Organisers of Pride in Brighton and Hove, one of the most successful gay events in England, want charitable status for it.
The move is being made in an effort to boost the organisation's ability to give more grants to the voluntary sector and secure its future.
The annual Pride event is one of the few free gay festivals in the country and attracts more than 50,000 people each year to Brighton.
The event starts with a flamboyant carnival in the city centre, the theme this year being the Greatest Show On Earth, followed by a day-long festival in Preston Park.
It is one of the most popular events on the gay calendar and has become world-renowned as it has remained a free event.
Each year money raised at the event is donated to local charities.
The Pride in Brighton and Hove committee, which organises the event, has received three private donations to cover the costs of a specialist firm of consultants which helps organisations gain charitable status.
The decision to make the move was made when an overwhelming majority of Pride members voted in favour of the proposal.
David Harvey, this year's committee chairman said: "It's a really important first step to maximise Pride's fund-raising potential and increase the grants handed out to the lesbian, gay and bi- and transexual voluntary sector community in the city."
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