Sandy Bear, based in Neyland since 2015, has been supporting young people dealing with grief for two decades.
But due to Welsh Government funding cuts, the future of this important service is at risk.
Pembrokeshire County Council, which buys in the service from Hywel Dda Health Board’s Emotional Health and Wellbeing service, has been told it will lose £170,000 in government funding next year.
Last year, Youth Justice grant funding was reduced by £65,000, and further cuts of at least £45,000 are expected for 2016 -2017.