A CHRISTMAS charity fund which has helped thousands of needy people is on the brink of collapse on its 30th anniversary.

Donations to the Mayor of Christchurch's Goodwill Fund Appeal have plunged by around 50 per cent in recent years, while both running costs and the number of residents nominated have increased.

Cutbacks are looming, but current Mayor Cllr Josephine Spencer has pledged that help will get through to deserving child, elderly and destitute cases next month, and is determined to keep the festive aid flowing in the future.

A mayor's Christmas cheer appeal has been running in the town for decades, but was only formally registered as a charity - and renamed the Goodwill Fund - in 1971. Run by a trustee committee of past mayors, it directs public donations and street collections to hard-up families and other worthy cases recommended by social services, housing associations, GPs and carers.

Each year, hundreds of grocery parcels have been provided for people struggling to make ends meet, plus pot plants for the elderly and sweets for children, all distributed free of charge by scout and guide groups.

But while 1997's appeal reached a record high of almost £3,000, last year's total slumped to £1,400.

Regular contributors have agreed to increase their donations to help keep the tradition afloat this year, but with demand greater than ever, the fund has fallen into crisis.

Cllr Spencer said: "This year's appeal is more important than ever, as increased costs and diminishing donations have left the fund without the resources to meet the normal expected requests for assistance. It is with great regret that the committee is having to make reductions in what help we are able to give, and the priority will be for children and the old and lonely.

"But I am determined the fund should not be allowed to be dissolved and we are seeking new ideas for fund-raising to enable us to return to normal next year."