The Southmead Project is at risk of folding unless it can secure new funding – but members and supporters are determined it will live on.

Not for the first time, the money problems of the celebrated project tackling domestic abuse and substance misuse were revealed at its annual meeting yesterday.

The accounts show a £46,100 deficit for 2008-9 following a £41,993 loss in 2007-8, and with Big Lottery grant funding running out next summer, the project will be working on its "exit strategy" from January unless new funding can be secured.

But chief executive Mike Peirce MBE feels there is a lot of hope and support from Southmead is as strong as ever.

He called for financial support from the city council and the Government as the project celebrates 15 years of helping people through specialist counselling and support for victims of abuse, parents and carers.

Mr Peirce, who will receive an honorary doctorate from Bristol University for his work, said yesterday: "There is hope. But in real terms I do not hear, financially, that we are going to be supported.

"While the doors may be closed, the legacy of the Southmead Project will live on."

There are 21 agencies that refer victims to the project – including the police and council – but none of them help pay for the service.

Southmead-born Catherine, 31, said her life has been turned around by the project's Touchstone counselling service.

As a young girl living in Brunei, she was sexually, physically and mentally abused by a group of men. By 13 she developed an alcohol addiction.

When Catherine was 18 she moved back to England but soon developed drug problems and depression.

In January 2006, she found Touchstone and learnt to exorcise many of her demons through paintings and drawings symbolising her abuse.

"Touchstone has helped me find the strength to look back and confront my past," she told the audience at the United Reformed Church, Southmead. "I have regained my life – not a textbook life – but my life."

She said: "I've found my voice and it's with this voice I want to thank everyone."

Avon and Somerset police's Chief Constable Colin Port said: "I think it's a fantastic project. It's vital that those who are abused have the opportunity to interact with someone other than the police."

Since the Southmead Project was set up, there has been no rise in domestic abuse in North Bristol.

It has recently set up Project Jigsaw, to work with Barnardo's, Better Together Project and Working in Southmead for Health. Jon Rogers, city council member for community safety, could not pledge any council cash, but said he hoped the Safer Bristol partnership could work together to ensure the future of the project.

MP for Bristol North West, Dr Doug Naysmith, said: "I'm sure we're going to come through this. We will work together to get the funds."

Trauma, Drug Misuse and Transforming Identities (Etherington 2007), a book which was sponsored by the Southmead project, has been so popular with a drug agency in Greece they are asking for it to be translated into Greek.

For more information on the Southmead Project visit www.southmeadproject.org.uk.