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Supporters were told at an open meeting on Monday night that the club couldn't guarantee the players' wages for the rest of the season without a cash injection.
Invicta are fourth in Ryman League Division 1 South but they face selling some of their best players if the money isn't raised.
Storm damage at the Fullicks Stadium and the postponement of home games over Christmas and New Year have hit the club's finances, although Invicta remain debt-free.
Folkestone chairman Mark Jenner said: "What the storm damage did was cost us a bit more money, which was unexpected, and the fact we had matches cancelled due to the weather was another contributory factor.
"Truthfully, the back end of the season was always going to be difficult to fund the team that we’ve got. It’s not a particularly expensive side but it’s a long season and the last couple of months are always difficult.
"Normally what happens is you tend to lose players in the second half of the season and your wage bill goes down. We’re keen to keep the boys together that we’ve got and they’re all keen to stay and play right through to the end of the season and at least get to the play-offs."
Invicta manager Neil Cugley put three fundraising suggestions to the meeting, which was attended by around 50 supporters.
The club will sell life season tickets at £1,000 each, while Cugley plans to revamp the 'Friends of Folkestone Invicta' scheme, with the aim of 20 fans donating £100 each. The manager also hopes selling raffle tickets to people outside the club can increase revenue from £750 to £1,500.
He said: "My aim is to get back into the Ryman Premier, with no debt, and I think we can do that.
"But we do need the money otherwise they’ll have to cut the team."
Read more on this story in the Folkestone & Hythe Express.
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