Donations to a Wolverhampton hospice have plummeted by thousands of pounds, forcing staff to cancel a major fundraising mission.

Compton Hospice generated £19,000 in donations in April and May – down £10,000 on last year. Bosses today blamed the credit crunch and revealed a Mount Etna trek had been scrapped.

Not enough volunteers have signed up to take part.

Hospice spokeswoman Sue Chance said: “Where people in the past might have been able to give £10, they are now only able to give £5.

“Times are harder for everyone and it is inevitable that we will see a decline in certain revenue.

“It costs £5 million a year to run the hospice, £1 million of which has to be collected through fund-raising, which is always a challenge, even during more prosperous times.”

Street collections have also dipped from £5,100 in April and May last year to £3,700 in 2009. Support and sponsorship from corporate backers has also declined.

Mrs Chance continued: “The Challenge of a Lifetime trip to Mount Etna in Sicily was scheduled to take place in the autumn. Hundreds were expected to raise the minimum of £2,350 needed to take part, but due to disappointing numbers signing up it was cancelled.

“We had lots of interest in the Etna trip but people just seemed hesitant in committing to raise the money necessary within the timescales.

“We are all aware that times are tough, but to attempt these kinds of once-in-a-lifetime challenges, we need to be able to raise enough money to make them viable.”

She added, however, the hospice’s charity shops exceeded their expected budget in April and May by £23,000 as they were being used more.