Renew Wellbeing is for anyone struggling with isolation and their mental and emotional health.
People take their own hobby, their own drink and follow distancing rules for meetings at Grantham Baptist Church.
Cllr Smith (St Wulfram's Ward) said: "This is a group responding to the need for those who feel isolated or stigmatised to go along to a small meeting and experience acceptance, share a hobby or enjoy a cup of tea and boost their self-esteem and positivity.
"It's a very worthy cause and this donation will go towards table cloths and hobby supplies."
Organiser Louise Lamb said: "We can host a group of ten people at each weekly two-hour session with provision to expand if numbers grow.
"It's legal for churches to provide meeting places under current Covid regulations to support those who can't access online or feel less comfortable with the technology. It's a café-style space, somewhere to belong, share hobbies and skills, and somewhere that everyone's equal and valued."
The group meetings, on Fridays from 10am to noon, are currently scheduled to resume on 8 January after a Christmas break. For more information go to www.renewwellbeing.org.uk