Compton Hospice, in Wolverhampton, is financed by voluntary donations, money raised in its charity shops and an NHS grant.

In two months time it will have a deficit of £150,000.

If more money isn't found fewer patients will be admitted and staffing will have to be reviewed.

Last resort

The hospice's business director Ron Middleton said some beds may have to be closed.

"A very worst case scenario would be that we might have to shut some of our 22 beds," he said.

"But that would be a last resort."

The hospice has been running for 20 years and currently has more than 500 volunteers.

Workers are appealing for more donations to ensure its services aren't cut.