Money which was given to the now-closed Macmillan Wolds Unit are guaranteed to only be used to help the people of Bridlington.
Amid the disappointment when the ward closed in March, there were fears that donations and bequests to the unit would end up being used in other parts of the region.
The issue was flagged up by staff and Jean Wormwell MBE, chair of the Bridlington Health Forum, but there has now been a promise that money which was received by the unit will not leave the town.
Health Stars is the organisation which looks after charitable funds for the Humber NHS Foundation Trust. It took action when the Macmillan unit was taken over by City Health Care Partnership.
A statement said: “The Trustees of Health Stars recognised the risk to the services in Bridlington.
“Taking this into consideration we decided to hold the funds within the charity it was entrusted to by the donors, when the contracted services were transferred to a new provider.”
It adds: “When the proposal to close the Macmillan Wolds unit was confirmed, a letter was drafted from our trustees to the Charity Commission to ratify our decision to continue enhancing the health and wellbeing of Bridlington residents with the funds entrusted to us.
“To achieve the wishes of the donors, we envisage a partnership with a wide range of stakeholders from the community, ensuring that the generosity of the local people, will impact on the continued health and well-being of the people within Bridlington.”
Health Stars has said it is planning to hold an information session in Bridlington within the next three months.
“The Trustees would like to reassure all parties that the charity will continue to act in the best interest of the donors and beneficiaries from the Bridlington area and look forward to working with you,” the statement adds.
Mrs Wormwell said: “We had a good meeting with Jenny Preston, the charity manager, and we are reassured now that the money will be used for Bridlington in some way – the hospital or the people.
“It will put a few minds at ease.”