Naomi House, a hospice that lost £5.5m in the Icelandic banking collapse, has shelved plans for a judicial review of the Government's decision not to compensate some of the charities that lost money in the crisis.
Cats Protection, which lost £11.2m and jointly chaired the pressure group Save our Savings with Naomi House, has also not yet gone to court over the decision, although it is still taking legal advice.
In June, both charities said they would press for a judicial review of the Government's refusal to compensate charities despite the recommendations of a Treasury select committee.
However, both charities said they would not rule out a court case in the future.
Selman Ansari, a barrister at specialist charity law firm Bates Wells & Braithwaite, warned that it would be "an uphill struggle" to persuade a judge to tell the Government how to spend money.
The administrators of Kaupthing Singer & Friedlander said both charities might eventually receive up to half the money they invested, but the process could take up to four years.