Although it was designed by the Home Office, in recent times the NNWA has been concerned at the way businesses have hijacked it to give potential customers an impression they actively support Neighbourhood Watch.
The NNWA responded by making the logo a registered trademark so they could more closely control how it is used.
Mr Howell said: "It is quite clear from a debate in the House of Lords that the Home Office will take over our role if the NNWA folded.
Minister of State at the Home Office Hazel Blears recently told the House of Commons: "Earlier this year the Home Office began receiving complaints from local schemes and one police force that the NNWA had registered the logos as trademarks.
Mr Jones, who helped establish the Colwyn Heights group in Upper Colwyn Bay in 1988, said he found the Government's motives ``sinister'' and it was essential that the NNWA
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Launching the awards, John Howell, NNWA
director-general, said: "There are hundreds of thousands of Neighbourhood Watchers in the UK, all of whom work incredibly hard for the benefit of their community.
Nominated by members of the public through their Kleeneze distributor or local NNWA organiser, the Award aims to reward people who help make our community a more caring, more neighbourly place to live.
John Howell, Director General of the NNWA said, "Many people today believe 'neighbourliness' has all but disappeared, but we are here to say that there are still those members of the community who believe in helping others and they are increasing in number day by day.