Heanor Town will play in the East Midlands Counties League next season after opting to take voluntary demotion from the Midlands Football League Premier Division.
In a statement issued on Friday, the club cited financial reasons as their primary motivation for the move, with the increasing disparity between running costs and revenue meaning a switch to a division with more local teams and therefore less travelling was the most viable option.
Having to absorb the costs of the whole of the Town Ground's maintenance for the first time was also a key factor.
The statement added: "We are proud to be one of the oldest clubs in the country and will always put this first.
"We are currently targeted to have a cumulative loss of around £125,000 over the last five years and this is increasing year by year.
"The loss is purely on paper and covered by loans to the club from the current chairman.
"The chairman's view is that with a growing junior section at the club, his continued investments should go to infrastructure improvements at our site for the benefit of the whole club, including nearly 350 junior members and the wider community.
"It is our aim to be competitive in the EMCL and we will have a team equipped to compete for the title and silverware."
Heanor finished 13th in the MFL Premier this season and appointed Dan Martin as their new manager last week.