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Almost two-thirds of charities have shed staff and vital services as they are pressured by falling income, staff attrition and a decline in public donations, according to new research.
Rathbones experts have warned that the vast majority are considering leaving their roles amid the dire circumstances in the sector.
Research Investment experts found that 95% of executives in the sector are thinking about leaving.
The survey of 100 charity owners also found that 64% have already had to make redundancies and cut vital services due to financial strain.
Andy Pitt, head of charities at Rathbones, said: “Our research shows that amid falling incomes charities are being forced to take drastic measures such as stopping stock market investments, selling assets and making redundancies.
“These decisions are impossibly difficult to make and many people think it will be a year or two until they can expect their income to increase again.”
The research found that charities have been hit by a “perfect storm” of weaker income due to a decline in donations coupled with increased pressure on charity staff.
Nearly half of donors said their income had fallen between 10% and 15% over the past two years.
The majority of donors surveyed warned that they expect the autumn budget to have a negative impact on their organisation, while 87% already fear they may not absorb the higher pay and national insurance costs that came into force earlier this year.
Mr Pitt said: “UK charities are entering autumn Budget With genuine concern.
“Many are already bearing the pressure of lower donations and rising operating costs, including higher minimum wages and employers’ National Insurance contributions.
“With 70% of charities expecting a financial impact from the upcoming Budget, there is real concern about how potential tax rises and benefit cuts could impact their ability to provide vital services.”