Advisory and Support Centre Otago (Asco) deputy chairman Graham Hambleton said the centre was busy finding alternative options for about 180 people on its books.
In April, Asco was advised by the then Otago District Health Board it would not have its contract, worth about $145,000, renewed for the next financial year.
It followed a government funding cut of about $90,000.
Mr Hambleton said finding alternative options for those with an identified mental illness was relatively straight-forward, as they were eligible to attend other services.
More difficult were the long-term unemployed, for whom few options existed.
Mr Hambleton said the Community Trust of Otago had stepped in with extra funding to allow the centre to stay open until the end of August, if necessary, to allow time to find somewhere for each member.
The trust was also helping Asco liaise with other community organisations to work out options.
Asco would not abandon its charges and would find an alternative option for everyone, he said.
Five people, or three full-time equivalents, would lose their jobs as a result of the closure.
