Almost two-thirds of charities expect their income from government to fall over the next 12 months, a survey by accountancy firm Baker Tilly has indicated.
The poll of 170 charities, carried out in October last year, found that 36 per cent had experienced a drop in government funding during 2009, and 65 per cent expected a drop over the next year.
It also found that 93 per cent had suffered a fall in investment income over that period, and 55 per cent expected a further decrease over the coming year.
However, half the respondents said there had been no change in their total income over the past 12 months, and 31 per cent said they had experienced a fall of less than 10 per cent.
More than a third of those polled were considering a merger.
Fifty-nine per cent of respondents had never heard of the Compact, and only 8 per cent had found it useful.