Land occupied by the Koha Shed in Duncan St may be sold by Whanganui District Council to pay off debt.
The council's strategy and finance committee voted to put its draft property portfolio investment plan out for public consultation at a meeting held on November 28.
Koha Shed manager and founder Sherron Sunnex said the charity hopes to purchase the land and continue providing donated goods and support to people in need.
Ms Sunnex said the Koha Shed have been offered first right of refusal to purchase the property.
"We have a two year lease and we have formed a fund-raising committee to organise income generating events.
"The sale will have to be signed off by iwi and we have the lease so we're not too worried at this stage."
The Koha Shed moved to the former scout hall in Duncan St from a temporary premises in Hakeke St in 2015.
A flourishing vegetable garden has been established in the back yard and the produce is added to emergency food parcels distributed to people in desperate need.
The Koha Shed land is among the 23 properties lined up for possible sale.
Mayor Hamish McDouall said he is aware that some of the properties proposed for sale are likely to cause a "backlash" but said sales may bring increased prosperity to Whanganui.
"The real key here is to get business, iwi and council talking and driving Whanganui forward because we are constantly getting people dipping their toes in our economy and we've got to make sure they dive on in," Mr McDouall said.
Public consultation of the proposed plan will run from December 15 to February 16 and people can have a further say during the council's long term plan consultation in 2018.
For more information visit www.whanganui.govt.nz.