Community groups and charities will get funding extended for six months following problems with applications to a new fund.
The Integrated Grant Fund was to be replaced by a Glasgow Communities Fund and applications opened last year.
However, more than 100 organisations, one in four applicants had their initial bid rejected due to incomplete information or missing documents.
They were given an extension to re-submit until the end of January which meant there would be a delay in funds being allocated.
Some groups feared they would have to make staff redundant if funds were not paid by March 31.
Politicians in the city expressed fears for the future viability of charities and community groups and called for a rethink.
Decisions on the final funding allocations will now be delayed by six months and final decisions due in October.
Organisations affected by the delay have been informed and told by the council “this is not a decision that was taken lightly”.
Those who had funding from the old fund will have it extended by six months.
KATS pre-school nursery and after-school service in Sighthill, was seeking £141,000 from the fund, but they forgot to attach the charity’s audited accounts ahead of the closing date in October. The group feared 10 staff could be at risk.
A Glasgow City Council spokesman said: “Our intention is to extend the Integrated Grant Fund (IGF) to existing community and voluntary sector IGF projects for six months, subject to committee approval, to give them an element of stability as well as continuity of service for city residents who use and value the services provided by those organisations.
“We recognise that for some organisations the application process (to the new Glasgow Communities Fund) presented difficulties and the decision to allow them a short extension had an impact on our original timetable for decisions. Those applications are now in the process of being assessed.
“As a result we now have an additional 100 applications to work through and clearly this impacts on timescales.”
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