Pilgrim International, Australia's only Christian not-for-profit advertising agency has announced it will be closing the doors of its production facilities for good.

The pioneering ad agency was established more than four decades ago to assist Christian media needs and help generate funds for the spread of the Gospel.

Managing director Tim Matthews says the Christian community has now largely outgrown its assistance.

"The cost of production has plummeted and Christian organisations now use programs like PowerPoint, PageMaker and iMovie to do their productions - work we used to do," Mr Matthews says.

"So the demand from Christian organisations is not as great as it used to be."

This trend, combined with the loss of a major advertising client who accounted for close to half of Pilgrim International's corporate business, has forced the organisation to rethink its future.

"When we didn't regain the contract we thought we wouldn't be able to offer the full gamut of services to Christian organisations anymore," Mr Matthews says.

Mr Matthews believes the winding up of its creative, production and fundraising services by July will allow Pilgrim to fulfil its Christian mission by transforming itself into something more like a foundation than a company.

Pilgrim will consolidate its assets and use the proceeds to directly fund worthwhile initiatives.

"We’re basically in the stage of realising the assets at the moment and redeploying the staff," Mr Matthews says.

The decision brings to an end 43 years of service that has seen Pilgrim build itself into an agency dedicated to the not-for-profit sector, particularly Christian and charitable organisations.

Pilgrim pioneered the use of television with World Vision, bringing the world-wide issue of poverty into people’s lounge rooms through TV Specials and national campaigns for child sponsorship, emergency appeals and the 40 Hour Famine.

Pilgrim was also the advertising force behind a number of other of Australia's leading charities including Amnesty International "Human Rights Defenders', World Society for the Protection of Animals, the Leukemia Foundation and Greenpeace.

Pilgrim's Board will take several months to wind up operations before announcing the manner in which Christian organizations can apply for support.