Charities and community groups face a perfect storm of higher demand for services and reduced funding due to the coronavirus pandemic.
A survey by the UNSW Social Policy Research Centre found three-quarters of those working with migrant and multicultural communities, Indigenous people and in the areas of legal and social advocacy reported an increase in demand for services.
At the same time, 31 per cent of organisations had frozen staff recruitment and 21 per cent had reduced staff hours.
This is mainly due to a loss of investment income, lower public and corporate donations, less income from commercial operations and a loss of grants.
One in five service providers said they would need to cut jobs when the JobKeeper wage subsidy support tapers off, according to the study for ACOSS and the COSS Network supported by Community Sector Banking.
"As community sector workers rise to meet increasing demand for services, they are also reporting serious concerns about the financial stress their own organisations are facing," Australian Council of Social Service chief Cassandra Goldie said.
She said JobKeeper had been a lifeline for the community sector, allowing it to keep on staff to help those in need.
"Unless the federal government steps in to provide additional financial support for the community sector, as JobKeeper winds down services will need to cut staff hours, jobs, and services, at a time when there is more need than ever."
The sector also wants a government commitment to renew what is known as the Equal Remuneration Order supplementation, set up in 2012 to ensure fair pay within community sector organisations.
The supplement, worth $554 million in 2020/21, is due to end in June 2021.
The coronavirus pandemic has led to higher than usual unemployment, worsening financial pressure on families, housing stress and a rise in serious mental health issues.
