Residents are raising £25,000 to provide toilets they say are desperately needed at their local park.
But Brighton and Hove Council is balking at the gift because it cannot afford the running costs.
Members of the residents' group PARC - Play Area in Rottingdean Community - put their case to a Brighton and Hove Council scrutiny board.
They estimate the cost of building toilets in the recreation ground off Falmer Road to be £20,000 and are prepared to raise a further £5,000 to cover emergencies such as repairs after vandalism.
Rottingdean Parish Council is prepared to raise £5,000 towards the cost but also says it cannot meet the maintenance costs.
PARC secretary Cathy Taylor told the meeting at Brighton Town Hall the toilets would be as vandal-proof as possible. She added: "We are prepared to give them to you."
Des Turner MP, who backs the residents, said the council's policy on toilets was too rigid and urged members to accept the donation.
He added: "There are no toilets in this park at present, which is a bit of a public health hazard with people having to go behind hedges.
"PARC have a good track record and I am sure they will be able to raise the money. It would be curmudgeonly of the council not to look at this proposal."
But environment officer Tony Curtis said the cost of the toilets' upkeep could be enormous.
He said: "You ought to see some of the vandalism we have experienced. People go to them with hammers and chisels and it costs a lot of money."
But local Tory councillor David Smith said: "This is peanuts we are talking about. The council doesn't often get an offer like this and we should accept it."
The board is asking Brighton and Hove's ruling Cabinet to vary its toilet policy so new schemes can be considered where residents raise the money.
People living around Queen's Park and Blaker's Park in Brighton are also pressing for new toilets to be provided there.
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