At our council the chair is allocated a fund each year so that they can give money to local causes. (This payment is not an allowance paid to the chair) When I questioned this I was told that it had always been done and that the money did not belong to the chair, rather it was used by the chair to make donations when invited to school fetes etc.
To give this money the chair asks the clerk of council for a cheque, councillors do not vote on whether to give this money or how much - this decision is made by the chair alone (I'm sure if payment was requested for something unlawful the clerk would refuse)