Most charities in England and Wales are cutting back on staff and services and one in 10 say they could shut down within a year, the BBC reports, citing a new study by nonprofit think tank New Philanthropy Capital.

The survey of more than 100 organizations found that more than half had laid off workers and two-thirds have reduced front-line services as the British government slashes grants to nonprofit groups. Almost half of the polled providers said they are now collaborating with other charities.

“As the state pulls back we are seeing a real shift in the way public services are commissioned and delivered,” said New Philanthropy Capital CEO Dan Corry. He said it is “vitally important” to get a grip on the changes and “act now to ensure that their impact on the voluntary sector and the people they help is positive, not detrimental.”

The government said it will make some $940-million available to help charities navigate short-term problems arising from the budget cuts.