A GOVERNMENT agency has withdrawn funding for an Australian lay Catholic organisation that recruits and supports volunteers for developing countries.
AusAID has dealt a blow to PALMS Australia by ending funding of $250,000 a year.
But the Catholic agency’s solidarity with other Church organisations and the generosity of donors is giving it hope.
The agency’s executive director, Roger O’Halloran, said PALMS became aware of AusAID’s decision to withdraw funding early this year but, after a planning meeting in Sydney this month with members, donors and supporters, the outlook was much brighter.
PALMS has launched an appeal to help sustain its programs and volunteers in the field in the short term until alternative funding strategies are established.
Mr O’Halloran said PALMS for many years had relied on AusAID for 60 per cent of its funding but alternatives were already emerging.
AusAID’s funding decision has come after PALMS, as far back as 2000-01, had sought to have its funding brought into line with other more business based volunteer agencies that were receiving higher rates per volunteer.
AusAID then reviewed PALMS’ funding which ultimately led to funding being withdrawn.
An AusAID spokeswoman denied a review of PALMS funding had occurred but said that a tendering process was underway.
She said funding had not been withdrawn and PALMS would still receive $250,000 for 2004-05.