Childnet International has made most of its staff redundant and is desperately seeking new partnerships to help it continue its work on internet safety for children.
The charity is finding it increasingly difficult to raise core income.
Stephen Carrick-Davies, chief executive of the organisation, said the sector can sustain only so many charities dealing with similar issues and he wants to work with other groups to keep Childnet's work going.
He said: "There is a danger that charities duplicate and compete for rare valuable resources."
One partnership being considered is with the government-led Child Exploitation and Online Protection Centre.
Carrick-Davies would not confirm how many redundancies were being made, but said they involved most of the seven-strong staff.