In a statement released 24 hours after the Mercury revealed founder Chris Beaven's rift with the organisation she helped create, the foundation disputed her claims she was "suspended".

"The foundation would like to make it clear that Ms Beaven resigned on her own accord on October 15," the statement by chairman Ken Jordan said.

"With regards to the comments made by Ms Beaven, we would like to say that these comments are disappointing.

"The board has tried working with Ms Beaven to achieve a positive resolution, unfortunately this was unsuccessful."

Ms Beaven said she had been secretly ousted by other board members in August.

"Unfortunately on August 20, they held a board meeting ... without me," she said on Tuesday.

"They have suspended me. I've been suspended. Evidently, I was accused of micromanaging new staff."

The woman who has been at the charity's helm for 16 years said could not explain further because she had been locked out from all KidzWish communications.

"The board has stopped me talking to anyone," she said. "I've been unable to talk to staff, stakeholders and sponsors."

Read more: Prominent KidzWish founder Chris Beaven tells of 'suspension' from charity

The foundation's head of business development and public relations Cameron Walters, who is also a Liberal Wollongong City councillor, will serve as acting executive officer.

"KidzWish staff and board are united, and the KidzWish Christmas Party and Charity Ball will go ahead as scheduled," the statement said.

"We are delighted to say the KidzWish Party is close to capacity and we are looking forward to bringing a smile to over 300 children from the Illawarra and South Coast.

"Delivering the new KidzWish place in Flinders is a priority of the foundation, and we look forward to working towards this.

"We wish Ms Beaven the very best in her retirement and thank her for her 16 years of service."