Neighbourhood Houses Victoria has launched a campaign calling for the state government to increase annual funding by $11.7 million, or risk the closure of 200 neighbourhood houses across Victoria.

Wangaratta's two neighbourhood houses have backed the 'Keep Our Doors Open' campaign, which was officially launched in Melbourne on Tuesday, and say the need for funding is being keenly felt locally.

Pangerang Community Hub held an event outside its Ovens Street base to coincide with Tuesday's Melbourne launch and, similarly to Open Door Neighbourhood House in Burke Street, is encouraging participants to sign campaign postcards which will be sent to Minister for Carers and Volunteers Ros Spence, to highlight the plight of neighbourhood houses.

Through the campaign, NHVic is calling on the state government to increase the Neighbourhood House Coordination Program (NHCP) hourly rate by 25 per cent, which it says would restore funding for the houses to sustainable levels.

The state peak body is also seeking government support for 25 currently unfunded neighbourhood houses, and asking for a commitment to 20 new neighbourhood houses in Victoria's outer metro and regional growth areas.

NHVic believes the changes are needed at a time when almost half of Victoria's neighbourhood houses are running at a loss as they deal with rising costs, increasing community need, and a reduction in funding - the combination of which is forcing them to cut hours, staff and programs.

Open Door executive officer Loretta Waters and Pangerang executive officer Tennille Hall said both the restoration of funding and future commitments from the state government were essential.

"If we don't have funding from grants or other areas, funding is insecure," Ms Waters said.

"Our core (NHCP) funding is not enough to sustain basic operations.

"The only way we can operate is with the support of volunteerism, with over 110 hours of volunteerism being contributed weekly (at Open Door).

"The requested 25 per cent increase would reduce a lot of pressure."

Ms Hall said unless the increase in funding was received, services and programs would need to be ripped back "to the bare basics".

Pangerang is already set to close its childcare service at the end of this year, with financial challenges among the issues impacting the decision.

Ms Hall said the situation was "deflating", especially considering the rising need in the community for what neighbourhood houses had to offer - which could cover everything from digital literacy assistance to food pantry services, not to mention social connection.

Ms Waters agreed: "We see what works, and we want to be able to cater for those changing needs.

"When funding is not keeping step, we have to strip back on additional services."

NHVic chief executive officer Keir Paterson said neighbourhood houses were under unprecedented pressure, grappling with increased community need due to cost-of-living pressures as they dealt with cost increases themselves.

"Years of underfunding has pushed almost half into deficit, leaving them at risk of closure," he said.

According to NHVic, more than 185,000 Victorians each week access community support and local services through the more than 400 neighbourhood houses in the state.

"Without urgent action, communities risk losing the safe, inclusive spaces thousands of Victorians rely on every week," Mr Paterson said.

Open Door registers 250 visits each week by people accessing its programs and services, with Pangerang recording 210 visits weekly.

Participants at both houses report positive benefits from their involvement, and say the greatest improvement is in their physical and emotional wellbeing, and social connections forged.

Mr Paterson said NHVic data showed that for every $1 of ongoing neighbourhood house funding received from the state government, communities benefited to the tune of $21.94.

"We calculate the overall benefits to the Victorian community at $922 million per year," he said.

"We are saving the government money, now it's time to save our sector and keep our doors open."