Mrs McHale said the sale proceeds would go into a trust fund if the club folded.
"We would be able to give the interest to charities in Rotorua, as it was Rotorua people who paid for it in the first place."
The club was unable to attract younger members and most current members were getting older, she said.
"Most of us are in our 60s, 70s or 80s and women these days are often working and have children or grandchildren to look after.
"It's unfortunate and a bit embarrassing as we've had a lot of support over the years from various trusts around Rotorua."
Mrs McHale said the board was still to confirm details of the sale with a local real estate company and the property would go on the open market in the next few weeks.
Inside the historic building, there is a large lounge, a smaller lounge room, storage room, as well as a large kitchen and toilets.