The calls come during Small Charity Week, which kicked off on June 19. 

The government has been urged to act now to save small charities and the communities they serve as campaigners warn groups are being “pushed to the brink”. 

Local charities from across the country have been by the side of people and communities, supporting them through a decade of austerity, a global pandemic and cost of living crisis. 

Demand for their services and support is rising as are income and fundraising challenges and their own running costs. 

This pressure may force small charities to cut services or close due to lack of resource, impacting millions of people, campaigners have warned. 

Of the 159,041 voluntary organisations in the UK, 96% are small charities which provide vital local services and have specialist knowledge about the community they serve. Yet small charities only receive just 17% of the total of charity sector funding according to SmallCharitiesData.org. 

Small charities’ share of the sector income has been declining year on year. 

By comparison the largest charities (those with an income over £100million) have continued to grow their income year on year. 

Government income makes up 21% of small charities’ income but this has also been declining year on year. 

As part of Small Charity Week small charities, and sector bodies, are coming together to celebrate the essential role they play in communities. 

Pembrokeshire FRAME in Wales supports people with Learning Disability and Mental Health. 

Chief officer, Paul Hughes said: “Small charities have had to reduce operations over the past year due to lack of funding, even as demand for services like food banks, homeless shelters, and mental health support has skyrocketed. 

"We are being pushed to the brink. The communities we serve are in dire need but may have no choice but to turn people away due to lack of resources. Last year we saw our fuel costs double from £1k to £2k per month. Funding is a main priority.”  

Carriers of Hope, West Midlands supports refugees and asylum seekers. The charity’s CEO Sue Sampson, added: “Our average attendance is 75 families a week. Clients receive one bag of food for which we charge £5. But the cost to us has gone up to £30. 

“Despite receiving some fantastic funding, the need for money and food donations is greater than ever. At current food prices we predict a £30,000 shortfall for food purchases going forward.” 

Government has been told it must recognise and support the significant role small charities play helping millions of people in need, particularly at the moment during the cost of living crisis. 

The Government did announce in the Spring budget some £100m of support, but months on there is still no clarity on when, how and to whom it will be paid out. 

This money is very welcome but also needs to be backed up by longer term change to support small charities

According to Lloyds Bank Foundation the main challenges cited by small charities is lack of funding, decreasing in public donations, increased demand for service, and higher running costs. 

Duncan Shrubsole, director of policy, communications and research at Lloyds Bank Foundation, said: “Time and again we’ve seen the value that small charities add to our communities, throughout the pandemic and the cost of living crisis. As more and more people are struggling to make ends meet, charities have been there for people with nowhere else to turn to. 

“These charities have kept people safe, cared for their health and wellbeing, provided a place to stay, food, warmth, and showers. Yet these same charities are facing their own crisis as funding sources dwindle. 

“We need better support for small charities right across the funding landscape from putting social value at the heart of commissioning and procurement of public services to providing long term, flexible and unrestricted funding and adequately resourcing small and local charities.   

“Small charities are the pillars of strong, connected communities. It’s time to recognize their true value and give them the means to continue their essential work. Our communities depend on it.”