."
Last month, CAF launched a new campaign, Back Britain’s Charities, with the National Council of Voluntary Organisations to urge the government, businesses and individuals to get behind good causes. To date, more than 1,300 organisations and individuals have signed up to the campaign.