Charities are urging Australians to embrace the Christmas spirit of giving and dig deep as cost-of-living pressures result in a drop in donations but also greater need for support.

St Vincent de Paul Victoria spent $2.6 million on its homelessness support in FY2022-23 compared with $1.6 million the year before, marking a 62.5 per cent increase, after inflation jumped to a near 33-year high 7.8 per cent in 2022.