The North West Simon Community is to close with the loss of seven jobs.
The charity is set to go into receivership in the coming weeks.
Established first in 2005, the charity has been helping those who are experiencing homelessness and housing exclusion in Sligo, Leitrim and Donegal.
A lack of Government supports is to blame with fundraising efforts not enough to sustain the charity going forward.
Reassurances have been given that clients and service users will be taken care of during the transition, as it works to transfer its properties to another approved housing body or the relevant local authority.
Board Chairperson and Independent Donegal TD Thomas Pringle says it was a hugely difficult decision and that its too late for that decision to be reversed:
