The Abbott government has backed away from distributing millions of dollars in grants promised to dozens of charities, community groups and local councils under Labor's national crime prevention program.

Some small charities say their existence is under threat because they have spent money based on draft funding agreements that will not be honoured.

Tony Abbott's government may not stick by charity funding pledges made by Labor. Credit:Alex Ellinghausen

The single biggest loser is the Police Citizens Youth Club, which has been warned that $7 million it was promised is ''on hold and unlikely to be delivered'', according to an insider.

The money was earmarked to provide youth mentoring programs in disadvantaged areas all over Australia, including the ''making men'' and ''girls' choice'' projects to steer young people away from a life of crime.