For the first time in its 25-year history, the community-administered program will not receive an emergency relief grant from the Department of Social Services.
Chair of the City of Melville's Citizens Relief Fund, Councillor Clive Robartson, said despite what some people think, the program was not run by the City and would now have to find new funding sources if it was to continue.
The fund provides financial support for people and families who were often living below the poverty line.
Get in front of tomorrow's news for FREE
Journalism for the curious Australian across politics, business, culture and opinion.
READ NOW"Most of the calls we get are from Willagee, which is a low socio-economic area," councillor Robartson said.
"Many of the people who need assistance include unemployed people, single mothers and others who get themselves into financial trouble because there is not enough to meet day-to-day needs."
Last year, the fund helped 280 families across the City, with assistance totalling $33,659, which included a large number of food hampers distributed during the year and at Christmas.
Cr Robartson said the funding cut for the program came off the back of the news last week that the State Government was applying budget cuts to financial counsellors.
"That is a concern and we need to address that," Cr Robartson said.
"It does not affect the City of Melville's financial counsellor but a number of other agencies who we use have had their funding for financial counselling services cut.
Stockland Bull Creek donated a $1000 community grant last week in a bid to encourage other organisations to chip in and keep the program alive.
Donations of non-perishable goods are also welcome and can be placed in the Citizens Relief Fund cardboard bins located at major shopping centres.
If you would like to help the Citizens Relief Fund with financial assistance, contact Clive Robartson on 0419 048 556.