Charities remain hopeful about the future even though two-thirds expect to make cuts in the coming year, a poll has shown.
A survey of 72 third sector organisations by social enterprise Can Mezzanine found that all were optimistic about the future, even though 80 per cent said they had been badly affected by the economic downturn.
Half of respondents said they had reduced cash flow and staff costs, with a third experiencing falls in donations and grants. Two-thirds of organisations are planning further cuts in the coming year, with one in six predicting the worst is yet to come as competition for grants intensifies.
Two-thirds of those polled planned to expand their trading activities and half said they were "exploring new markets". Andrew Croft, chief executive of Can, said the findings showed the sector was "robust and inventive" in terms of combating the negative impact of the recession.