The Yorkshire Waterways Museum will close this week after its parent charity went into liquidation with the expected loss of 15 jobs.
The Sobriety Project, which was set up in 1980 and is based in the East Yorkshire town of Goole, uses projects including the museum, community gardens and a healthy eating café for personal development and training for disadvantaged people.
The charity and its projects, including the museum, will close on 15 May after public funding cuts in Humberside meant it was unable to cover its costs.
A statement from the charity’s liquidators, Revive Business Recovery, said the economic climate meant it was unlikely the funding situation would improve in the short to medium term.
Cost-cutting exercises had been implemented at the charity, the statement said, but a "critical point" had been reached recently and the charity’s monthly funding shortfall had not been remedied.
The statement said that the trustees therefore decided to close the charity before the financial situation escalated.
The charity employed 15 people, a spokesman said.
The Charity Commission website shows that spending at the charity has outstripped income for the past two years.
Income in the years to 30 April 2018 and 2017 was £334,284 and £294,614 respectively.
But the charity spent £410,955 in 2018 and £373,120 in 2017, according to the commission’s website.
The 2018 accounts show that the charity was trying to shift its income sources from grant funding to a more commercial approach based on earned income and museum revenue.
The charity also had net current liabilities of £131,833, the accounts show.