The first time I recall hearing about HandMade in America, I believe I was bent out of shape for it receiving some form of economic stimulus. HIA is a nonpfrofit, so it needed grants. If you have some money for economic stimulus, it only makes sense that you would give it to a nonprofit commissioned with stimulating the economy so they can be the fall guy when the economy does not respond. Actually, the mission of HIA was to:

grow economies through craft and creative placemaking, transforming both individuals and communities through education, entrepreneurship and economic development.

Now, HIA is announcing its intentions to go bye-bye. No reasons to close are offered in the press coverage. The organization was apparently a booming success up to the very end, if you believe PR-speak. The moral of the story is, with or without government stimulus, organizations will come and go.