Non-profit organization Literacy Newfoundland and Labrador will be closing its doors at the end of July.
The group lost its core funding from the federal government amid cuts last year, and has not been able to confirm any additional funding.
Literacy NL had requested more than $1 million from the provincial government to cover its funding loss.
Chair Derrick Sheppard says they were only approved for a single $100,000 item: digital literacy for seniors.
"The problem was our board didn't really feel that we were capable of doing the job that needed to be done with that amount of money and knowing full well that we didn't have an out and out commitment three years down the road," he said.
According to Sheppard, the closing of the organization is bad for the province as a whole compared to the rest of Canada.
"The provincial government really needs to take literacy seriously," he said.
"As we move into the next decade, I think it's very important that they make long-term commitments to literacy programming and development given the fact that we are indeed the lowest, one of the lowest, provinces and territories in the country."
The organization initiated and supported literacy projects and research throughout Newfoundland and Labrador.