"Families are really, really struggling," says the chief executive of Parks Community Network in western Sydney.
"We have a lot of people seeking no-interest loans for things like car registration and repairs, but they simply do not have the $30 a fortnight needed for repayments, so we unfortunately can't give them a loan," she said.
Research from national charity Good360 Australia shows 82 per cent of charities say demand has never been higher and 69 per cent don't have enough donated items to meet the needs of clients.
"That whole notion of the working poor, it's a real thing in this community - people are not able to pay their mortgages," Ms Vergara said.
Good360 managing director Alison Covington said its survey of more than 400 charities and disadvantaged schools showed the cost-of-living crisis was becoming a permanent, structural challenge "that requires smart and sustainable long-term solutions".
"Families going without basic hygiene products, children without essential school supplies, and elderly Australians facing hardship for the first time," she said.
"This is not the Australia we should accept in 2025."
Parks Community Network is a not-for-profit that relies mainly on government funding, but Ms Vergara says they are not funding organisations adequately to meet the demand or services.
She highlighted the irony of gaming profits being used to support people who needed help because of problem gambling.
"We've got 10 projects funded through ClubGrants, but we lose $1.8 million each day to gambling, and it's because of the problem gambling in this area that those funds are generated," she said.
Ms Covington said the latest research showed an estimated $4.5 billion worth of unsold household items each year that could potentially be donated to charity.
Good360 data shows $60.5 million worth of donated new items were delivered last year, but donations were not keeping pace with demand.
"We have rising community need on one side and rising waste on the other," she said.
"We cannot allow billions of dollars of unsold items to be wasted. These are perfectly useable goods that can be connected to people who need them most."
In Sydney on Tuesday, Good360 is launching its first Community Hub store at Smithfield, where people in need can access free essential goods in a dignified, retail-like environment.
"We are creating spaces where charities, donors and communities can come together to reduce need and waste," Ms Covington said.
The model will expand nationwide, with plans for at least one community hub in every state and territory.
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