Kids climbing a tree

Recessionary Effects Hit the Community Sector

2009 will be a year to remember for the community and voluntary sector as the effects of the economic downturn start to bite.

Kate Frykberg, Executive Director of the Todd Foundation, says feedback from the sector shows many non-profit organisations have had to tighten their belts, taking pay cuts in some instances, to enable them to continue to serve the people in their community.

It’s been a hard year for many community-based organisations," she said.
"Feedback received when visiting applicants made it clear that the environment has changed and many organisations are struggling to get through the year."

She said that in some instances organisations have taken a 10% pay cut in order to keep services, such as counselling going.

"Being sustainable is always difficult for the non-profit sector who relying on philanthropic and government funds and donations  to keep them going,"  she said.

"Organisations that seek funding from us tell us that a lot is riding on their application. In some cases, the demand for services had trebled - but not the funding to meet it."

Marti Eller, General Manager, Operations, at Family and Community Services, said these are the type of organisations that should apply for funding under the Community Response Fund.

"Government set up this Fund to help critical social service organisation get through the economic downturn," she said.

"Two rounds of the Fund have already been completed with nearly 600 organisations applying for funding. Applications for the third round of Funding are now being received. "

Ms Eller said that information and applications to the Community Response Fund can be found on the Family Services website.