The organisation supports 1,300 groups that help around 65,000 young people to participate in theatre projects.
More than 200 organisations lost out on Arts Council England funding after its central government budget was cut by £100m.
Jill Adamson, chief executive of NAYT, said: "It's totally soul destroying to see our organisation suffer and struggle for survival when it has played a vital role in supporting both grassroots and high-profile organisations for almost 30 years."
It is now seeking donations and asking people to sign an online petition. The charity had an income of £253,000 in 2009/10.
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