Griffith's Biggest Lap was set to get drivers' and spectators' hearts revving this October but has been postponed to 2021.
Lisa McKinnon from the volunteer organising committee said it wasn't a decision made lightly.
Mrs McKinnon said the main reason came down to crowd control during a time when people are expected to remain 1.5 metres apart.
"It's been something that we have to think about, how would we contain the event within the current environment?" she said.
While pandemic restrictions have eased, there's no certainty of what rules will be in place for the event.
In NSW public gatherings are still limited to 10 people.
The Biggest Lap brings in spectators and car owners from around the MIA and beyond with hundreds lining Banna Avenue.
Mrs McKinnon said even with further easing of restrictions, last minute changes were difficult to get done when organisers have to be prepared to address pedestrian safety, closing the road and arranging plans for any emergencies.
She said that was all part of the work volunteers did starting from the day after the last event.
"It takes months and months of planning, there's RMS regulations that have to be complied with, and they just can't be turned on and off," she said.
"We don't know if we'll be limited to 50 or 100 people, but how would you limit that?," she asked.
After paying public liability insurances, all the money raised is donated to Griffith Can Assist and Riding for the Disabled Griffith/Leeton.
Last year, $24,000 was shared between the charities - one of the largest amounts raised in the event's history.
"We absolutely committed to the two local charities, and absolutely devastated that we feel we have let them down this year," Mrs McKinnon said.
"The reason we support two local charities is wanted to keep and maintain that support in town."
Mrs McKinnon said organising committee were aware businesses which had sponsored the Biggest Lap faced their own challenges and didn't want to lean on them as they recover from lockdown.
She said planning for next year's event had already begun.
"The next year's event has to be epic, we'll be coming back bigger and better."
Can Assist president Olga Former said she could understand the reasons why the Biggest Lap had been postponed.
Mrs Forner said the event had been a wonderful support for both Can Assist and Riding for the Disabled.
"We will miss them, given the crisis with this virus, we can accept it. I think from volunteer's point of view, they're doing the right thing."