Donations to charity Oxfam are down 12% this year, 2009.

With more than 80% of Oxfam’s total income arising from donations to its 714 shops, a drop of 12% in contributions could equal 1.2 million fewer donations in 2009 – the charity’s first loss in eight years.

Adversely, demand for donated goods remains high with customer numbers the same level as in 2008.

Furniture donations have dropped the most by 13%, while household items such as crockery and china have fallen 7% – both attributed to fewer people moving house. Clothing donations would have decreased by 8% had it not been for the charity’s link-up with Marks and Spencer (M&S) in their Clothes Exchange scheme, which means that those donating an M&S item of clothing to Oxfam receive a £5 M&S voucher.

David McCullough, Oxfam’s Director of Trading, commented on the drop in donations: “The £20 million profit made by our shops last year would be enough to fund all of Oxfam’s work in DR Congo, Tanzania, Uganda, Ethiopia and Somalia for a year. But we can’t sell fresh air, and they of course rely on the generosity of the public for their stock.

“The effects of the credit crunch are being felt all over the world – whether it’s on the high street in the UK or rising food prices across Africa, few are left untouched. To continue helping as many people as we can, we desperately need to continue transforming donations of unwanted clothes, books and homewares into lifesaving funds for our work.”

According to Oxfam, it is “faring better than others” in the charity sector, and plans to open more stores over the coming year in an effort to boost both sales and donations.

The current economic climate appears to be ailing the charity when it needs donations more than ever. Oxfam has recently urged the World Bank to increase foreign aid to poor countries after it was revealed how much money had been given to banks to help them survive the credit crisis.