(CNN) -- The curtain is coming down on the New York City Opera after it failed to raise the $7 million it needed to stave off bankruptcy.
On top of that money, the opera company also needed to raise an additional $13 million by the end of 2013 to put toward future seasons, it said in a news release.
Because it "did not achieve the goal of its emergency appeal," it said in a statement Monday, "the board and management will begin the necessary financial and operational steps to wind down the Company, including initiating the Chapter 11 (bankruptcy) process."
The company had hoped to raise $1 million of the $7 million through an online site, Kickstarter.com, in a campaign that ended Monday. It raised only $301,019 from more than 2,000 donors.
The organization raised $1.5 million outside of the Kickstarter campaign, according to Risa Heller, spokeswoman for the New York City Opera.
"The odds have been against us for a long time," George Steel, general manager and artistic director for the company, said in a video for the failed online campaign, "but in the face of that difficulty we have made tremendous progress."
The company, dubbed "The People's Opera" by former New York City Mayor Fiorello LaGuardia, was founded on the principle that every New Yorker should be able to afford to go to the opera, Steel said.
He explained that in order for the company to break even, it would have needed to sell every ticket for $600. Instead, the starting ticket price was set at $25 to make the experience affordable.
The New York City Opera received critical praise in the past for its world premieres of works including Robert Ward's "The Crucible" and Anthony Davis' "The Life and Times of Malcolm X."
It opened its current season on September 17 with the opera "Anna Nicole," which turned out to be the company's last production.
"We need the help of the people we were founded to serve to put on our season this year," Steel had said, speaking to New York residents and opera fans everywhere. "We need you to come together and carry it forward into the future. I hope we can count on you."
In a statement from the American Federation of Musicians, President Tino Gagliardi said that despite the musicians making great sacrifices in wages and benefits to keep the City Opera afloat they long feared this would happen.
"NYCO management's reckless decisions to move the New York City Opera out of its newly renovated home at Lincoln Center ... predictably resulted in financial disaster for the company," Gagliardi said.
The opera company left Lincoln Center in 2011 in an effort to save money. Since then it had staged performances at various venues.
This year marked the 70th anniversary of the New York City Opera, which opened in 1943 as the second opera house in the city. The Metropolitan Opera was founded over 60 years earlier, in 1880.