Recent financial statements supplied by the club illustrate its decline from a $14,000 surplus to a deficit of more than $100,000 in the space of two years.
The RSA moved at its annual meeting last month to sell its main building, including clubrooms and restaurant, at 6 Church St and extend the existing building across the road at 3 Church St, on property used by the Mosgiel Memorial RSA Bowling Club, to accommodate the downsized club.
That passed 130 to 89 with seven abstentions, according to the meeting minutes in the latest annual report.
A subsequent move to amend that motion urged members to sell the bowling club property and pay off all outstanding debt.
It failed 114 to 95. Some of those opposed said the bowling club still attracted strong support and the RSA could survive there, and that it cost significantly less to run than the bar and restaurant at 6 Church St.
A financial report supplied to the Otago Daily Times by the RSA highlighted the issues.
Food and beverage turnover for the 2019 financial period was down $93,000 on the previous year and gaming machine turnover dropped $11,000, the report said.
Overall, revenue dropped $140,655, though expenses also decreased by $92,474.
A recent policy change by the Dunedin City Council to prohibit organisations with a gaming or betting licence from receiving rates-relief grants had also hit finances. The RSA received rates relief of $11,825 in 2017-18.
In 2017, the RSA posted a surplus of $14,000 but two years of losses meant there was now a net deficit of $105,610.
The club was now in a working capital deficit, spurring the board's decision to stop trying to make money from hospitality.
Former president Tony Mobbs stepped down after the 2018 annual meeting.
''It's a fact of life, a sign of the times, not enough bums on seats, too many bills,'' Mr Mobbs said yesterday.
''It's not rocket science. We had 1300 members and 15% of them used the club.''
Mosgiel Memorial RSA chairman Peter Amyes did not agree when asked if this was the beginning of the end for the organisation.
''I think this is a transition into a new form for the club. It will continue to exist as an RSA; it's just the operating model of the RSA, which was a membership model and running a fairly large building and large facilities, that is going to change.''
