The Care and Action Trust for Children with Handicaps, fronted by the actress Joan Collins, has closed following a month-long investigation by the Charity Commission into the organisation's tax affairs.
Last month, four of the trust's officials were suspended after an audit found 80 per cent of funds went on pay and overheads. Just £262,000 of £1.3 million went to youngsters last year.
The 30-year-old Swansea-based charity, which has a fundraising office in Manchester, provides holidays for children with brain damage, and their families.
There is no suggestion of impropriety by either patron Collins or actor Gordon Kaye, who was president of the trust.
Former model and president of the trust Linda Lusardi severed her links with the charity last year, although her departure had nothing to do with the investigation.