Free music and food festival Brixton Splash has launched a crowdfunding appeal to raise £20,000 after funding cuts have left it facing an uncertain future.

The annual street party, run by a non-profit organisation staffed by volunteers, is due to take place on 3 August, but after the loss of local government and company funding it is at risk of not going ahead.

An appeal has been launched on the crowdfunding site Buzzbnk asking for donations from £1 upwards to help secure its future.

Jo Birch-Phaure, Brixton Splash’s PR director, a volunteer and Brixton resident, said this year’s costs have increased rapidly due to the rising price of venue hire and infrastructure.

The festival gets an Arts Council grant of around £20,000 for the workshops and outreach work it does with the local community, but this year has lost £13,000 from the local council.

Several businesses have also pulled back on support, Birch-Phaure said.

“This year is make or break,” she said. “Losing vital local government funding was a blow, leaving us with a huge but not insurmountable task on our hands.

“If all of the 20,000 people who have passed through last year donated just a pound, that would go a long way to building a sustainable future for the undisputed coolest street festival in South London.”

Brixton Splash aims to celebrate the area’s vibrancy and diversity. The festival is supported by 50 volunteer stewards, including many from disadvantaged communities, she said. It also provides an opportunity for local young people to showcase their talents and gain experience both onstage and behind the scenes.