More that 100 charities have reported encountering "systemic funding issues", according to a recent survey.
The survey, which was conducted online, looked at more than 100 charities by the national association, The Wheel, and reported that one in four charities (24%) are growing uncertain if they can sustain existing services this year.
Such services include essential public services on behalf of the State and contribute approximately €32 billion to the Irish economy annually, according to the umbrella body. It was also reported that these charities are responsible for employing more than 281,000 people in Ireland.
Despite this, staffing remains one of the biggest challenges for these charities, with 38% of organisations unable to employ or retain staff, mainly due to an uncompetitive pay.
While some organisations have received extra funding under Workplace Relations Commission agreements to raise salaries, these agreements do not cover roughly 46% of those who responded to the survey as they were not funded under Section 39/56/10/40 arrangements.
27% have said they receive multi-annual funding which has left many charities who are reliant on short term arrangements that "undermine long-term planning". The association has also said that administrative pressures also increased.
It was also discovered that 72% of organisations had reported an increase in compliance and reporting requirements over the last year. The same data is required to be submitted to several bodies in the State, including the Companies Registration Office, the Charities Regulator, and the HSE.
33% of organisations have said that they have lacked the capacity or funding to meet these requirements.
Multi annual funding was named as the main policy for the sector, alongside non pay costs to be covered by State funding, or funding to provide the costs of compliance/the streamlining of regulatory and funding related compliance requirements.
Speaking about this, Director of Police and Advocacy, Dónall Geoghegan has said that the sector has been "stretched to its limits".
He added: "Without meaningful reform to how the sector is funded and supported, we risk undermining the very organisations that communities across Ireland rely on every day".
These findings also comes as staff and volunteers of over 400 charities, community groups and social enterprises are to gather at The Helix in Dublin today as part of the largest gathering of civil bodies, The Wheel's Annual Summit.
