The Community Fund has deferred its decision on whether to merge with the New Opportunities Fund, following concerns voiced by voluntary sector organisations.

At a meeting last week, the fund's 15 board members agreed that a decision could not be made on the proposal until the government offered guarantees that any new funding stream would be free from government interference.

Charities fear that the Community Fund, which provides grants for the voluntary sector, could lose its freedom to support projects unrelated to government initiatives.

The fund is calling for an assurance that any new distributor would be as accessible to the sector, and for decision-making to be transparent.

Chairperson Diana Brittan said that those working at the fund were "anxious there should be full consultation with the sector about the principle of a merger before any decision was taken".