Civil society organisations are facing a worrying period of insecurity as a hung parliament appears nigh on certain, many sector commentators warned today.

The Charity Commission is considering a request by Charity Bank to change its governing documents to allow it to distribute profits to its charitable shareholders, a decision that could have wider implications for all charitable companies.

The loan book of the Social Investment Business should be sold and the proceeds passed to the new Social Investment Wholesale Bank, according to NCVO chief executive Stuart Etherington.

A survey commissioned by Charity Bank has found that more than 20 per cent of charities have suffered from the cancellation of contracts with businesses and government bodies during the last year.