The Yukon Quest, less than a month away, is short of about $175,000.

Sue Thomas, the race's executive director, told the Star Wednesday the association is around $50,000 short in cash prize money.

Today, she confirmed the Quest is also short $125,000 cash for actual race expenses.

"Every year in January, the Yukon Quest is saying, ‘We need money,'” said Thomas.

"Last year, it wasn't quite as bad, but in previous years we've been in a very similar situation.”

If the Quest doesn't raise enough money by race time, Thomas said, the association will carry over the debt until the race is over.

That's not something she wants to do, however.

"I wish right now we were fund-raising for 2013 and going to this with a good solid plan,” said Thomas.

"Rather than working on sponsorship, we could be just focusing on running the race.”

Funds needed to offset costs of the race include the transportation of musher supplies to checkpoints, vehicle rentals to transport officials and veterinarians, fuel and support for the hundreds of volunteers along the trail.

Volunteer support continues to be strong year after year, Quest organizers noted in a press release issued Wednesday afternoon.

These volunteers are paid a small honourarium that barely covers the costs of food while they are working on the trail.

"So many of our sponsors return each year donating goods and services that are invaluable to the success of the race,” Marti Steury, the Alaskan executive director, said in the release.

"This year, the cash sponsorships are lower than usual, and even though we have cut costs as much as possible, we still need cash for paying suppliers and the purse.”

Sponsorship packages vary from $500 to $50,000.

Tourism and Culture Minister Mike Nixon told the Star this morning the government gives the Quest $150,000 worth of money to be spent on marketing every year.

"We are committed to continuing to support the Quest and recognize that it's an iconic winter event for the Yukon,” he said.

Nixon stressed that this isn't a government race. Since the government has already donated its part, he said, it's time for local businesses and organizations to do the same.

Earlier this week, Outside the Cube, the race's communication consultants for the past eight years, announced it will no longer be working with the Quest.

Dee Enright, the company's president and CEO, said in an e-mail that after Outside the Cube reviewed the Quest's direction with its new staff and board, it "felt it was the right time” to transition out.

"Outside the Cube has had significant growth and demands on our time from key clients,” she said.

"Some accounts like the Yukon Quest are ones we work on for the passion of the event than the revenue. Much of our work on the Yukon Quest was on a pro bono basis,” Enright wrote.

The Quest will try to do its own communications throughout the year, but will need to contract out some of the work during the race next month.

As for how Thomas, who has only been with the Quest since last August, will try to avoid a similar financial crunch next year, she said she's "already putting her thinking cap on.”

The total cash needed for the purse every year is $150,000.

It costs $550,000 to run the entire event; $400,00 of that is in cash and $150,000 is in-kind donations of goods and services.

So far, 32 mushers have signed up for the race, which has been run since 1984. Four of them are Canadian.

The 1,600-km race to Whitehorse will begin Feb.4 in Fairbanks. The event is expected to last 10 to 12 days, depending on trail conditions.