So says philanthropist and Palace founder Alexandra Seddon.

Ms Seddon, a lifelong conservationist who also helped develop Cowsnest Community Farm and Panboola Wetlands, said a "huge rise in wages and a huge drop in income" over the last year has left the Palace on a knife edge.

"Up until a year ago I have been able to cover the losses with my own donations and those of a few other people. That is no longer enough," she said.

"We do not wish to close our doors, but we may have to.

"Sadly grants are no solution because they are for projects, not wages, and there is no continuity."

Ms Seddon said one solution could be to find individuals or businesses willing to make monthly donations - tax deductible given Potoroo Palace's charity status.

However it would need around 1500 donors at $20 apiece each month to allow to Palace to once again "flourish".

"We could solve all financial problems if we could do this. It would enable us to flourish and continue our breeding of endangered species as well as educating the public into the future, providing a sanctuary for people as well as native animals," Ms Seddon said.

Ms Seddon said Yellow Pinch Wildlife Park flourished for many years from 1978 onwards, but by 2006 had become dilapidated and was put on the market.

Several wildlife carers wanted to save it and care for the animals, so one of them bought it and it became a charity.

"It has grown and flourished and become more like a sanctuary than a zoo," Ms Seddon said.

"It has become a home for countless unwanted pet native birds as well as many endangered species and unreleasable rescued wildlife."

The Palace has also become a sanctuary of sorts for mammals of the two-legged variety.

The sanctuary welcomes volunteers with disability, as well as Work for the Dole people who are able to learn skills as varied as welding or snake handling.

There are also people performing community service there rather than prison terms. There are others who are recovering from serious trauma, Ms Seddon said.

"One 80-year-old doctor used to come and stand in the midst of the big trees and declare, 'This is my church!'

"A 14-year-old was brought by his mother who told us he did not speak and could not go back to school. He worked with us for 12 years and was soon not only able to speak fluently, but was a driver of our little train and had a dry sense of humour and could probably have run the whole place single handed!" she added.

"Potoroo Palace is a magical place. We want it to continue."