The council is helping to maintain essential services for Brighton & Hove's LGBT community with a stop-gap grant.
The LGBT Switchboard (Lesbian, Gay, Bisexual and Transgender) is facing challenging financial conditions because of the recession. As a result the council has offered extra support with a £7,000 payment.
Switchboard provides a range of services, including help and advice on HIV/Aids, drug and alcohol problems and homophobic hate crimes.
The council distributes £1.6m a year in grants, mostly to community, sports and arts groups.
Cabinet councillor for equalities Ben Duncan said: "This organisation plays a crucial role in delivering council priorities. The LGBT community in Brighton & Hove is very large, pays its taxes and requires some distinct services which the straight community does not. So it's right for the local council to be supporting these.
"Switchboard provides great value by getting a massive amount of work done using volunteers but for some things they must have hard cash."
The organisation is working to overcome its financial challenges by reducing overheads, bidding for grants from other funders and working in partnership with other bodies. It currently operates with just 1.5 full-time equivalent jobs.
Natalie Woods from Switchboard, said: "Switchboard is facing lots of challenges right now and myself and the trustees are working hard at doing all we can to avoid closure.
"We are really pleased that the council is supporting us with this and the funding they have provided us with will be invested well in continuing to do everything we can to make sure that the LGBT community does not lose the help-line and counselling services that we provide. We would like to express our thanks and appreciation for this development funding on behalf of all of our service users, volunteers and staff."
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