A charity set up to buy a Lake District peak admitted there is no prospect of success.
Friends Of Blencathra has been at the centre of a storm when the Earl of Lonsdale, who owns the mountain, said he had no intention of selling.
The charity was set up in 2014 after the earl put the peak up for sale for £1.75 million to help meet a £9m inheritance tax bill.
The bill has since been paid and Blencathra, also known as Saddleback, was taken off the market.
Dave Wheeler, chairman of the charity, said: "Last month we received an ultimatum to make a final offer for Blencathra within 21 days from the solicitors acting for Lonsdale Settled Estates.
"It was made clear that the offer would have to be substantially above the valuations we have received for the mountain to be acceptable and that the other proposals we had offered would not be considered.
"The property was vested in the name of the Eighth Earl of Lonsdale last week.
"The trustees of Friends of Blencathra Ltd have declined to make an offer on the terms indicated and with the change of ownership, now see no prospects of a successful purchase by the charity.
"The trustees will meet shortly to discuss the implications of that decision and prepare a public consultation on the future of the charity."
Over £250,000 was donated to the charity, which previously stated that any donation above £10 would be returned if the charity was unsuccessful in its bid.
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