The Lancaster-based arts charity Folly is set to close after more than 20 years.
The Lancashire organisation, which specialises in interactive digital arts projects, blamed the closure on the "present financial climate".
Founded as the Folly Trust in 1989, it has worked on a number of art projects across the north west of England.
The arts agency plans to shut and dissolve its charitable status by the end of August.
Legacy and reputation
In March, Folly was one of 206 organisations who were told that they would have their funding cut completely by Arts Council England (ACE) from 2012.
At the time about 1,300 venues, theatres, galleries and arts groups had applied for grants from the council, which had its budget cut by £100m in October's Spending Review.
The organisation said that with the nature of the current funding environment it would be difficult to sustain the future delivery of the kinds of project it wanted to do which engaged young people.
"We are confident that Folly's legacy, reputation, impact and thinking will live on," Peter Connor, chairman of the Folly Board of Trustees, said.
"Folly's board of trustees, CEO Taylor Nuttall and his staff team are now bringing Folly's operation to a close in a dignified manner."
Some of Folly's recent projects include the Portable Pixel Playground, Digital Artist's Handbook, the Abandon Normal Devices Festival and Love Culture.