Almost half of charities have reduced or stopped activities in the past year because of worries about meeting their costs, according to a survey of charities' risk profiles.
The 2009 Charities Risk Survey, carried out by accountancy firm PKF and the Charity Finance Directors' Group, says that 45 per cent of the 1,000 organisations surveyed had adjusted their activities because of cost worries, and 15 per cent had stopped a service or activity completely.
International charities have been the worst affected, it says: 82 per cent from that sector had cut back on activities and 33 per cent had stopped work completely in at least one area.
However, 61 per cent of housing charities and 51 per cent of grantmakers said there had been no change in their activities because of costs.
"Uncertainty and income reductions appear to be having an impact on the operational activity of the sector," the report says. "Although this should be targeted on the least important aspects of their work, it is likely that beneficiaries will begin to notice the impact."