Edinburgh councillor Colin Keir is donating a salary amount of £16,977 to support local projects following his election to the Scottish Parliament.
The funds will be allocated by the Western Neighbourhood Partnership using current Community Grants fund criteria.
The donation was confirmed at a partnership meeting last night.
Groups in the wards of Drumbrae/Gyle and Murrayfield/Corstorphine are eligible to apply for funding.
The SNP councillor said: “After I was elected to Parliament, I didn’t feel taking two salaries was the right thing to do.
“There were other choices available. I could have taken the salary and paid the usual tax and just handed it into groups I knew, or I could hand it in as a whole to the Neighbourhood Partnership.
“After I was elected I informed the council I wouldn’t be taking my salary.
"There were a few hurdles to cross in arranging this but this is the first meeting that can ratify it after the election.
“I wanted it to go to good causes.
"As I am a former chair of the Western Neighbourhood Partnership and the Community Grant Fund is there for the benefit of local groups I felt it was appropriate to ask them to allow me to donate it.”
Other City of Edinburgh councillors have made similar moves after being elected as MSPs. Green Councillor Alison Johnstone chose to waive her council wage.
Councillor Keir said: “It makes sure the money goes to local groups rather than the big pot.
“I am happy that the council have agreed to do this. It is not the first time anyone has done this, but it is great to see that money can be used by people in the community.”
The grant will be carried over into the next financial year if it is not all allocated by April.
Councillor Keir said: “I won’t be there as I am standing down t the next council elections to concentrate on Holyrood.
“There have been great things in the past that have had access to this fund
“It will be held separately as a donated fund.
"If we happen to get through our funding and start dipping into the donation fund, I can just declare an interest and step back and let the other people make the decision.”
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