Money donated or raised through town events will be used to help youngsters and older people continue their educations or complete a recreational challenge, such as the Duke of Edinburgh Award.

Town mayor, Coun David Clough, has been planning the project since he became mayor last June but does not yet know whether the project will be known as a charity, business or a trust.

He said: "It is the hardest thing I have ever done, as you have to be so precise."

Coun Clough, who lives in Home Farm Crescent with his wife Margaret, first talked to the Courier about his plans to set up a town-based fund last summer. He now believes volunteers have raised enough money to establish a fund, which could cost up to £2,000 to set up.

Speaking about the venture, he said: "It wasn't my idea - it was that of another councillor who asked me that if I ever became mayor would I think about setting up something for the people of Whitnash.

"We want it to be for the youth to further education, for middle aged people and silver surfers to provide training - we want to make it for everybody."

Coun Clough is hoping residents will take responsibility for the project and does not want future mayors to feel pressured into choosing the charity.

He said: "I wouldn't want other councillors to feel they have to carry it on and hope the residents of Whitnash will take it on.

"We will raise the money needed through community events, donations and charity football matches at the town's clubs."

Coun Clough explained the fund would be run by a committee, which would hear applications for grants two or three times a year and consider each case on its merits.

He added: "I am hoping that, with the fund being up and running, it will bring improvements for the town .

"By this time next year, I would like to have a sum of money in the account and would like to be using the interest to help improve the lives of people in Whitnash. The more they give to it, the more they will receive."