NATIONAL figures tell us that small charities are struggling in the credit crunch, with 52 per cent saying in March that the recession had caused them problems.

One in three charities told the Charity Commission they had taken steps to try to combat the impact of the downturn, with 14 per cent reducing their costs, 11 per cent increasing fundraising and 6 per cent drawing on their reserves.

So far in Warrington charities seem to have escaped drastic measures like closure, but are still paying the price.

Nikki Cotter, of Warrington’s Mencap, said: “We were hoping to have a fundraising ball this summer which we have decided not to have because we don't think we will sell the tickets.

“For something like that to be a success you need people there who have got the money to bid on things and so on.”

The Warrington Guardian’s recent campaign to raise £50,000 for Bobby Brown’s eye operation seems to demonstrate that people have no reservations in donating, and the charities we spoke to say the same: they haven’t seen donations dry up.

The recession is hitting them more slyly than that.

“The interest on our bank accounts has reduced quite a lot which has made a big difference each month,” said Mencap’s Nikki Cotter.

“Bills and food have increased in our houses. It's more expensive for the adults to be doing their shopping and paying their bills and they don't really understand why they've got less to spend on social activities,” she added.

With the collapse of powerful banks abroad and the nationalisations of Northern Rock and HBOS there have been additional concerns over just where to keep a charity’s cash.

Nobody wants to be in a situation like The Christie Hospital, which has more than £6m frozen in Icelandic banks.

A beacon of hope came in April when the Warrington Council for Voluntary Service announced a £210,000 grant fund to help charities affected by the recession.

Several local charities, such as the Citizen's Advice Bureau, Warrington YMCA and Home-Start have already reported seeing an increase in demand for their services which they are unable to meet due to lack of capacity or resources.

The money available will go to charities that deal specifically with recession-related issues, including debt advice services and mental health charities.

It has come from The Real Help for Communities: Targeted Support Fund which is a £15m programme by the Office of the Third Sector.