Following successful Olympics and with the Commonwealth Games looming, MSPs were told the biggest opport-unity was in danger of being squandered.
Organisers of an award-winning weight-lifting club in Glasgow's East End told the Health and Sport Committee at Holyrood that cash was not being routed to groups working in the community.
The Gladiator Progr-amme, in Easterhouse, joined tennis champion Andy Murray's mum Judy and former Commonwealth Games 10,000m champ Liz McColgan to give evidence on community sport participation.
Gladiators Progr-amme chief executive Alex Richardson, a former Evening Times Community Champion, said: "Sport saves lives in places like Easter-house, it gets kids off the streets and away from gangs and crime."
But he added it was offered "crumbs" from organisations such as Glasgow Life and that last year it was offered £3000, but this year has had to pay off its two full-time coaches after a £40,000 funding programme ran out.
Earlier the meeting heard that there was a shortage of coaches and volunteers to deal with the demand by children inspired by the Olympics.
Liz McColgan said: "We are not getting the support."
She said 120 children turned up at an event recently but only two coaches were available.
Judy Murray said as well as world class facilities, local facilities and top quality coaches were needed.
She said: "If we are going to produce world class athletes we need world class coaches and we don't have that."
Glasgow Life rejected any claims they were not funding local community groups.
Its spokesman said: "Suggestions that we will only fund groups which use the facilities we manage are wholly without foundation.
"We already work with around 300 clubs delivering grassroots sport in Glasgow.
"Gladiators has received hundreds of thousands of pounds of public funds in recent years for specific projects and a further £20,000 for specific school sessions was agreed last week in conjunction with Glasgow Life."