Brighton Pride's future as a free event has been secured after the organisers received a £20,000 loan from the city council to help meet a £50,000 deficit.
The organisation said uncertainty about the summer event was now over.
The shortfall had been met with the short term loan by the council, the £14,000 raised and a drive to make savings of £11,000.
Brighton's Winter Pride 2010 event was called off in November as part of the cost-cutting measures.
'Financial position secured'
The charity also announced that it had made one of its three full-time staff members redundant and put the others on four-day weeks.
Acting Pride chair Robert Clothier said: "With our financial position secured, any uncertainty about this year's Pride that there may have been is now over.
"We are committed to working with our new production company, Fisher Productions, all our other contractors, LGBT [lesbian, gay, bisexual and transgender] businesses and community groups to make this year's Pride festival better than ever before.
"We have exciting plans for the Pride Parade and the main park event on Saturday 7th August, which will be announced very shortly."
Tens of thousands of people attend Brighton Pride, which will celebrate its 18th birthday in 2010. Staging the event costs about £350,000.
Financial losses last year were blamed on poor weather conditions, higher running costs and the recession.
A spokesperson for the local authority said: "This short term bridging loan is support for the restructure of the Pride event as they deliver their 18th Pride in 2010."