The union will hold its annual meeting next Monday and its annual report showed a profit for 2014 of $318,873, down from the $406,859 it produced last year.
The profit was on revenue of $2,743,669 against expenses of $2,424,796.
Union chairman Andrew Rooney said it was a good result, but there were dark clouds ahead.
''You are only ever semi happy. Off the field we have done well, but there is a tough year ahead, while on the field - though we don't want to be solely judged on how we do in the ITM Cup - perhaps we could have done a bit better,'' he said.
Rooney said the profit can be put down to hosting a test match, between England and the All Blacks in June last year, commercial income of more than $1 million and gate takings slightly above expectations.
''There has been a lot of hard work done by the board and staff and we have to thank all the volunteers who have done a heck of a job. We have come a long, long way in three years, but we still have a long way to go.''
The union was days away from bankruptcy in early 2012 with a debt of more than $2 million, but through agreements and prudent spending now has cash reserves of about $500,000.
Rooney said the positives for the union were the increase in playing numbers by 5%, a vibrant and active club competition and a building up of its cash reserves.
But he said it was a tough commercial environment and would continue to be so.
''We have always known, from two to three years out, that 2015 will be a tough year. We haven't got a test match this year, some sponsorships are coming to an end, and we have a couple of projects on the go which may end up costing us more money.''
He said the union wanted to improve its communication with its stakeholders and it could not afford to stand still, as the game and society was always changing.
The union gains more than $100,000 from hosting a test match and Silver Fern Farms is moving in a new direction with its sponsorship.
The union had 7680 registered players last year, with the increase coming in junior ranks.
The union received more than $1 million from sponsorship and more than $1 million from the New Zealand Rugby Union.
Rooney said the union was looking at its delivery of rugby and how best it could work for clubs.
''We want to know what the clubs want from us. Whether we have the right structure, have the right people in the right places. Times are constantly changing. It is a worry when you see a club like Lawrence not able to field a team.''
Otago disappointed in the ITM Cup, finishing second last in the championship, but Rooney said the union would not be looking at buying in players.
''We won't be going out shopping for players. It sends out the wrong message if you start doing that. You've got to make sure you have the development programmes right, the academy right, have the right infrastructure around the players.''
The union spent just under $800,000 on players.
The ITM Cup draw for this season has yet to be released, but Rooney hoped a favourable draw would help financially.
''A game against Canterbury at the stadium on a Saturday afternoon would be a whole lot better to us than a midweek game.''
ORFU
Out of the red
2009 $5.9m loss
2010 $634,871 loss
2011 $862,000 loss
2012 $134,656 profit
2013 $406,859 profit
2014 $318,873 profit
