Epilepsy Action Australia is grappling with a $200,000 funding black hole after Dick Smith signed off on a major sponsorship deal for its biggest annual fund raising event less than three weeks before the administrators were called in.

The charity's chief executive Carol Ireland said Dick Smith signed off on deal on December 17 and gave Epilepsy Action Australia assurances it could proceed with printing all the material for its Purple Day fund raising activities, which are scheduled to role out from next week to Purple Day on March 26.

Dick Smith agreed to provide $50,000 cash sponsorship as well as three $1000 gift vouchers as raffle prizes. Credit:Carlos Furtado

Ms Ireland said it had already printed all the Purple Day material featuring Dick Smith as the major sponsor but it was now facing a situation where it had no prizes for its major raffles, which were to be Dick Smith gift vouchers or distribution network for its Purple Day merchandise.

"This is our major fundraising for the year and Dick Smith had come to an agreement with us, which they approved on the 17th of December, just before Christmas," Ms Ireland said.