Cash to get community groups off the ground will still be handed out by Powick Parish Council, its members have decided.
They had considered dropping the grants scheme in order to build up reserves for an unspecified community project.
It was felt that some groups were coming to rely on regular grants from the parish, which was not the intention of the original scheme.
The council is also faced with bills for repairs to the bus shelter in Powick, the door of the sports pavilion in Callow End and two lamp standards.
"In view of our present circumstances and the expenditure incurred through vandalism, I think the time is right to suspend our allocation of grants in the short term and consolidate our funds," said John Mason, at this week's meeting.
"We should let ratepayers know what vandalism is costing the parish. Perhaps people would keep a bit more control of their offspring if they knew it was hitting their pocket."
Rod MacKichan said it had already been agreed that the cost of replacing the lamp-posts would come out of next year's budget.
"I think the grants are very beneficial to the community and it would be a shame to suspend them," he said.
"If we want to build up a reserve, we should look at increasing the levy from each household, which is very small."
It was agreed to keep the grants scheme and assess each application critically.
A maximum of £6,000 will be allocated for grants each year, but members will not necessarily make awards to the full amount.
"This isn't to say we can't consider other items that come along, but not on a grant basis," said chairman Andy Lamb.
One repeat application turned down by the council was for maintenance of Powick churchyard - though members said they were keen to co-operate with the parochial church council to help resolve the maintenance problem.
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