Organisers of the gig, in Dallas, Texas, announced that the show had switched venues, before stunning concertgoers by axing the show altogether late on Friday.
Joyce Goss, executive director of the foundation, tells the Dallas News, "We faced a disappointment that is immeasurable for us, our scholarship recipients and our supporters. Both Kenny Goss and I are extremely disappointed that TheEvent featuring Prince was cancelled.
"It continues to be our understanding that River Alexander Group, the event organiser, was unable to fund and produce the evening. Up to the very last minute they assured us the ‘show would go on.'"
Sources tell the Associated Press the financial problems resulted in Prince and his band being unable to travel to the concert.
The insider adds, "Prince is extremely disappointed that the organisers were unable to bring him and his band to Dallas. They say that apparently they lost their investors and were unable to adequately fund the event."