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Alternatives to government funding sought to fill hole in charity finances

The dual challenges of rising demand for services and reduced state financial support are creating a perfect storm that could sink all but the largest children's charities over the coming year, warn voluntary sector leaders.

Christmas is the season of giving, and at this time of year many charities try and tap into this goodwill by raising their public profile in an attempt to encourage extra donations.

But making themselves more visible in a bid to boost fundraising could become a year-round necessity for many charities if they continue to feel the brunt of government funding cuts.

When Children England, a membership organisation for the children, young people and families voluntary sector, asked its members to identify their biggest challenges, 72 per cent selected reduced statutory funding.

This came second only to a rising demand in services (75 per cent), which, along with funding cuts, presents a "perfect storm", according to Nick Davies, policy manager at Children England.

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