The Law Society is set to launch a review of the Law Society Charity in a move that casts doubt on the charity's long-term prospects.

The review will look at the society's relationship with the charity, which was set up in 1974, including issues such as whether it should resume providing annual funding to the body, which only has reserves to cover it for the next few years.

It could result in the society taking the charity's work in-house and donating directly to individual organisations currently part-funded by the charity, such as Stonewall and Reprieve.

The society covers the allied charity's running costs of between £100,000 and £200,000 per year but has not contributed additional funds beyond this since 2004. Prior to this it gave up to £2m each year.

With reserves standing at only £1.3m, should the society opt not to resume funding the charity may be forced to wind down when its reserves run out.

Law Society chief executive Des Hudson commented: "For its part, the Law Society is keen to understand the charity's future plans and fundraising proposals. The society is also keen to explore how it might best support charitable works if that is approved since, at present, direct giving by the society to individual charities rather than through the Law Society Charity would save members of the society at least £100,000 per annum."

The charity declined to comment.