The Beaconsfield RSL is one of the first sub-branches to receive an $8250 grant to ensure it can continue its veteran support services after COVID-19.
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The sub-branch has more than 100 members and president Peter Broad said they depended on a weekly raffle at the Ophir Hotel and Anzac Day commemorations for income.
He said the money was needed for the vital services it conducted to look after veterans.
"I don't know if a lot of them would stay or whether they would be still alive today if it hadn't been for some of the things we do," he said.
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"Our income dropped ... to zero ... if we don't have a raffle and we don't get money in we can't do that,.
"We do claim a bit of money on Anzac Day but ... with no breakfast ... we had an $8000 or $9000 loss."
The grant was part of the state government's $500,000 grants program for organisations supporting veterans.
Veterans' Affairs Minister Guy Barnett said more than 30 organisations had applied for the grants before they closed on May 31.
He said sub-branches were doing it tough as their income avenues had stopped during the pandemic and the grants would be rolled out over coming months to help.
"We have 10,500 veterans around Tasmania and as a state government we want to provide support and care, particularly during this COVID-19 pandemic," he said.
"The vast majority are very elderly ... they're more vulnerable to the COVID-19 pandemic and that's why we're concerned for our veterans."
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