Springboard Scotland has closed, making its 15 members of staff redundant.
The recently-published accounts of the CSV Group, which comprises the parent charity CSV and its Springboard subsidiaries, says that the reduced level of contracts available to Springboard Scotland "made the company non-viable".
The Springboard organisations provide training and vocational education for unemployed and disadvantaged young people.
The report filed to Companies House says: "A small amount of work has continued into 2012/13 but, unless new work is secured, the company will become dormant and charity and company registrations will be reviewed."
A spokesman for CSV confirmed that Springboard Scotland was now "dormant". He said its 15 employees lost their jobs at the end of 2011.
The accounts show that CSV Group’s income fell by nearly a third in the year to 31 March. It dropped by £10.8m, from £33.3m in 2010/11 to £22.5m in 2011/12.
The majority of the fall was down to lost funding from central government. The volunteering and learning charity had received £5.7m from the Future Jobs Fund before the scheme ended in 2011. The strategic grant it received from the Cabinet Office – worth £1.1m in 2010/11 – was also terminated at the end of that financial year.
CSV Group’s spending fell by £5.4m, to £24.3m, in 2011/12. A restructuring of the senior management during the year included the redundancies of two directors.
The accounts report states that the future context for CSV’s work remains "extremely tough".
The CSV spokesman said: "Obviously lots of charities and companies have been put in a similar situation, but actually we have got a strong operating base and the charity as a whole has been winning new awards and support, so we are confident going forward."