Sarah Nicholson said "critical" multi-year funding from Create NSW has been cut for the South Coast Writers Centre (SCWC), putting more than 180 events in "jeopardy".

Dr Nicholson said if they were told their $80,000 a year grant would be discontinued in May (when the announcements were scheduled) instead of recently, they wouldn't be in a "precarious financial position".

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"We've been left in the lurch," Dr Nicholson said.

"Many of the regions along the NSW South Coast that our centre provides writing services for were already reeling from the traumatic effects of the 2020 bushfires ... before the current pandemic conditions came into force.

"There is strong evidence that the arts is integrally important to community recovery; they have positive impacts on our health and mental wellbeing, enhance social cohesion and build community strength."

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The not-for-profit organisation has been operating since 1997 and runs events like short courses, children's writing workshops, book launches and an annual writers' fair.

They have been receiving $80,000 a year under the Independent Arts & Cultural Organisations Multi-Year Funding scheme, which expires in December 2020.

Dr Nicholson claimed the SCWC was not the only writers' group affected, with the state's literature body Writing NSW and other groups also having funding cut.

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A spokeswoman for Create NSW said they had not withdrawn all financial support to writers centres across the state, while noting the SCWC could apply for future grants.

"The Artform Advisory Boards set up by the NSW Government to assess funding applications against published criteria ... [and to] determine the ranking of recommended applications and those organisations prioritised for funding," she said.

"The Literature Board did not recommend the SCWC for Multi-Year funding."

Writers' organisations to receive funding in the 2020/2021 Independent Arts and Cultural Organisations Multi-Year round, include agreements for WestWords, Sydney Review of Books, Red Room Company and the Varuna Writers' House. Byron Writers Festival will be moving to a negotiated funding arrangement.

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