The charity provides round-the-clock care for people with serious and terminal illnesses.
But disruption caused by the pandemic had resulted in its fundraising efforts being slashed by almost a third.
Compton Care, which provides full-time inpatient care at its base on the outskirts of Wolverhampton, today launched a new fundraising drive in an effort to fight back.
It needs to raise £9.1 million a year to fund its normal activities.
However, restrictions resulting from the coronavirus outbreak have seen expected earnings slump by 32 per cent.
The charity launched its annual Light Up A Life fundraising effort today with several changes to adapt to the pandemic.
Supporter care manager Rebecca Stone said loss in revenue has forced the charity to consider cutting some of its services.
“This year has been hard and there is no denying it has had a huge financial impact on us, on our future,” she said.
“The Covid-19 pandemic has meant we are going to lose around £2.4 million of income this year, over 32 per cent.
“Whilst we have received incredible support from the public and have benefited from being able to access some government grants and relief, we are still facing uncertain times.
"We have had to consider some really challenging things.”