A non-profit agency whose sole purpose was to get Canadians off their butts is about to shut down for lack of money.

Participaction has been told by the federal government it will get no more cash, and will likely fold by the end of the month.

"The real sadness is what will be lost to Canada and Canadian communities," said president Russ Kisby.

Formed nearly 30 years ago, Participaction made an immediate impact on Canadians with a television commercial comparing the health and fitness of a 30-year-old Canuck with a 60-year-old Swede.

The organization was set up by the government of former prime minister Pierre Trudeau, and was intended to battle the rising cost of health care by promoting healthy living.

On a budget of $1 million a year, Participaction generated public service announcements and organized events to raise awareness of healthy lifestyles and to get people moving.

But since 1994, the budgets have been cut, to just $385,000 last year, with no explanation.

Yet researchers into the state of Canadians' health say the budget line for Participaction was a bargain. Losing it, says Peter Katzmarzyk, is "quite devastating in terms of public health in Canada."

Katzmarzyk recently published a study that shows physical inactivity costs Health Canada $2.1 billion every year.

"The prevalence of inactivity has come down since the '80s so they have been effective," said Katzmarzyk. "People don't realize through Participaction's efforts we've saved billions of dollars in health care."

Other studies have recently shown that the rate of obesity among Canadian children has risen dramatically.