Bronz Otago president Mary Storey said the motorcycle club had planned to donate Easter eggs from Cadbury, food and cash to the Salvation Army in Dunedin after the rally this Saturday from Careys Bay to the city, then up George St to the Octagon.
However, the cost of closing streets for the 15-minute George St parade had forced the organisation to consider cancelling it and instead gather at the Dunedin Railway Station.
About 120 motorcycles are expected to participate.
Ms Storey said it cost $500 to close the street ''if you do it on the cheap'', but normally it cost about $1200.
''The cost of traffic management has become too much.
''I don't know how other non-profit organisations can afford to do it. It's a huge amount of money for the sake of a 15-minute parade.
''I think it's a shame we can't do something for the community without paying a very high price.
''I feel like they are obstructing us. It's disappointing.
''It's a real shame they can't see the way clear to make it easier for people trying to do something good in the community,'' she said.
But council community events co-ordinator Marilyn Anderson said the council did not charge groups to close city streets, other than the cost of the advertising legally required to notify the closure, which was a standard fee nationally.
However, there were safety regulations that groups wanting to close roads had to abide by and that meant having traffic management.
Any costs related to that were entirely the responsibility of groups wanting to close streets, and nothing to do with the council, other than when it was a council-funded event, such as graduation parades or New Year's Eve concerts.
The council was happy to provide not-for-profit groups with advice and guidance, but it was each group's responsibility to ensure the legally required safety measures regarding road stoppages were in place.
''It's all in the name of safety.''
Not-for-profit groups could still have their marches or road closures, she said.
''All they need to do is think about it in advance and do some fundraising for it. There are funders out there who will cover costs like this.''
Ms Storey said the traffic management company Bronz Otago had been dealing with had offered a much-reduced price for the group, but it was still too much.
The rally had previously worked with a not-for-profit trust that did traffic management around Dunedin but, after a few issues last year, had approached a commercial company.
The event would usually have been organised in December, but the group learned only about three weeks ago Cadbury was going to provide eggs this year, Ms Storey said.
