Organisers of the St Pauls Carnival in Bristol have revealed they have a £10,000 funding gap.
Now, for the first time in the event's 42-year history volunteers will collect money in buckets to meet the shortfall.
Thousands of revellers are expected on the streets of Bristol for the carnival this weekend.
Pax Nindi, the event's artistic director, said he was not concerned about the cash shortfall which he insisted would be met.
"We're going to be going around collecting money in buckets because we do have this shortage," he told BBC News.
"It hasn't been easy because people who have funded us in the past haven't been able to this year, because of the recession.
Flamboyant costumes
"A month ago it was very worrying, but now the worry has gone because there's been quite a lot of people showing more interest.
"Last week when we were in Broadmead everybody wanted to find out if they could contribute some money.
"Like most events when we started, everybody was quite happy until we ended up with this credit crunch thing, but I am hoping that by next year this won't be one of our headaches."
The carnival, which is known for its flamboyant carnival costumes and entertainment, celebrates African Caribbean arts and culture.
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