A total of 1,166 motorists have chosen to donate the money they paid in fines after driving along the Hemel Hemsptead Moor End Road bus lane to charity.
Herts County Council also agreed to donate £100,000 in unclaimed penalty charge refunds - which equates to around 3,300 fines - after a tribunal ruled that a camera put up in the road did not comply with strict regulations.
It means the Northchurch-based Hospice of St Francis will receive a cash injection of almost £136,000.
A remaining unclaimed £60,000 will be ploughed back into highways work.
Drivers were given the option of donating their fine of £30, £60 or £90 to the good cause or receiving it back - around 24,500 chose to put the cash back into their own pockets.
Hospice director Dr Ros Taylor, said: “We are particularly grateful to those people who have chosen to donate the refunds to our hospice.
“I would like to stress the need for on-going regular and vital financial support.”