The Otago Community Hospice recorded a net $152,000 deficit last financial year, after fundraising was less successful than hoped.
At the organisation's 25th annual meeting this week, chief executive Ginny Green said the hospice had been relying on $1.2 million from fundraising, but this had been made more difficult than usual because of the Christchurch earthquakes and resulting "donor fatigue".
An expected $100,000 donation did not eventuate.
However, regular donors remained committed to the hospice and donations for the year were above the target set, as was income from grant applications.
The hospice received $520,490 from donations, and made net income of $319,815 from its shops and $117,786 from special events.
She said she was delighted with the results in the circumstances and praised the "huge effort" of all involved.
While she did not like reporting a deficit, she was hoped the organisation would return to surplus in the coming year.
The deficit was the organisation's first in two years. The previous year it made a $45,277 surplus.
The increases reflected increased personnel costs and higher printing and stationery costs associated with an extension of hospice programmes.
Two-thirds of the medical workforce was now covered by a collective agreement with the Association of Salaried Medical Specialists, she said.
It had taken "significant financial commitment" from the hospice to meet the conditions of this, Ms Green said.
The balance sheet showed staff costs were about $147,000 higher than last year.
Net income was $3.364 million compared with expenditure of $3.516 million.
She told the meeting the hospice contract negotiations with the Southern District Health Board were looking "very promising" but had not been completed yet.
In his report, chairman of the audit and finance committee Peter McIntyre said the success of the Butterflies second-hand shop in Dunedin, which was a "fantastic source of revenue", had given the board confidence to trial a hospice shop in Mosgiel.
The trial had ended and the shop was contributing earnings, Mr McIntyre said.
Ms Green said it had been an extremely busy year for staff and "at times quite stressful".
Three programmes had continued to be developed during the year - the Kowhai programme, which helps patients, families and carers to cope at home; extending the use of the Liverpool Care Pathway for the dying patient by other healthcare providers; and its education programme.
During the year, after the departure of the hospice's medical director, the board carried out a clinical leadership and governance review, resulting in the setting up of a clinical advisory committee.
This committee reports to the board and supports the hospice's senior clinical team.
In the forthcoming year, collaboration with rural healthcare providers, the Southern District Health Board and Hospice Southland would be the focus, ensuring the palliative care needs of the whole region were being met in a planned and co-ordinated way, she said.
