The Wollongong Salvation Army hopes to play Santa to 400 families in the Illawarra with its 2014 Christmas Appeal.
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Salvation Army Illawarra spokeswoman Karen Walker anticipates a larger need in the community for donations this year, particularly among families.
"People seem to be struggling for cash this year due to the rising cost of living," she said.
"They're not able to afford extras like toys."
A Salvation Army survey showed 55 per cent of respondents were unable to afford gifts at least once a year.
Christmas is the peak period for the Salvo Care line while last January there was an 18 per cent increase in calls requesting help.
"A lot more people feel the pain and pressure of loneliness, stress, financial difficulty, relationship breakdown or family conflict during this period than at any other time of the year," Ms Walker said.
She said the Illawarra could always be counted on to support less fortunate families.
"The community here is very generous with their toy donations even though they might not have much to spare themselves," she said.
Toys are collected from Figtree and Shellharbour Kmart Wishing Trees, and donations can be made online or by phone at 13SALVOS.