The third sector needs to become more sustainable to tackle "history-making" poverty in Gloucestershire.

Business leaders are being called to action to help charities work smarter as they struggle to support the 41,000 children living in poverty in the county.

Gloucestershire Community Foundation (GCF) said areas of deprivation in Cheltenham have now doubled to 20 and demand for help has "skyrocketed".

Talitha Nelson, CEO of GCF, hosted an event last week to share its Strengthening Communities Report 2023 with around 100 guests, ranging from bosses of major corporations to council decision makers and charity heads.

The aim was to start conversations about the importance of charities in the county and the work that is needed to keep them going.

"Charities absolutely protect our statutory services and community," said Talitha.

"They're the golden threads that weave through society and if we don't make sure that this sector is recognized and funded, it will hurt everybody and we will all feel it."

She added:"In 2022 the sector put £23billion into the economy and we are already propping the statutory contracts up by 2.5billion a year. Our charities deliver government contracts but at around a 40% loss.

"If this sector isn't recognized, they'll no longer be able to deliver services and people will end up in worse situations than they're already in.

"We've got to recognize the monetary and commerciality of the sector. It's not just nice to have."

There are around 5,000 charities in Gloucestershire.

According to the GCF report- which surveyed 100 representatives from local community groups- there has been a "dramatic" increase in demand for their services since the cost-of-living crisis started.

However, more than 45% reported an overall decrease in fundraising income as a result of the crisis and 65% reported an increase in revenue costs.

The squeeze has left almost half doubtful about their longer-term sustainability, and a tenth worried they may not survive 2024.

Talitha said the crisis has hit Cheltenham much harder than most people realise.

"There were probably 10 and now we have 20 areas that sit in the bottom 10% of the country in terms of deprivation. It's doubled," she said.

"We've got a beautiful town but with the cost of living crisis it's now become those who have and those who have not."

Last year Punchline reported on the shocking level of child poverty in the town with a third  not receiving the support they need to break the cycle of hardship caused by poor health, underachievement, and unemployment.

Gloucestershire charity bosses surveyed by GCF said their top priority to meet this surging need was funding for regular service delivery. Second was costs to make up for funding shortfalls in previous years and third funding to deliver additional support created by the cost of living crisis.

GCF said it has also been struggling to cope with demand in the face of falling funding.

Established in 1989 to support grassroots projects and communities in Gloucestershire, it has handed out millions of pounds to help those most in need over the last 30 years.

In 2022, it handed out £535,287 but this was only a third of the total value of grant applications it received.

Last year the value of applications was more than double the value of funds available and the most common reason for declining an application was due to "insufficient funds."

"The issue we have is sustainability of the sector as need has skyrocketed like never before.," said Talitha.

"There is absolutely history-making poverty in the county. A third of all children are living in poverty now, 41,000 children. That is absolutely unacceptable in a county like ours.

"So how do we fight it? How do we tackle it?

"People don't really know how to help and what we're doing is suggesting ways to get involved in your community.

"Yes, funding, yes, money but also giving back in other ways. Volunteering is crucial, helping at your local charities and community groups."

Over the last three years its Invest program has mentored and supported 33 charity leaders and it has raised more than £100,000 through its Cost of Living Crisis Appeal and distributed 70 grants to organisations fighting poverty, supporting around 30,000 people.

With the "unprecedented" level of poverty not declining, it also launched a three-year campaign, Poverty Hurts but said it will not succeed without the support of the community.

Taitha said: "Our current research, which forms the basis of this report, was to help uncover and understand the extent of all the issues charities and community groups are now facing.

"We wanted to learn about the changing needs of our communities and not only where GCF should focus support, but to publicly shine a light and give a voice to what our charities see as the greatest needs and what they are asking for.

"Want to inspire a cross sector response and encourage collaborations to tackle some of the issues raised in this report.

"Gloucestershire needs to pull together, as we can't fight these issues alone."

This week GCF celebrated a win when it was awarded an A in the national Foundation Practice Rating - one of only 21 organisations to have gained the top mark in the last three years.

Talitha wrote on LinkedIn: "We were so proud to represent small organisations, demonstrating you don't have to be large in anyway, money or people to achieve the highest results.

"At GCF, size has not held us back, our vision is clear, action is what we are about and we like to innovate as well as consistently delivering world class service to our donors and charities."

Talitha Nelson also featured on this week's Business Breakfast Briefers show:

E149 Punchline Talks! with Huw Lewis, Dr Matthew Andrews, Talitha Nelson and Serena Gay