Victim Support has contacted European far-right leader Martin Sellner about returning his donation to the organisation and has given him a deadline to respond.
On Monday, Newshub revealed Sellner had given part of a donation he had received from alleged Christchurch shooter Brenton Tarrant to the support fund for the attack victims.
- Alleged Christchurch gunman's donation to far-right European group offered to shooting victims
- Police investigating white supremacists' death threats against Winston Peters
- Who is Austrian far-right leader Martin Sellner?
However, Victim Support said it "does not believe it would be appropriate for us to receive this payment" and would offer to reimburse the donation in accordance with the law.
If Sellner didn't accept or respond to the offer, the funds would be given to an anti-racism charity.
Victim Support has now told Newshub it has contacted Sellner to say it "cannot receive this payment in good faith" and requested his bank account details.
"Should we have no response by 9am on Friday July 5 (NZ Time), Victim Support will pass the donation on to an appropriate anti-racism charity."
Sellner is the leader of Austria's Identitarian movement, Generation Identity. They believe in the concept of the Great Replacement: European culture disappearing under a wave of Muslim immigration.
Following the shooting on March 15, it emerged that Tarrant had given Sellner 1500 euros as a donation towards his Austrian anti-immigration movement. Sellner says he gave half to the victims of Christchurch and the other half to a project in Syria.
After receiving the donation, Sellner said to Tarrant: "If you ever come to Vienna, we should get a coffee or a beer."
Tarrant responded: "The same goes for you if you ever come to Australia or New Zealand. We have people in both countries that would happily host you in their homes."
Sellner told Newshub there were "no connections between me and him that I caused in anyway".
"What happened was that I received a donation by him, we exchanged a few emails, and since then no contact."
He has spearheaded opposition to the United Nations Migration Compact - a global set of non-binding guidelines on how to deal with the movement of refugees and migrants.
New Zealand's National Party has also expressed opposition to the Compact and began a petition against New Zealand's involvement with it.
But immediately after the mosque shooting, when one of the alleged gunman's weapons had anti-UN pact messaging - it was pulled down.