Sixty-three per cent of voluntary organisations in Yorkshire and the Humber expect to cut staff numbers in the next three months, according to a survey.
Only 12 per cent expect to hire more staff, with the remainder expecting no change.
Seventy per cent expect their financial situation to worsen over the year; only 6 per cent expect it to get better.
The survey was carried out among third sector members of the forum and received 70 responses.
"The main feeling that we have had is that it’s getting much gloomier," said Alison Haskins, deputy director of the forum. "We’ve carried out this survey every three months, and it has got worse over that time.
"Another major finding was that 48 per cent of respondents expect the public sector to have a negative effect on their organisations, compared with only 14 per cent nine months ago. This is likely to be the effect of impending cuts."