Areas selected for the fund include parts of Nottingham, Leicestershire, Durham, Sunderland, Leeds, Rotherham, Liverpool, Portsmouth and Swindon.

In shelving the plans, the government has acknowledged ‘significant concerns’ from the sector around making volunteering part of the settlement system.

The funding concerns coincide with an increasingly “hostile environment facing LGBT+ communities”, leaving staff worried about their safety and at risk of burnout.

The leaders of four major charity umbrella bodies are calling for the launch of an independent commission into the future of the sector’s infrastructure, which has been impacted in recent years by financial pressures.

Charity regulators in several countries, including across the UK, have pledged to work together to look at the opportunities and challenges of digital transformation and increased use of artificial intelligence.

Charities are being urged to ensure they have clear policies and training in place to ensure their fundraisers do not unfairly target vulnerable donors.

A snapshot survey of 272 fundraisers across the world has found that one in six are looking to leave the profession within the next two years.