Parents with children at a village school are raising money to buy classroom equipment and improve the playground.
The primary school at Fringford, near Bicester, suffered a budget cut of about £13,000 when the number of children on the school roll dropped slightly.
Marie Jungo, chairman of the school association, said: "We only lost two children, but the way the funding is worked out we lost quite a lot of money."
In an attempt to make up some of the difference, parents are planning a big money-spinning event to coincide with the school sports day in July.
Mrs Jungo added: "We have already begun collecting items and are asking local businesses to help out by donating vouchers or articles we could sell or prizes for the tombola."
Anyone with items to give should call the school on 01869 277397.
Collection can be arranged if donors are unable to take goods to the school.
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