The Red Bird Mission School will be temporarily suspending operations at the end of this school year.
Officials do not know for how long, but say the money just is not there.
Just two months ago, the board announced the elementary school would be shut down for next year, but planned to keep the high school open.
Mission Board member Clifford Berry says donations have slowed recently, and sustaining the school for almost $2 million a year is tough.
"We've been having to take money out of the endowment for years, and it's just to the point where we couldn't do it anymore," Berry said.
Berry says the school had to make a difficult decision.
"To temporarily suspend operation of the school until money became available to properly sustain operation of the school," Berry said.
Amanda Metzger has three daughters at the school right now. She says she is disappointed the school is suspending operations, but understands.
"I know that it is a tough decision, and it is a hard blow to this community. But based on the economy they had to do this," Metzger said.
Berry, himself, has two children at Red Bird, and says they are upset.
"They've gone to school here almost their whole life, they don't wanna go somewhere else," Berry said.
However, he says suspending operations gives officials a chance to actively search for funding. He is hopeful that a sustained financial situation will be established to reopen the school.
"If the funding were to come in tomorrow, the school would reopen in August," Berry said.
"If Red Bird announced they were going to reopen, I would send my kids back there in a heartbeat," Metzger said.
Graduation for the class of 2010 is on May 30.