The foundation had expected £2m of funding a year until 2009, but did not receive the first of two £1m instalments it was expecting to fund its 2008 grants (Third Sector, 3 October).
The foundation has since warned that it could close next year, a year earlier than expected. Today, Camelot directors will discuss whether the lottery operator should reinstate the funding.
Martin Brooks, chair of the Camelot Foundation, said foundation representatives had been working hard to persuade the group to change its position.
"We have put a very vigorous case for the Camelot Group to reconsider its decision, and we hope it will do that," he said.
A Camelot Group spokeswoman said that funding for the foundation had been scheduled to cease in early 2009, at the end of the second National Lottery licence.
"Camelot is still in discussions on details connected to the winding up of the Camelot Foundation," she said. "We will not pre-empt the outcome, and we cannot make further comment until discussions are concluded."
Last month, foundation staff wrote to Brooks, urging the board to do all it could to recover the funding (Third Sector, 31 October).