UK charities are bearing the brunt of the economic downturn as donations to charities are the first expenses to be cut.

This has meant that UK charities are struggling to keep services going and cuts cuts are inevitable, as the NSPCC have just announced 150 job losses.

Furthermore they are planning to close two services in Derbyshire and Norfolk for abused children and dysfunctional families due to the lack of funding.The NSPCC has lost £2 million from reduced legacy payments, which has led to these service cuts.

A survey of over 500 charities by Charity Commission has indicated that 25 percent of charities had seen donations drop in the past year, although Barnardo's has weathered the storm well.

Oxfam have admitted that the charity is finding it increasingly finding it difficult to recruit new donators, although the economic downturn has meant that more people are visiting charity shops.

Cancer Research, the UK's has plans to cut up to £625million from their £2billion  research budget over the next five years.

The impact on charities is the need to be cautious about launching new services or investing so as not to overstretch.

Some charities are also facing a tough time because they have money that is embroiled in the Icelandic banking system.