Almost two out of five senior investment executives at UK charities expect their organisation to cut jobs in the next year, new research indicates.

The investment management firm the Rathbones Group commissioned the market research company Pureprofile to interview senior people at more than 100 charities holding more than £4bn in investments in May.

Researchers found that nearly half of the executives surveyed said they expect to sell assets such as properties in the year ahead, with 36 per cent saying they expected to have to cut services. 

All executives surveyed said they expected to see an increase in staff quitting voluntarily over the next two years, the research showed. 

It also found that 78 per cent of those polled said they were considering leaving the sector themselves, which is up from 36 per cent in the same survey last year.

Almost two-thirds of respondents said the financial health of their organisation had deteriorated since the cost-of-living crisis started, with 13 per cent saying it had deteriorated dramatically.

“Almost eight in 10 (77 per cent) senior executives questioned said annual income has fallen during the cost-of-living crisis with 67 per cent saying it has fallen by a fifth or more,” Rathbones said in a statement.

About 83 per cent of respondents said demand for charity services was continuing to rise because they were being asked to do more, while 17 per cent said demand had stayed the same.

Charity executives cite problems with income as forcing “drastic action”, with about 51 per cent of respondents saying they sold assets such as property to generate extra income while half (49 per cent) have cut back on services and 29 per cent have reduced headcount across their organisation.

Executives said they expect more staff to leave the sector, with 64 per cent of respondents forecasting an increase in voluntary departures and 34 per cent predicting a dramatic increase.

Andy Pitt, head of charities at Rathbones, said: “This financial pressure is turning the spotlight on financial strength and it is clear that many charities will need to make tough decisions in the future.

“However, the sector has always been resilient and will adapt as it always has done.”