The groups slammed the policy of “politically-conditioned funding,” a statement from the Palestinian NGO Network conference in Gaza City said.
Stressing their support for the reconciliation deal between former rivals Hamas and Fatah, the conference called for a unified body to pass laws.
The Palestinian Legislative Council, last elected in 2006, has been defunct since the 2007 explosion in violence between the parties that separated the Hamas-run Gaza Strip from the Fatah-led Palestinian Authority in the West Bank.
Party leaders signed a deal to end the division in May 2011, but implementation stalled as the sides struggled to implement its key tenets, including a unity government to oversee the path to elections.
A fresh push was launched in late November after party chiefs met again in Cairo, and officials say they expect elections to take place in May.