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The embattled liberal group ACORN is in the process of dissolving its national structure, with state and local-chapters splitting off from the underfunded, controversial national group, an official close to the group confirmed.

"ACORN has dissolved as a national structure of state organizations," said a senior official close to the group, who declined to be identified by name because of the fierce conservative attacks on the group that began when a conservative filmmaker caught some staffers of its tax advisory arms on tape appearing to offer advice on incorporating a prostitution business.

The videos proved a rallying point for conservatives who had long accused the group of fomenting voting fraud. Though the videos did not produce criminal charges, they appear to have been fatal to the national organization.

"Consistent with what the internal recommendations have been, each of the states are developing plans for reconstitution independence and self-sufficiency," said the official, citing ACORN's "diminished resources, damage to the brand, unprecedented attacks."