Angus councillors raised the amount of grant money community groups can apply for when they discussed moving to a crowdfunding model.
The community grant scheme, which has handed out more than £800,000 to 435 groups since it was introduced in 2009, is to be scrapped.
Under its replacement, applicants will have to raise the same amount they ask for through the crowdfunding platform.
The community grant scheme allows applicants to apply for up to £5,000 but officers proposed reducing this to £1,000 under the new model.
At Tuesday’s meeting of the council’s policy and resources committee, an appeal from Councillor Bill Bowles saw this increased to £1,250.
He said: “The pot of money at the moment is around £50,000 and there are roughly 40 applicants per year that are successful.
“This works out at £1,250 on average per application so I’d like to propose an amendment that we increase the level of that funding to £1,250 and not £1,000 and thereby using the pot up.
“I know the fantastic work that this money generates and it’s a great opportunity for assistance from the council for the many projects that help Angus. I know Carnoustie has benefited in many ways.”
Committee convenor Iain Gaul said the increased figure would have to be rubber stamped at the next meeting of full council.
Projects will use the current Crowdfund Angus platform to raise cash. It has supported 27 campaigns and generated over £90,000 since it was introduced.
Councillor David May said he was concerned the shift to crowdfunding might put off some groups from applying for council cash.
He said: “I have real concerns about this matter as the community grant scheme has been a huge success since it was introduced.
“It has made a huge difference to large numbers of community groups.
“I can fully understand the fact that we, as a council, are faced with having to make cuts. However I have real concerns that this new system will mean it is difficult for some of the community groups to develop in the way they have in the past.
“To be confined to crowdfunding will, I know, be a deterrent to some.”
Councillor Lynne Devine said the move was “innovative” and “democratic”.
She said: “It’s a very expensive way to do it at the moment. In times gone by we maybe had the staff to do it but it really takes up a lot of time across the board.
“With crowdfunding there will be support for groups going forward but it will not take anything like the number of staff required by the community grant scheme.
“It is much more democratic. Instead of pitching to the staff member, groups are going to have to pitch to their community. I think it is a great idea.”