Cymryd Rhan (Taking Part), which has been supporting vulnerable people in North Wales for 40 years, ceased trading on 31 March due to a lack of funding.
Chief executive Nick Evans said the charity had decided ‘enough is enough' because it could no longer guarantee its ability to do the right thing for people.
Evans added: ‘We started handing back and giving notice on contracts towards the end of last year with an explanation as to why we were doing that.
‘We have basically been transferring everything back and as from Monday (31 March) we stop trading.'
Evans said the charity had found alternative placements for many of the 300 people it was supporting.
Mario Kreft, chair of Care Forum Wales, said: ‘Regrettably, Cymryd Rhan's situation is not an isolated case. We have long warned of an unjust postcode lottery of fees with local authorities and health boards, with an ever widening North-South divide which has seen local authorities in North Wales paying irresponsibly low fees.
‘In the meantime, care homes, nursing homes and care providers across Wales are closing or withdrawing from contracts because they simply cannot afford to continue at the current levels of funding.'