Charities face high demand this Christmas

As the cost of living crisis continues to financially cripple households, charities are struggling to keep up with soaring demand for goods and services during the holiday season.

Desperate families in hardship are turning to non-profits in droves this year for assistance with everything from putting food on the table to keeping a roof over their heads.

Salvation Army Major Bruce Harmer said rising interest rates and inflation meant millions of Australians would sadly go without this Christmas.

"The cost of living is impacting everyone," Maj Harmer said.

"At Christmas time there's a large number of people in the community who aren't sure they can afford to provide gifts for their children this Christmas."

The Salvation Army has seen unprecedented demand for food hampers, meals, Christmas gifts and accommodation nationwide.

The organisation plans to distribute more than 64,000 hampers and vouchers along with hundreds of thousands of Christmas gifts and toys.

Additionally, more than 136,000 meals will be served during the Christmas period through homelessness services and about 68,000 beds will be reserved for those in need.

A recent survey by the charity found more than half of Australians (52 per cent) are more stressed about their finances this year.

It also found about 5.4 million people are worried about how they will afford enough food at Christmas.

Mental health struggles are also on the rise with about 8.6 million people being significantly impacted by loneliness, anxiety, depression or stress ahead of the holidays, according to the survey.

The St Vincent de Paul Society, which helps people experiencing poverty and social inequality, has reported a spike in demand particularly among income support recipients and low-income Australians.

St Vincent de Paul Society NSW acting chief executive Yolanda Saiz said in the first quarter of the financial year there had been a 20 per cent increase in people asking for support compared to the same time a year earlier.

As more Australians tighten their belts in response to rising inflation, some donations have slowed.

The Smith Family received generous donations for its annual Christmas appeal yet the charity has struggled to reach its $5.6 million goal this year.

"We are behind $2 million on our Christmas appeal," chief executive Doug Taylor said.

"There are constraints in giving this year, families are under a lot of pressure."

COVID-19 had also made fundraising challenging in recent years, he added.

Ms Saiz said St Vincent de Paul Society NSW was also well short of its Christmas fundraising goal, having reached just over half of its target by the morning of Christmas eve.

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