LONDON (AlertNet) - Half of Russian charities have lost 25 percent of their income as a result of the global economic crisis, according to a study on the organisations vital for helping the vulnerable in Russia's fractured post-Soviet society.

Thousands of small-scale charities work in Russia, often run by middle-aged women on tight budgets, and fill a void left by the state in a society noted for its alcohol consumption, tired welfare system and broken families.

Their funding is based mainly on donations from corporations and federal and municipal authorities. The report, led by the Charities Aid Foundation (CAF) in Russia, said government cash would now play a bigger role.

About 52 percent of the 440 charities in the survey - which also included replies from 47 donors - said their funding had dropped by a quarter in the global economic crisis that escalated last year.

"These groups are especially important for the vulnerable in society ... for example, single-parent families, homeless people, people just out of prison and immigrants ," said CAF's director in Russia, Maria Chertok.

CAF monitors and helps charities around the world.

After the 1991 collapse of the Soviet Union, many Russians lost their life savings in successive financial crises, industries went bankrupt, infrastructure crumbled and jobs disappeared.

In the last decade, cash mainly from energy resources and metals has boosted Russia's wealth but the growth stalled last year and many social problems remain ingrained.

This year Russian President Dmitry Medvedev told Russians they should drink less alcohol, the government has created financial incentives for families with children to stem a population decline and police have tried to counter the growth of racist attacks.

"The worse a situation is the more non-profit organisations are needed," Cherkot said.

The report said that although the charities had noticed a reduction in their income, they also said that demand for their services had increased by about 59 percent - and that they would try and boost their activities to match demand.

"Although non-profit organisations have been severely affected, they are still active and robust and trying to expand," Cherkot said.

The small size of Russian charities and their relatively simple structure make it easier for them to adapt to the difficult conditions created by the economic crisis compared to large Western charities and aid organisations, the report said.

The full report can be read here.

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