NCVO’s final Charity Forecast Survey for 2011 suggests charity leaders face a bleak 2012, with nearly two-thirds expecting their financial situation to worsen over the next 12 months.

The quarterly survey, which involved 100 charity leaders, found over half (55 per cent) felt that their general situation will worsen over the next 12 months. This increased to 65 per cent for the financial situation.

Some 67 per cent of respondents expect to collaborate more with other organisations over the next 12 months, and the same amount expect to compete more.

Further, 30 per cent of leaders quizzed said they plan to increase the extent of the services they offer over the next three months, and 27 per cent have plans to decrease paid staff numbers over the next three months.

Commenting on the findings, Sir Stuart Etherington, chief executive of NCVO, said: “While the sector cannot be immune from the cuts, it is essential that both central and local government do all they can to mitigate the impact of these cuts on the sector’s ability to provide essential services and support to vulnerable beneficiaries.

"Councils must manage cuts intelligently, engage the sector in the decisions they make and give charities adequate notice of funding cuts that will affect them.”