Cassie Roma said on Twitter it was a "shame for all of us".
"So @AucklandPride has announced that there will be no #Pride parade in 2019, only 'a march'," Roma said.
"What an absolute, crying shame. I hope the $30k they crowdfunded goes into community initiatives."
The reports come after more than $30,000 was raised to replace Pride's corporate funding with community pūtea on Givealittle.
The page was created after several corporations withdrew their financial support for the event.
"And while we find this disappointing, we also see it as an opportunity to reclaim Pride for the community," the Givealittle page read.
"We are raising funds to help make Auckland Pride 2019 the best one yet."
At the start of this month, the Auckland Pride Board survived a vote of no confidence after division in the LGBTI+ community.
Hundreds of people gathered at Pitt St Methodist Church in central Auckland for a special general meeting of Auckland Pride.
After initially deliberating on whether to allow media into the meeting, a motion of no-confidence against the board was eventually put to a vote.
However, it was defeated by 52 votes - 273 for the motion and 325 against.
The board hit turbulence last month when it announced it would ban uniformed police officers from marching down Ponsonby Rd at the annual event.
The Auckland Pride Festival is due to run from February 1 to February 17.
