Councillors responsible for Falkirk's Common Good Fund told members of Falkirk Made Friends that the fund should be a last resort - not a first port of call.
The councillors were supportive of the project, which seeks to produce short films dramatising the lives of some of the people who forged Falkirk's reputation as an industrial powerhouse.
The £5000 they need will be used to pay for actors, scriptwriters and filming and editing equipment hire, as well as leaflets and information booklets to complement and promote the films.
Councillors agreed that while the project is worthwhile, the group has to establish itself as a charity and do some fundraising of its own first.
The Falkirk Common Good Fund can only be used for projects within the boundaries of the old Falkirk borough.