The value of grant-making fell last financial year despite a record amount of money going in to trusts from private individuals.

Figures released by the Community Foundation Network (CFN) showed a 60 per cent rise in the number of donors setting up their own charitable funds over the 2008/2009 financial year. New donors contributed to a record-breaking £33.5m having been made available to charities via local foundations during the recession year.

However, despite the increase in the number of charitable funds, the value of grant making fell by 15 per cent over the year.

Stephen Hammersley, chief executive of the CFN, said that the increase in the number of funds demonstrated a “blitz spirit” among new philanthropists and was a “tremendous achievement”.

“It means that as we come out of recession local community giving has the potential to underpin recovery and to make a real difference across the country,” he said.