The new facility will include up to 10 bedrooms - all with ensuites - plus plenty of space for the nursing team, who can care for up to 200 people on any given day mainly in the community.
Plans are currently being finalised to be included in the building consent.
Cranford Hospice Foundation chairman Chris Tremain said the new facility would ensure people in Hawke's Bay could receive the very best palliative care.
"We are blown away by the generosity shown by individuals, businesses and trusts.
"Their philanthropy means we have reached our initial 'green light' goal of $10m in
committed funds," he said.
"Green-lighting the project means Cranford Hospice will now proceed to secure
building consent."
To date, 44 large donors have made contributions to the project.
That includes Royston Health Trust ($1.5m), Weem Charitable Trust ($1m), and Hastings
District Council ($500,000). The Cranford Hospice Foundation endowment fund contributed $5m and the rest has come from numerous individuals, groups and trusts who have donated between $5000 and $300,000.
Royston Health Trust chairwoman Jacqui Gray said the trust was delighted to support the project.
"This whole of community project, situated between our two major cities, is an important
health initiative for the people of Hawke's Bay."
Cranford Hospice has been based at its current site in Hastings since it opened in 1982.
In 2017, it was decided the hospice required a new and expanded home.
The Joan Fernie Charitable Trust generously donated the site for the new hospice facility in Pakowhai.
The hospice has not made a decision on exactly what will happen to its existing site when it moves across to the new facility.