Launching on Wednesday, the annual Wishing Tree Appeal has failed in recent years to fill the charity's coffers enough to keep up with the growing demand.

Salvos Lieutenant Kara Hartley believes the downturn in donations is a result of the rising cost of living bringing regular donors to financial peril themselves.

"Last year was our biggest decline [in donations]," Lieutenant Hartley said.

"When you look at it, a lot of people are struggling as everything goes up - rent, food - it's a struggle."

In particular, last year the charity struggled to meet the demands for toys in the older 10-15 year old age bracket.

"We normally do get quite a lot of toddler and younger kids' toys but it's that older group [that misses out]," Lieutenant Hartley said.

"Gift cards are also accepted for that age."

As a result, the charity has devised much stricter rules for eligibility especially when it comes to children's gifts.

"We've had to be more strategic in our giving which is a real struggle," said Lieutenant Kara Hartley.

"Of course everyone who comes to us is in crisis, but it depends on the definition of a 'genuine crisis'.

"Some are in crisis because of addiction, others might be on a pension where from week-to-week they just can't catch up enough to save.

"Once they've paid for rent, food, schooling, there's just not enough left to save."

Each year, in the Christmas week, the charity team will see up to 200 families.

Those in need are required to first fill out a form detailing the eligibility criteria.

Their appeal is then assessed by the Salvos team on Wednesday before they can then be handed the supplies they are deemed to need.

"It's based on things like the care of children. If they have 100 per cent care of their children then they are our priority," Lieutenant Hartley said.

"If they only have 50 per cent care [of their children], we can only afford to give them half of the toys, while the other parent will get the other half.

"If they don't have children in their care at all, they can afford more because they're not feeding a family regularly, they are more able to save and so they will only receive a food hamper."

This year for the first time, they will have to turn away some who have consistently relied on the gift donations.

"We've had to say no to grandparents this year, it's the first time we've had to do that," Lieutenant Hartley said.

"We have to be honest with people, we don't have storehouses full of toys, what we get is only what's come through the Wishing Tree. It's so hard, we want to help everyone."