The Material Girl adopted daughter Mercy James from the Kondanani home earlier this year but since the venue was linked to the singer, staff have been struggling to raise the required funds.
Organizers are adamant it's because of Madonna that potential benefactors are failing to offer their help - and they insist she did not hand them a huge donation, according to Britain's Daily Mirror newspaper
A source tells the publication, "We find it a day-to-day struggle to survive. Some days we don't even know if there will be enough food to feed the babies. Donors are not giving because they are under the impression Madonna paid us vast amounts of money."
Head of the orphanage, Annie Chikhwaza, adds: "I was never offered a penny. I did not expect any either."
Madonna also adopted son David Banda from another Malawian orphanage in 2006.
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