Two-thirds of voluntary organisations in Newcastle upon Tyne only have enough funding to provide their services for up to a year, according to a report by Newcastle Council for Voluntary Service.
A survey on the impact of the economic downturn and public sector spending cuts on Newcastle’s voluntary sector found that only 15 of 46 organisations had sufficient funds to provide services at their current level for more than 12 months from March this year.
Thirty-nine per cent of the charities surveyed were also either "slightly unconfident" or "not at all confident" of being able to deliver their services until March 2012.
Five out of six voluntary groups in Newcastle rely on the public sector for some or all of their income.
"We are asking decision makers and funders to ensure that any cuts allow a reasonable level of service to be maintained," said Sally Young, chief executive of NCVS. "Much of the work done by local charities is essential and saves the public sector considerable amounts of money."
The report recommends that impact assessments should be made of cuts. Other suggestions include giving charities sufficient notice of funding cuts so they have time to consider if they can deliver services in a different way.