One problem, I believe, is that the number of folk festivals has grown to such an extent that the market is saturated and for the smaller events even to break even requires some comparatively hefty subsidy or sponsorship - lose that and the event is no longer viable. The demise of a Folk Festival is almost never to do with rapacious "entrepreneurs" or people being "duped".

I don't know who the "UK Folk Revival" is nor how to contact it for support.