UK charities fear they have lost up to £120 million of funds invested in failed Icelandic banks.
The National Council for Voluntary Organisations (NCVO) says that so far 60 of its 6,500 members have said their funds may be at risk.
Others, who provide services for councils, fear they will not be paid if town halls lose money in the crisis.
The NCVO is seeking urgent talks with Chancellor Alistair Darling to urge him to protect the charities' money.
Most of the charities which have investments in Iceland govt. takes over largest bank group ...
Banks' share prices fall sharply ...
EU Summit Looks at Ways to Improve Lives of Roma ...
No social equality in Czech Republic - poll ... troubled Icelandic banks have not yet been named, but they are thought to include major organisations.
'Increasingly worried'
Those known to be affected include Naomi House children's hospice in Sutton Scotney, near Winchester, which has £5.7 million of deposits invested with Kaupthing Singer & Friedlander (KSF).
The Physiological Society in London has £523,000 invested with the same bank, and Samaritans has links to KSF because it is the parent company of Investment Managers, which looks after the charity's investment portfolio.
NCVO chief executive Stuart Etherington said: "We have been speaking to our members and they are increasingly worried about the current financial climate.
"We are seeking a meeting with Alistair Darling to seek assurances that charities' money is protected."
Graham McGeown of the Physiological Society said: "This is a difficult time for our organisation. We have £523k tied up in KSF and are not entirely sure if we will get this money back.
"With NCVO we are calling on the government to help protect our money as well as other organisations who may also be involved in the banking crisis."
Funds protection
Under the Financial Services Compensation Scheme, charities classified as small businesses are covered for the first £50,000 of any investments.
But it is not clear whether they would benefit from the wider guarantee given to individual savers by the chancellor that they would recover all of their money.
The NCVO's head of campaigns and communications, Louis High, said many of its members were also concerned about local authorities' ability to pay for services.
He said: "For many smaller organisations that rely on this money and have tight financial constraints, non-payment for their work could be disastrous or even spell their death knell."
The organisation has called a sector-wide summit to examine the potential impact of a recession and what can be done to protect charities from financial disaster.
(BBC)
<< Back