According to The Exodus Foundation, a drop in consumer confidence particularly within middle to lower-class donors has led to a decline in the amount donated by 16%, a figure worse than during the global financial crisis.
Whilst the number of people donating has remained steady, it is the amount being given which has been most affected.
"When Sydney-siders have concerns about their own budgets, of course they are going to tighten their belts when it comes to giving to charity," CEO and founder of The Exodus Foundation, Rev. Bill Crews said.
"The decline in donations was an inevitable outcome of the budget measures. What frightens me is that in 25 years I've never seen such a sharp decline in the amount people donate."
Rev. Crews also explained that the effects were compounded by an increase in demand for services. In the past year the number of single mothers requiring free meals and food parcels for their families rose by 9%.
"We've been hit with a double whammy: an increase in demand and a reduction in the amount of money people can afford to give."
"These already financially vulnerable women were simply pushed over the edge and charities like The Exodus Foundation have been left to pick up the pieces," he said of the former Labor government policy which saw single mothers shifted onto the NewStart allowance.
The Exodus Foundation provides 1,000 meals to the poor and homeless every day at the famous Loaves & Fishes Free Restaurant in Ashfield and its mobile food van at the Domain. It distributes over 300 food parcels a month and supplies emergency medical and dental treatments to the poor and needy. For more information visit: www.exodusfoundation.org.au