Banbury Town Council is improving its annual grants scheme to make more money available to more good causes.
The same level of funding, £30,000, will be up for grabs each year but it will be shared between a greater number of charities with a maximum grant of £500.
The former main grants scheme in which applicants could apply for thousands of pounds is being discontinued.
The council thinks the new method will be a fairer way of distributing funds and that more people will benefit.
Leader of the council Kieron Mallon said: “The grants scheme is very important to Banbury people. It helps charities, clubs, and good causes in the town who in turn help people in need.
“There are literally dozens of small organisations who support residents with a wide range of problems. Most exist on a shoestring and to them £250 to £500 would be massive amounts of money.
“We want to encourage those groups to apply for grants. We want to help those most in need.
“The council will consider every application and give grants wherever possible. Not everyone will want the maximum and the new scheme means we can help more than 60 good causes instead of a few.”
Details on how to apply for a grant are on the council’s website or potential applicants can call at the town hall to discuss the scheme.
Grants are available throughout the year – until the annual fund is used up.