The income of the National Council for Voluntary Organisations fell by more than a quarter in the year to March 2012, according to its annual report and accounts published this week.
Its income for the year fell by £2.75m, from £10.14m to £7.39m – a drop of 27 per cent.
The main reasons for the drop were a reduction in the infrastructure body’s core grant – from £1.09m to £500,000 – from the Cabinet Office, and the loss of all funding from Capacitybuilders, which in 2011 gave the NCVO £1.6m in four separate grants to supply advice, campaigning and support.
The NCVO ended the financial year with 88 employees, down from 115. The charity had initially cut a third of its staff, but numbers increased following mergers with the Third Sector European Network and Know How Non-Profit.
Membership also dropped, from 8,375 to 8,321.
In his introduction to the accounts, Martyn Lewis, chair of the NCVO, said: "This year has been one of significant upheaval for us, as for many in the sector, as we adjust to changes in our funding and build financial sustainability.
"We have, as always, endeavoured to be a strong voice for the sector, influencing debate on a number of important issues."
Lewis singled out the Give it Back George campaign, which led the government to abandon a proposal to cap tax relief on charitable donations, as one of NCVO’s notable successes of the year.