Staff at the scheme have offered to stay on and work for free, but the project cannot continue if no extra support is found.
The Worcestershire Pre-School Learning Alliance has been running its VIP scheme since 1991, supporting children aged five and under who have a disability or illness.
But now the Big Lottery Fund, which has given the scheme more than 700,000 over the last six years, has withdrawn its support. If the scheme cannot find alternative funding it will have to close at the end of this month.
The Pre-School Learning Alliance has pledged its support to the programme. Chief executive Steve Alexander said: "We are very concerned to hear the award-winning Worcestershire VIP scheme, which offers a vital service to young children with special needs and disabilities and their families, is threatened with closure. We are giving our colleagues all the support we can to secure the future of this much-needed scheme."
The scheme won the Queen's Award in 2007, making it one of only 71 organisations nationally to ever receive the award, which recognises the unsung heroes of voluntary and community work.
Without the scheme it is feared children with illnesses and disabilities will be unable to attend pre-school activities.
The scheme helps more than 75 children across 200 pre-schools and day nurseries across Worcestershire to participate in activities and runs an advisory group for parents and carers.
It also provides volunteers who can give children one- to-one support.
Staff at the scheme have already been notified of redundancy, but many have offered to stay on and work on a voluntary basis to keep the scheme going.
Manager Sue Heard is hoping to secure enough support to keep the project running.
She said: "With the help of charitable donations, from local businesses or individual support, we will be able to avoid closure and meet the costs of running the office until significant funding can be secured.
"This will mean we can continue offering support to the children with special needs."
