Concern is growing for some charities in Kent struggling to stay afloat during the credit crunch.

As the effect of people watching the pennies takes hold and companies look for ways to make cutbacks donations to charities are being put under threat.

Kent Air Ambulance Trust relies solely on donations and receives no government funding.

Despite being one of Kent’s most recognised charities it has already begun to feel the pinch.

Chief Executive David Phillpott said: “We are noticing some trends which give us cause for concern. Some are having an immediate impact and some are long term.

“The immediate impact is we have seen a higher than unusual number of people cancelling their direct debits in support of our lottery. We have 14,000 people who pay £1 a week to be in our lottery which raises about £500,000 a year for the charity.

“Of greater concern is that some of the groups who organise fundraising on our behalf may have to revise their plans.

“I suspect some of these groups are discussing how viable it is to do fundraising in the next 12 months. The question is: are people in a position to give?”

One way charities are dealing with the economic downturn is by combining resources.

The Ellenor Lions Hospice in north west Kent used to be the Ellenor Foundation covering Dartford, Swanley and Bexley and the Lions Hospice in Northfleet.

Fundraising Director Steve Hudd said: “We have combined resources so we can provide efficiently excellent quality care to adults and children with life limiting conditions.

“The rationalisation that we have gone through may be something that some charities may need to consider to continue to run effectively.”

Despite the crunch charities related to the armed forces have seen donations increase dramatically in recent years.

Head of Campaigns for the Royal British Legion, Robert Lee, said: “It is hard to say we are suffering no impact, but a heightened awareness of the work of the armed forces is buffering us from the main impact of the credit crunch.

“We are expecting our best poppy appeal ever as people are concerned about the welfare of our British forces serving in Iraq and Afghanistan and for their families.”

Many charities will call upon money they have put aside in reserves to deal with a fall in income for whatever reason.

Chief Executive of Kent Air Ambulance Trust David Philpott believes their policy of putting money away for a rainy day has been vindicated by the credit crunch.

“Over the last five years we have been very prudent in putting money aside in safe investments for such a time as this.

“As chairman of the Association of Air Ambulance Charities I know a lot about the 18 independent air ambulance charities in the UK to be frank there are some charities which only have 2 or 3 months reserves in the bank and they could run into difficulties.

“Tragically I think there will be some very good causes unable to weather the storm.”