The state government funding for social service agencies is indexed, meaning it's supposed to go up each year in line with the cost of delivering services. Costs are going up more than four per cent this year but state government funding for 2021/22 is only increasing two per cent.

Last week, Centre for Non Violence joined the Victorian campaign urging the state government for more funding to continue operations.

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Bendigo Community Health Services chief executive Gerard José said government funding must allow organisations to continue delivering quality care to the community.

"The pressures on not-for-profit organisations like BCHS are enormous at the moment," he said.

"We cannot accept any funding system that puts services and jobs in danger when it comes to health care and ensuring the health and wellbeing of our community.

"We have just completed our budget process for the next financial year.

"Our staff have already gone above and beyond through this pandemic. Their resilience and determination to keep the community healthy and safe has been truly amazing and this type of dedication should be supported not put in danger by essentially a funding cut.

"We cannot continue to put that type of pressure on our teams without at some point running the risk of damaging the standard of care the community expects and deserves."

The Victorian Council of Social Service launched a Thanks Isn't Enough campaign and chief executive Emma King said it highlights that the present funding does not cover the cost of service delivery putting organisations and jobs at risk.

"In real terms, that's a (funding) cut. This is an absolute body blow to those organisations which supported Victorians through the worst of COVID," she said.

Ms King said costs had increased dramatically over the past year because of factors outside the control of service organisations such as a recent increase to the minimum wage (up 2.5 per cent), new superannuation contribution requirements (increasing charities' wages bills by 0.5 per cent) and new Portable Long Service Leave obligations.

Mr José joined commendations for the government on establishing a new Working Group to review the funding indexation process but warned this would not help the funding crisis faced by social service organisations this year.

"BCHS has spent 47 years caring for the community. We make a real difference around health and wellbeing which we know then has a positive financial impact in that the burden on the hospital system is reduced.

"All we ask is that Government acknowledge this by funding the social services sector fairly so we can all get on with helping people to live the best lives possible in the communities we serve. How can anyone argue that isn't a good investment?"

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