Ian Thorpe's Fountain for Youth was a small, non-religious charity established in 2000 to prevent and control illness in children, particularly Aboriginal or Torres Strait Islanders, and focused on literacy.

It was founded after veteran journalist Jeff McMullen took Mr Thorpe, then a teenaged Olympian, through disadvantaged parts of Australia.

Led by Mr McMullen, it has directed more than $7.4 million into remote-community projects over the past 14 years. Of this, $4.1 million came from public and corporate supporters and the remaining $3.3 million from federal government support between 2005 and 2012.

Ian Thorpe's Fountain for Youth's last accounts state the board met twice in the financial year and decided to stop operating the company by the end of calendar 2014 and wind it up in early this year.

Tim Heesh, of TPH Insolvency, was appointed liquidator at a meeting on January 20.

Liquidators say it is unusual for charities to be wound up and it is understood a merger was not considered seriously. Charities say small organisations can struggle because of funding pressure and overheads.

In a letter explaining the decision to close, Mr Thorpe and Mr McMullen said the "many years of sharp budget cuts to Indigenous education programs and organisations have convinced us that now we must work directly with our Aboriginal partners and not compete for the meagre funding available from public and corporate donations.

"Our decision is to work with our partners on mentoring of Indigenous high school students, promotion of cultural programs and development of a program with elders to reduce the contagion of Indigenous youth suicide."

Ian Thorpe's Fountain for Youth's accounts for the year to June 30, 2014, show total revenue of $165,512, compared to $265,048 the previous year.

Donations fell to $113,404, from $170,629 the previous year. In 2014, no government grants were received whereas the previous year $60,000 was received.

While the charity had $272,429 in cash and cash equivalents in the 2014 financial year, it is believed most of that money has been distributed and only tens of thousands remain.

Directors acted in an honorary capacity and have included broadcasters Stan Grant and Tracey Holmes. They have nominated AIME, the Australian Indigenous Mentoring Experience, to receive the charity's final donation.