THE Hunter Volunteer Centre will not close as planned on February 15, after the federal government threw it a potential lifeline in funding.
Chief executive Tony Ross said he was speaking with the board at its belated Christmas event on Sunday about how to save the centre when he received the "excellent" news.
He said it was a "wonderful outcome" and "shot in the arm" that meant it wouldn't need to close its doors this week.
"It gives us more food for thought and a bit more optimism about what the future may hold," he said.
Minister for Social Services Amanda Rishworth will address the National Volunteering Conference on Monday, where she will launch a 10 year national strategy and announce $4 million for volunteer management centres (VMC) to help recruit and train staff.
A total of 37 centres - including the Hunter Volunteer Centre - will be able to apply for a grant. If successful they will receive $100,000 over two years, $50,000 in this financial year and $50,000 in the next.
Mr Ross said the last federal government changed the funding model for the sector in mid 2021.
He said instead of directly funding each VMC an average of about $100,000, to a total of about $6 million a year, it now allocates funding to each state's peak body to distribute based on expressions of interest.
He said each centre received their usual level of funding last financial year, which was dubbed "transition funding". He said the Hunter Volunteer Centre received $200,000, based on its "geography, population and performance".
He said the federal government would give $1.9 million this financial year to the Centre for Volunteering in Sydney, which had allocated $400,000 to three Sydney agencies. He said the funding was to be used for online resources for volunteer coordinators.
Ms Rishworth said the $4 million would give VRCs "time and support to adapt as we work through the new model", which she said "focuses on supporting volunteering involving organisations to effectively recruit, train, support, and retain volunteers, and to break down barriers to volunteering".
Mr Ross is looking forward to more detail: "I can't stretch $50,000 into $200,000."