The charity Cornwall Community Volunteer Services has closed.
A statement from the trustees of the charity, which was based in Camborne and offered a range of services including support for carers, said the charity had shut down because of financial difficulties.
The statement said the charity was forced to close because of a drop in income and grants, coupled with increasing costs.
"This has been exacerbated by the local government’s abrupt cessation of grant funding for the provision of essential services to the vulnerable and elderly in our society and has resulted in a situation where staff have been made redundant," the statement said.
The statement also said the charity had "bad debt" that meant it might not be able to repay all of its creditors. "The board continues to arrange settlement of our creditors’ invoices but due to a number of factors and, in particular, bad debt, this may not be entirely possible," the statement said.
The trustees of the charity might become liable for some of the charity’s debts, it said.
"Until a full assessment of the financial situation can be made at the end of this month, the board of trustees are unclear on the liability it must bear and, therefore, until then, cannot comment further," it said.
A spokeswoman from the charity said she could not add anything to the statement and was unable to confirm how many jobs had been lost as a result of the closure or what level of debts it had.
The charity has not filed its accounts with the Charity Commission for 2011/12.
Its accounts for 2010/11 show that the charity, which registered with the regulator in 1973, employed 52 members of staff in 2010/11 and had an income of £1.3m during the year.