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The organisation's Secretary General Oliver Weingarten cited a lack of funds and "a lack of consensus among all the teams on a revised, non-contentious mandate" as being the reasons for the dissolving of the organisation
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FOTA couldn't even decide on things among the remaining teams, nevermind the full group. Remember it only existed from 2008-2014, and even in that time they couldn't decide on cost cutting or technical regulations, and even spat the dummy and threatened to go setup a new series on their own.
FOTA went the same way CCWS did. Both required the teams to put the series before their own team. This is why F1 should be run as a dictatorship. Who should be the dictator is the real question? The answer is probably not BE.