The carnival, which was scheduled to take place in Bruce Castle Park on Saturday 23 June, was cancelled owing to a shortfall of £18,000.
Organiser Nicky Price told Event he was "devastated" about being forced to cancel the carnival and felt he had let the community down.
"I was trying until the last minute to secure the funding we needed but to no avail. I think its time to hang up my hat and let someone else take the lead.
"It’s the same every year in that all the license requirements and finalising of plans goes down to the wire, but we have a new committee who were nervous about the shortfall. Naturally, they didn’t want to put the charity into disrepute."
Sponsors Sainsbury’s, Tottenham Hotspur and, for the first year, Haringey Council had donated money to the festival, as well as local businesses including Levene’s Solicitors.
Part of the festival did go ahead. The Carnival Parade snaked its way through Tottenham’s streets from 11am-1pm on 23 June.
Price said he hopes the new committee will be able to put the event on next year.
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