Fourteen organisations are set to benefit from Shellharbour City Council sponsorship valued at $36,000, if endorsed by councillors on Tuesday.
In June, plans to hand out $48,500 worth of grants to 17 organisations were deferred as debate continued over the council's contribution to the Shellharbour Sports Assistance Fund (SSAF).
An application to help fund the proposed Sunset Cinemas and Sunset Food Markets by the Lake was also questioned by councillors.
Formed nearly 40 years ago, the SSAF provides financial aid to Shellharbour's athletes to help them compete at state and national events.
Last year, council staff suggested the group's annual $10,000 allocation be withheld, given the SSAF's "healthy bank balance" of $32,000 and because council did not support other residents involved in activities at a state and national level that were not sport-focused.
Under the new policy, groups such as the SSAF must apply annually.
Earlier this year the council's financial assistance working party assessed submissions and proposed the council allocate $6000 to the SSAF, with a further $4000 for the fund's annual awards dinner.
However Cr Helen Stewart, a council representative on the SSAF, said last year an agreement was reached that $10,000 in funding would remain in place for the 2013-14 and 2014-15 financial years.
The council has now set aside the $12,000 earmarked for the SSAF, markets and cinemas for the council to consider at a later meeting.
Some of the groups proposed to receive support include the RYDA Road Safety Education Program ($3500), Southern Stars ($5000), Albion Park Show ($4000), Illawarra Business Awards ($5000), the Camp Quality Convoy ($3500), the Roller Hawks ($3000), the Relay for Life ($2000) and the Oak Flats Billy Cart Derby ($2500).