Some are struggling to stay afloat, many are hit with new costs to take their services online and almost 40 per cent reporting their donations were drying up and sponsors were pulling out.

The Canberra Recovery Appeal was launched on Wednesday by Hands Across Canberra, which represents a network of 250 local charities and community organisations, most of whom are struggling like never before.

The recovery appeal aims to raise $400,000, with all money going to local charities, Canberrans urge to "give where you live", with those in need in the national capital also having to also cope with the reality of sub-zero temperatures during winter.

Hands Across Canberra, via funding from Aspen Medical and the Chief Minister's Charitable Fund, will match every dollar donated up to $200,000, meaning a total of at least $400,000 is the goal.

Thirty-five charities have signed up to help with the fundraising, but any of the more than 250 charities could receive funding, Hands Across Canberra chief executive officer Peter Gordon said.

Mr Gordon said the lingering impact of the drought, bushfires and now COVID-19 had created a perfect storm for charities, saying one challenge was bad enough, but multiple issues were disastrous.

"Since Christmas our communities have been in crisis," Mr Gordon said.

"There are not many regions of the world that experience drought, bushfires, a mega-hailstorm, a global health pandemic and an economic crisis in such a short timeframe. The community sector has been stoic throughout but collectively we must do better to support them further so that they don't reach breaking point."

New research commissioned by Hands Across Canberra has that revealed that 97 per cent of Canberra's charities have been affected by the COVID-19 crisis, while 83 per cent have been significantly affected.

Almost 40 per cent had reported that "donations had considerably dried up and existing sponsors were pulling out". Only three per cent said COVID-19 will not affect its operations. A third were affected by last summer's bushfires and smoke-related shutdowns.

The research examined grant applications and found many Canberra charities were facing increased costs to move their services online to adhere to social distancing restrictions imposed by COVID-19.

Digital costs for the review period were reported as being almost twice as much as other bills and salaries.

"Never before have community organisations reviewed and changed their delivery arrangements and technology is key," Mr Gordon said.

"But technology is expensive and while organisations have struggled just to keep the doors open they are forced to spend money on new delivery arrangements."

At the same time, volunteers were being asked to stay away and not donate their time. And donations had dried up.

"It's clear that community organisations may have been able to repair the damage caused by the bushfires," the research found.

"Yet COVID-19 has given them no time to do so, pushing otherwise well-performing organisations into disarray."

Mr Gordon said Canberra had a veneer of prosperity, with the country's highest median income. But beneath that statistic, many people were doing it tough.

"Generally, even Canberrans themselves think that all of Canberra is fine, with good jobs, good housing and access to services," he said.

"Sadly, that is not the case for everybody.

"Per capita, Canberra has as many homeless people as Sydney. We suffer disability and disadvantage as any city of our size might. Precarious employment was very evident even before the COVID crisis.

"The view that Canberra is okay is evidenced by our donation history. Canberrans are the most generous donors to charity in Australia but most of that generosity goes out of the Territory and also out of the country. It is time to give where we live."