The authority said it will help the families of people killed as well as those who were injured.
At least nine people died when the police helicopter came down on to the packed Clutha pub on Friday night.
Glasgow City Council said its charitable funds will be made available to anyone in hardship as a result of the tragedy.
Council leader Gordon Matheson said: "Those who are already suffering physically and emotionally need time to recover and to grieve. Money will be very far from their thoughts, but Glasgow will not allow their suffering to be compounded by financial plight in their hour of need.
"There will be people who are unable to work, or who face a lengthy road to recovery. Families face uncertain times ahead without loved ones.
"We can and will help them in the days, weeks and months ahead - and we know many of our fellow Glaswegians will also want to lend their support."
Scottish Secretary Alistair Carmichael met Mr Matheson this morning to discuss the response to the crash.
The UK Government minister praised the local authority's contribution, saying: "The efforts of the council match those of the people of Glasgow. They have not stinted.
"Some of the most basic needs, even just providing food for the rescue services, the sort of thing you might not think of otherwise, have been provided by the council.
"The response of the people of Glasgow has been magnificent and that has been reflected in the response from the council."