Talks are ongoing to merge a historical village charity with another.
Snettisham Parish Council is negotiating with another organisation in the village to take over the administration of the Townslands charity.
This charity was set in the 1700s and receives £500 rent for the chalk pits.
Parish clerk Simon Bower said it would be unfeasible for the council to continue to administer the charity and would not identify the other party.
He said: “We are holding negotiations with another charity.
“If that falls through the next option would be for the Charity Commission to become custodial trustee.”
There is a dispute over £2,300 which was transferred from the charity account into the council’s in 2007.
Villager Maureen Steinacker wants the money to be returned. She says the council was compensated for this in the £70,339.63 goodwill gesture from Barclays Bank in 2012.
The council says it has found a signed copy of accounts which proves this was authorised and has received no compensation for this.
Mrs Steinacker is pleased merger talks are occurring and added: “It is important that this charity’s income and assets and land remain for the benefit of Snettisham.”