Charities ability to carry out vital work is being undermined by a huge fall in the level of donations. More than half of them have been affected by the economic downturn according to data published by the Charity Commission, with a third putting in measures such as dipping into reserves, reducing staff and increasing fund raising.

Oxfam, which derives 80% of its income from its 714-strong network of shops, has announced a 12% fall in the number of donations being received – the first drop in eight years.

The impact of the financial downturn on charities has widened and deepened, with many facing the double whammy of falling income and increasing demand for services. It is difficult for a charity to commit funding for advertising to increase donations, when they could use the money for donations themselves.

Oxfam aims to increase funding by launching an online shopping service, featuring second hand clothes, second hand books and charity gifts. This comes after Oxfam announced that they are committing more efforts to help those effected by climate change and the disasters caused by our increasingly warming climate.