STRATHMORE RFC is among 20 clubs in Scotland to benefit from the Cashback for Communities Initiative.
Shona Robison, sports minister, arrived at Inchmacoble Park, Forfar, to share the good news that the club had been awarded £40,000.
The money will allow upgrading of facilities for the youth team.
Ms Robison said: “I am delighted to be here today to recognise Strathmore Rugby Club’s tremendous contribution in helping develop a thriving club game in Scotland.
“The funding the club will receive will help support the increase in the number of players interested in playing for the Strathie Sharks.
“Cash from the bad guys, the criminals, going into projects like this is a fantastic use of resources, putting them back into the community.
“Bringing children into the game is fantastic for us, because we know that getting active early on should result in a healthier lifestyle as children grow up.
“Clubs like Strathie Sharks have done a great job so far and what we’re able to do now is help you take that onto the next level.
“As well as Strathmore benefitting, there are clubs all over the country getting money to build the infrastructure for the future.
“We’re very keen to support Scottish rugby as well, because building the club game is important.”
Club president Jason Leslie added: “Now we can look to the future again.
“All the support given by everyone in the club has been great and I’d like to thank them. I hope this is a real springboard for the future of the club.”