The organisation says the delay will effect youth groups' ability to plan ahead not just in terms of the delivery of services but also for their own financial survival.
NCYVS policy and communications head Faiza Chaudary said: "A delay in the scheduled comprehensive spending review could mean less time to plan for the delivery of much needed services and could place some voluntary and community organisations in an even more vulnerable position as they attempt to plan for the future."
The delay was announced this week by Lord Mandelson on BBC Radio 4's Today programme.
He confirmed that the review will be held off until after the general election, saying that the current economic instability made it too difficult to assess long-term spending plans.
It is widely expected that public spending will be subject to severe cuts when the current plans run out at the end of 2011, in a bid to address record levels of government borrowing.
Conservative leader David Cameron has branded the delay as "political deceit".
"It's a blatant attempt to cover up the truth about Labour's cuts," he added.
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