A 10m deficit in the Liberal Democrat/Conservative council's budget means that around 2m is set to be cut from across the voluntary sector in April.
Kevan Liles, of Voluntary Action Leicester, which has set up a campaign to fight the proposals, said: "Although the proposals state a reduction of 2m for this financial year, the total cut over three years will be 10m."
The cuts are being proposed by four directorates, including education and lifelong learning. Across the voluntary sector, 88 groups face closure, but some groups have been given a five-month extension.
John Preston, director of the Leicester Council for Voluntary Youth Service, said: "For some groups, the council will look at commissioning their services instead of giving a grant."
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