At the Happiness House Trust annual meeting in Queenstown on Thursday, manager Karen Stuart said for the first time in 13 years its application for a $20,000 grant from the Lottery Grants Board was declined, which was a "big surprise".
Mrs Stuart said that decision was made because the board had many people applying for funds this year.
The trust had been invited to apply for funding again, she said.
It also missed out on funding from the $10 Charity Trust Challenge, which was not held this year, and the Peter Wilding Trust had no funds available for the financial year.
Local businesses and organisations had been generous in their contributions totalling $12,070, but a decrease from the previous financial year when donations totalled $16,619.
There had also been an increase in day-to-day running costs, up $11,470 to $160,142, partly attributed to rising rent, wages and staff costs.
The trust budgeted for an income of $170,736, but received $138,663, while actual expenses were $160,142, more than $9000 less than predicted.
It was left with an overall deficit of $21,508, although cash reserves remained healthy at $185,266, Mrs Stuart said.
"With the rapid growth of the area we foresee continued need of our support centre and will also require the sustained support of our community and funders.
"Although we have seen a financial deficit for the first time in several years, we remain very positive that our centre will continue and evolve to meet the growing demand of our district."
A primary focus of the trust over the next year would be to secure a new, long-term lease on a property. Its present Park St premises was sold at auction for $2.213 million in June.
Trust chairwoman Nanette Benington said its lease there was secure until next October and it continued to work with the new owners on a year-long extension after that.
The trust was still seeking a viable long-term option and working with other agencies, such as Jigsaw Central Lakes, also considering a move to Frankton, the preferred location.
Wakatipu Youth Trust trustee Cath Gilmour said that trust had a similar problem.
At present, The Booth, a free centre for the Wakatipu’s young people, was located on the outskirts of the Queenstown CBD, but as the new Wakatipu High School was to be based near Remarkables Park next year, it needed a facility at Frankton.
"Where are we all going to go and how can we, as a bunch of voluntary agencies ... sustain ourselves in a place like this?
"How ... do we plan for everything with no resources on every front?"
Mrs Gilmour asked.
