The cost-of-living crisis and soaring energy bills mean almost half of UK institutions cannot support any more people and 53% are worrying about their organisation’s survival.
The pressures come amid high demand for aid, including foodbanks, warns the Charities Aid Foundation.
Chief executive Neil Heslop said: “The relentless financial pressure on charities is continuing. Many are unsure how they will survive from month to month. Tens of thousands of charities are at full capacity.
“Sadly this means many are having to turn people away who desperately need their support.
“We cannot afford to have charities facing such uncertainty.
“The Chancellor recognised their critical work in the March Budget but now a longer-term plan is required to build the fantastic, hardworking sector back up.”
Around six in 10 charities say demand for help increased in the past year, with 31% saying it rose substantially. Now 53% of foodbanks, community groups and other good causes are operating at full capacity.
Of these, 41% say they cannot help anyone else and one in eight (12%) say they have already been forced to turn people away.
Jane Carter, fundraising manager at The Island, York, one of 600 charities surveyed by CAF, said: “We receive referrals from children’s services, schools and parents for children in need of mentoring.
“We have had to close for referrals just a day after opening as we cannot cope with the demand, which is very demoralising to our team who are dedicated to helping as many young people as possible.” Nina de Salis Young, of Money Matters Leicester, added: “We’ve been unable to take any new cases for three months. We are turning people away every week. It’s heartbreaking.”
Energy costs are one of the biggest expenses for charities.
Despite a government discount scheme for the sector, nearly a third (31%) have not been able to get support to cope with utilities costs.
And one in seven are locked into an unfavourable energy tariff. A third aim to improve long-term energy efficiency with government aid set to end in March.
