BackCare has made almost half its staff redundant and reduced the remaining eight to a four-day week in a bid to stay afloat.
The charity has laid off seven staff and now closes on Fridays. It would have faced permanent closure but for its reserves of £67,000 as at the end of last year.
Total income fell last year to £562,000, compared with a peak of £760,000 in 1997. The drop was blamed on substantial reductions from charitable trusts affected by stock market falls. Public donations and subscriptions to its publications also fell.
Nia Taylor, deputy chief executive, said: "It's been a difficult and demoralising time for all, but the redundancies have enabled us to put things back on an even keel."
BackCare has had to stop long-term representative projects such as taking part in conferences.
"We are working towards an absolute minimum total income this year of £400,000. Any more will enable us to do some campaigning," said Taylor.