The St Leonards-based hospice helps 4,000 people a year in Hastings and Rother who are coming to the end of their life by offering a range of services including in-patient care, a 24-hour home call-out scheme, therapy and emotional support.

But the financial future looks bleak for the hospice, which costs £5million a year to operate.

A third of funds are provided by the primary care trust and the balance of £3.2million has to be raised from voluntary sources such as legacies, donations and fundraising events.

Last year income from legacies plummeted by more than half from £1.545million in 2006-7 to £670,000 in 2007-8.

Overall donations, including legacies, fell by 44 per cent last year and hospice chiefs say figures show the downturn is continuing.

Chairman Julian Avery said: "This is not a crisis but these are difficult times for the hospice. Despite what a lot of people think, the hospice is not a wealthy institution and there is real pressure on us to maintain this wide range of services.

"Legacies are very difficult to predict and we recognise that the current economic climate is going to make it more difficult."

Out of the £5million running costs, 75 per cent is spent on frontline services, 16 per cent is invested in fundraising and nine per cent covers administration costs.

In the six years up to 2007, a surplus income was generated and this money is now being used to keep the hospice afloat.

Hospice chiefs have thanked the local community for its "tremendous support" and are urging people to donate and remember the hospice in their will to ensure the services offered by St Michael's continue.

Chief executive Celia Pyke-Lees said: "We very much hope people will continue to support us."

Anyone wishing to help can contact the hospice on 01424 717968 or visit www.stmichaelshospice.org