More than £100m is likely to be slashed from voluntary sector funding over the next few weeks after cuts to council budgets, local umbrella body Navca has warned.
The Communities and Local Government department announced last month that it would immediately stop funding £1.2bn of local authority grant programmes, including many programmes that fund local charities.
Many local charities funded through these grant programmes will receive no further payments from councils, said Neil Cleeveley, policy and communications director at Navca.
"If only 10 per cent of the cuts are passed on to the sector, we'll have got off lightly," he said. "Many charities will receive no further money from this month onwards. Some might not even get what they were promised for work they have already done."
Neil Johnston, chief executive of the Paddington Development Trust, a community-led social regeneration organisation based in west London, said he expected to lose hundreds of thousands from his £3.4m budget in the immediate future and millions more next year.