FEDERAL MP Ian Goodenough is facing demands for an investigation of his role in $20,000 of taxpayer funds being handed to a not-for-profit organisation of which he is a board member.

The Turnbull Government approved a grant last year for a nine-seater Volkswagen minibus for Northern Compassion, an organisation which says it helps youth overcome addictions, anxiety and depression.

The cash came from the Federal Government’s Stronger Communities Program — branded a slush fund by crossbenchers and former WA Liberal MP Dennis Jensen. The Australian Charities and Not-for-profits Commission lists Mr Goodenough as a board member for Northern Compassion.

Northern Compassion also runs a program called Tenacious House, which is also supported by Globalheart Church, a place of worship for many of Mr Goodenough’s internal Liberal Party backers.

The West Australian revealed last year Mr Goodenough helped Globalheart win a $20,000 grant for a playground under the same program.

Labor frontbencher Stephen Jones said the Opposition would use the first week of Federal Parliament to ask the minister responsible for the program, Fiona Nash, to investigate.

“This program is meant to support community organisations,” Mr Jones said. “It is not there to support Mr Goodenough’s Liberal Party in-fights.”

The Stronger Communities Program guidelines require MPs to appoint a “community consultation committee” to identify applicants and projects for assessment, before the MP recommends the projects to the Department of Infrastructure and Regional Development. MPs are also required to declare any conflict of interests.

When asked about the two grants last year, Mr Goodenough said he did not declare any conflicts because he did not believe there were any.

When put to him again after the revelation he was on the board, Mr Goodenough continued to deny there was a conflict.

“It’s not directly a conflict of interest because I have no involvement in deciding where the funds would go,” he said.

Mr Goodenough said 15 community organisations in his electorate had also received funding through the program.

He also said he was a vice-patron of the Sorrento Surf Life Saving Club, which received $18,411 for a replacement four-wheel-drive rescue vehicle.

Mr Goodenough said the decision to grant the funding was made by the community consultation panel, made up of Nicolas Trandos, Margaret Cockman and Bill Marwick.