HALF of Nottingham's voluntary groups fear they will be forced to close services in the next year.
And one in ten have said they might have to close altogether as funding cuts bite.
Angela Kandola, of Awaaz, a group which helps people with mental health problems, said: "Everywhere has been struggling in the face of the cuts, and we have lost a lot of our funding which has made it hard."
These revelations follow a three-month survey by the Nottingham Community and Voluntary Service (NCVS).
The State of the Sector survey revealed that:
54 per cent of groups might have to close a service in the next 12 months
11 per cent think they might close altogether
62 per cent say the funding they have doesn't cover costs
91 per cent said the government's welfare reforms would affect their clients in some way
NCVS chief executive Helen Kearsley-Cree said: "We're finding that the term "more with less" is becoming an unofficial mantra for Nottingham's voluntary sector, and one the sector is none too happy about."
The findings of the survey, which involved 59 groups, show that funding cuts from local authorities are starting to bite.
Recent years have seen dramatic cuts to available funding – with Notts County Council cutting 34 per cent from its funding to the voluntary sector in 2011/12.
The city council has also changed the way it hands out money, allocating it by area instead of dipping into one pot for the whole city.
Dave Liversidge, portfolio holder for commissioning and the voluntary sector at the city, said the new funding arrangements have made it easier and fairer for "admittedly smaller budgets" to be shared out among organisations.
Janet Lewis, chief executive of Base 51, an advice service for teenagers and young people in the city, said: "It's a case of doing our utmost to make the funding go as far as we can."
Do you think more should be done to support the voluntary sector? Email newsdesk@nottinghampostgroup.co.uk