Voluntary organisations in Scotland saw their income fall by almost £100m last year, according to new research.
The Scottish Council for Voluntary Organisations said some groups were having to dip into their reserves to keep services open.
The body said as many charities faced budget cuts they were also having to deal with an increase in demand for their services.
It has called on ministers to commit to longer term funding agreements.
The SCVO said income for charities fell by £96m in 2010, with some of that drop a direct result of public spending cuts – some councils have cut funding for local groups.
More than 270 voluntary groups responded to the survey.
