More than half of charities say they have been affected by the financial downturn, according to a survey by the sector watchdog.

The Charity Commission, which gauged the impact of the credit crunch in a poll of 1,000 organisations carried out in February and published on Tuesday , said 52 per cent reported tougher times compared with 38 per cent only five months earlier. About three in 10 charities surveyed are suffering a drop in income as a result of the recession.