Some 30 NCVO staff are expected to lose their jobs as the organisation announces a consultation on its post-spending review restructure.
NCVO anticipates that 66 of the existing 117 posts are at risk, including posts funded by Capacitybuilders which was culled by the coalition government and will cease to exist at the end of March next year.
The Office for Civil Society had also announced in August 2010 that its funding to the NCVO would be halved as part of a programme of cuts to its strategic partner scheme which will see 27 organisations cut from the programme altogether.
However, a restructure which will see new services provided to NCVO's 8,000 members will mean that a possible 37 new posts could become available.
As part of the restructure NCVO will provide office space to some of its members by expanding its Kings Cross office to increase the number of tenancies available. It will also provide a new parliamentary advice service, increase direct support via consultants and increase its support in the areas of public services and the Compact.
Chief executive Sir Stuart Etherington (pictured) explains: "Like many of our members, NCVO is affected by cuts in public spending. Over the last 18 months we have been consulting with our members, staff, assembly and partners about what our priorities for the future should be in the context of reduced public funding.
"We have taken a fundamental look at what we do, how we do it, and how best to represent and support the sector into the future," he said, adding that he is "very sorry that because of public funding some posts will cease to exist".
Staff consultation will continue until 7 January and a new organisational structure will begin from 1 April.