Mr McDonald, who took over the presidency on March 14, said the association had brought in valuers in the hope they could sell some of the items in the RSA's museum and had also asked about going into voluntary liquidation.
"They said 'not just yet'. There is some concern among members that we brought valuers in, but I have assured them we will do nothing without their consent. But, if we are forced into liquidation or receivership we will lose everything and no one will have any choice in the matter.
"There are two major issues we need to resolve in the next three months - getting our finances under control and changing our constitution so everyone can vote at our meetings."
At the moment the RSA's constitution only allows about 25 per cent of its members to vote at meetings. Those members had to have some sort of military connection and their numbers were dwindling.
"Times are tough, we have to admit that. Sometimes on a Friday night there are just one or two people in here when years ago you could hardly move for all the people.
"If we don't do something we're dead.
"We are bleeding and the RSA in Rotorua will not survive if drastic action is not taken to repair the haemorrhage."
He said the association had about 1200 members, which was good compared to a lot of other clubs. Membership costs just $35 per year.
"We are unique, we still have a lot to offer.
"Come to the restaurant or cafe, bring your friends in for a beer and a game of pool. You can hold a birthday, or a wake here.
"We even had a school visit us last week to see what we do and what we have on display.
"We are committed to fight for our RSA and the memory of those men and women who set this all up in the first place."
The former career soldier and Borneo and Vietnam veteran said he was hopeful a grant from a local charity organisation would allow the RSA to hire expert consultants to help get it out of trouble. He said there were also possibilities the RSA could rent out parts of the building to cover its costs.
- The Rotorua RSA will be holding a special Annual General Meeting on May 16 from 9.30am and is asking all members to attend.