Castle Cary and Ansford carnival has been safeguarded for another year after receiving a £2,500 windfall.
The future of the carnival was uncertain after committee members sweated on raising the £6,000 needed to throw the annual spectacle.
However, this year's procession has been given the green light after Bob Little, Somerset county councillor for Castle Cary, donated £2,500 of his community fund to the cause.
Gordon Stockman, president of the Castle Cary and Ansford Carnival Committee, hailed the news.
He said: "It's a great relief as I don't think 2012 was a great success in terms of our fundraising.
"Some fundraising events have been bringing in £200, but when you see that you have to raise a total of £6,000 to just put the carnival on, it's a tough ask.
"I think it is increasingly difficult because families are struggling in the current economic climate.
"It's also difficult because of all the national and international causes that you see on television now.
"These charities and institutions do great work and when you see the way the programmes are presented you do feel obliged to donate.
"However, it's only natural that the more you give to those, the less is available for other local causes."
Although collections raise thousands of pounds for local charities, carnival organisers have traditionally depended on donations and fundraising to put on the processions.
But, as a result of dwindling funds, the carnival committee was recently forced to amend its constitution – ensuring 30 per cent of all collections and proceeds from programme sales will now be used to fund the following year's event.
Mr Stockman said carnivals remain crucial for the Somerset economy. He said: "Carnivals bring in £41 million to the local economy every year, which is the equivalent to the Glastonbury Festival.
"This is all dedicated voluntary labour, not a commercial entity. When you consider that, it is staggering."