Fenland Council for Voluntary Service is to continue operating on a voluntary basis after its local authority cut £15,000 of funding.
Fenland District Council told the CVS in March that its grant was being withdrawn.
Trustees decided that the work of the organisation should continue on a voluntary basis, but will conduct a review before deciding the organisation's long-term future.
Fran Monson, chair of the CVS, said in a statement that she was upset by the council's decision. "But having thought about the situation, we realise that the most important thing is to support our 216 members," she said.
No one from the CVS was available to confirm what will become of its salaried staff, or how many people were affected.
A council spokesman said it withdrew funding because Fenland CVS "failed to come up with a suitable business plan or to demonstrate that it was a viable organisation".