The National Heritage Memorial Fund, which was responsible for saving dozens of British treasures over 20 years, will have to close if the government decides to cut its funding.

The body, which rescued Canova's Three Graces sculpture in 1995, is charged with saving rare art works and other items of "outstanding importance" to the UK's heritage.

It fears it may be targeted for cuts when Chancellor Gordon Brown releases the results of his comprehensive spending review.

If our funding is cut more than it has been it will effectively close us down

NHMF spokesman

Government aid to the organisation has already dropped to £5m a year from a high of £12m.

"If our funding is cut more than it has been it will effectively close us down," a fund spokesman told BBC News Online.

Last month its coffers were drained by a £17.4m grant to save Tyntesfield House, a Victorian mansion near Bristol.

The expenditure forced the fund to dip into its reserves, leaving it unable to offer any new grants until at least April.

"If another Tyntesfield came up, we wouldn't be able to save it," the spokesman said.

War memorial

The fund helped save the Alice photos

The National Heritage Memorial Fund was set up in 1980 as a memorial to those who died in World War II.

Its donations have helped save the Sherborne Missal manuscript, the Three Graces statue by Canova and a 12th century casket depicting the killing of Thomas a Becket.

Six weeks ago the fund intervened to save rare photographs of Lewis Carroll's muse Alice Liddell.

One fear is that it may be merged with the wealthier Heritage Lottery Fund, which the memorial fund's trustees also administer.

But a spokesman said the NHMF's immediate concern is funding.

"We are awaiting the results of the comprehensive spending review," the NHMF spokesman said. "We simply don't know how much money we're going to have."