Over the past 20 years, hundreds of artists from Melbourne's outer eastern suburbs have displayed and sold their works at Monash's only community-run art space.

But last week, Highway Gallery secretary Laurie Ryan announced the gallery, on The Highway, Mount Waverley, would close on March 31 because of funding issues.

Mr Ryan said trading would be suspended for a month while members tried to secure funding.

He said the gallery was a victim of the global financial crisis.

"There are a lot more competing art exhibition venues such as schools and there isn't the money in the community generally to spend on buying artwork."

President June Ryan said the committee was looking at options to keep the gallery open after it lost $15,000 last year.

The Highway Gallery, established in 1990 as an initiative of the community of Waverley to serve the Monash and surrounding suburbs, is an incorporated association managed by a committee of management.

The committee and members met

last Thursday to discuss the gallery's future.

The Journal believes members are divided over how to handle the gallery's cash crisis, with some people accusing the committee of not being proactive as the gallery went into the red.

Former gallery director Colin Donald, who was sacked on March 11, said he had not seen evidence of the committee working on marketing or funding issues during the summer months.

Friends of the Highway Gallery member and volunteer Rita Danko said the committee

had not looked at ways of promoting the gallery.

"I asked what they were doing about it and they just said, 'Advertising is so hard'."

Ferntree Gully artist Steven Firman received a $1000 Monash Council grant to exhibit his graphic novels at the gallery in October.

Mr Firman said he might have to return the grant if the gallery closed.

Mt Waverley painter Mira Robinson said the gallery was a valuable community asset for artists to display their work and for the public to meet them and buy unique works at reasonable prices.

Ms Robinson, a painter and textile designer, is one of 21 people displaying work in the anniversary exhibition, which is open until Friday.

Highway Gallery committee members will meet with councillors tomorrow.