More than nine in 10 charities have introduced restrictions on their services in response to increased funding pressures, new research has found.
The investment management provider Rathbones Group commissioned the market research company Pureprofile to interview senior people at 100 charities holding more than £5bn in investments.
The research, which was conducted in July, found almost all of those polled (96 per cent) said they had introduced restrictions at their organisations.
Eight in 10 respondents said their charities had tightened access to services and restricted eligibility criteria in response to financial challenges.
Participants said their charities had also introduced or lengthened their waiting lists (28 per cent), had been forced to pause or cancel programmes (16 per cent) or reduced the areas they serve (14 per cent).
More than a third (35 per cent) of respondents said their organisation was relying on volunteers to fill in for professional staff.
“[Charities] are warning of more consequences to come if funding does not improve in the next 12 months,” the report says.
“At the extreme end, services are at risk of disappearing from communities altogether, with around one in seven (15 per cent) saying they face permanent closure, while a third (34 per cent) will significantly reduce or restructure core services.”
More than three-fifths (62 per cent) of respondents said demand for their services had increased in the past two years, including 9 per cent who said it had increased dramatically.
David Cox, director of charities at Rathbones, said: “Charities play a major role in supporting families and individuals across the UK and the cuts to services will have a major impact.
“Charities are being squeezed from both sides by a drop in income and a surge in demand for their services, which means it is vital they maximise their revenue through all means possible, including investments.”