The annual outdoor exhibition, staged in Sydney on the Bondi to Tamarama coastal walk, attracts almost 500,000 visitors each year, with organisers claiming it is the world's largest annual free outdoor sculpture show.
This year's event is due to take place in mid-October, and founder David Handley said $200,000 was still needed to stage the art trail in full, and a scaled-back exhibition could go ahead with half that amount.
He blamed a lack of federal government funding for the shortfall.
"After nearly 30 years we have given up waiting for Creative Australia to show an interest in Sculpture by the Sea ... Creative Australia's indifference speaks volumes for how public arts funding is managed in Australia," Handley said.
Local independent MP Allegra Spender also blamed a lack of federal funding.
"It's disappointing that Creative Australia has left Sculpture by the Sea with a shortfall this year, but I know our community will step into the breach," she said.
The federal arts funding body says Sculpture by the Sea has not applied for any recent grants.
"Sculpture by the Sea has not applied to Creative Australia for any recent funding opportunities, including our recent arts project investments for organisations program, which closed on September 2," Creative Australia said in a statement.
"Funding does not automatically renew at the end of a funding cycle. To be considered for funding, organisations must apply for funding through an open and competitive process. Applications are assessed based on independent expert advice and according to published criteria."
Austrade has also provided a $1.5 million grant to support Sculpture by the Sea events at Cottesloe Beach in Western Australia in 2026 and 2027.
The upcoming exhibition in Sydney has axed its education program for school students, which usually sees 2400 students participate in artist-led tours and sculpture workshops.
Handley urged supporters to donate so the exhibition can go ahead.
"If 100 people or companies each donate $2000 we can make this year's exhibition happen. To families who have enjoyed the exhibition over many years or even for generations, we would gratefully appreciate any donation, small or large," he said.Â
Artists spend an average of $15,000 to make, ship and install their artworks along the clifftop trail, with some pieces from international participants having already arrived in Australia.
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