The debated, American and Israeli-supported Gaza Humanitarian Foundation (GHF) declares it is terminating its aid operations in the affected area, following nearly half a year.
The group had already suspended its several relief locations in Gaza subsequent to the halt in hostilities between Palestinian factions and Israel came into force in recent weeks.
The GHF aimed to avoid UN systems as the main supplier of relief to Palestinian residents.
International relief agencies refused to co-operate with its approach, saying it was unethical and unsafe.
Numerous Gazans were lost their lives while attempting to obtain sustenance amid disorderly situations near the organization's distribution points, mostly by Israeli fire, according to the UN.
Israel said its soldiers fired cautionary rounds.
The GHF said on Monday that it was terminating work now because of the "effective conclusion of its crisis response", with a aggregate of 3 million parcels containing the equivalent of more than 187 million meals distributed to Gazans.
The foundation's chief officer, the executive director, additionally stated the US-led Civil-Military Coordination Centre (CMCC) - which has been established to help carry out the United States' Palestinian peace proposal - would be "adopting and expanding the approach the organization demonstrated".
"The foundation's approach, in which Palestinian factions were unable to divert and benefit from humanitarian assistance, had major impact in bringing Palestinian factions to negotiations and securing a halt in hostilities."
Hamas - which denies stealing aid - supported the shutdown of the aid organization, as indicated by media.
An official from declared the foundation should be subject to scrutiny for the harm it caused to Palestinians.
"We request all global human rights groups to guarantee that responsibility is assigned after leading to casualties and wounds of many residents and concealing the food deprivation strategy practised by the Israeli government."
The organization commenced activities in Gaza on late May, a week after Israeli authorities had somewhat relaxed a comprehensive closure on relief and commercial goods to Gaza that lasted 11 weeks and resulted in critical deficits of essential supplies.
Subsequently, a nutritional emergency was proclaimed in the Palestinian urban center.
The foundation's nourishment distribution centers in the southern and middle regions of Gaza were operated by American private security firms and situated within areas controlled by Israeli forces.
The UN and its partners stated the system violated the fundamental humanitarian principles of objectivity, fairness and autonomy, and that directing needy individuals into military-controlled areas was inherently unsafe.
The UN's human rights office reported it tracked the deaths of a minimum of 859 residents attempting to obtain nourishment in the proximity to foundation locations between late May through end of July.
A further 514 persons were fatally wounded around the paths taken by United Nations and additional relief shipments, it further stated.
The majority of these individuals were fatally wounded by the Israel's armed forces, according to the office.
Israel's armed services stated its soldiers had released alerting fire at persons who advanced toward them in a "intimidating" manner.
The foundation stated there were no shootings at the aid sites and alleged that United Nations of using "false and misleading" figures from the Palestinian health authority administered by Hamas.
The GHF's future had been indefinite since Palestinian factions and Israeli authorities consented a halt in hostilities arrangement to execute the first phase of the American administration's peace initiative.
It said aid distribution would take place "free from intervention from the involved factions through the United Nations and its agencies, and the international relief society, in addition to other worldwide bodies not linked whatsoever" with militant groups and the Israeli government.
UN spokesperson the international body's communicator stated recently that the organization's termination would have "no impact" on its operations "since we never collaborated with them".
The spokesperson additionally stated that while more aid was getting into Gaza since the truce was implemented on 10 October, it was "insufficient to meet all the needs" of the 2.1 million population.
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