An EGM was held by the club last week to discuss the way forward amid worries it could have to close.
The club building is used by the senior and junior youth clubs as well as the Peerie Club and a variety of other community organisations.
But the club has been struggling to meet its running costs for some time, with no money for new equipment or improvements to the single-glazed building.
Club chairman Gary Cape said the building is now set to stay open until at least Christmas to allow further talks with the council and time to pursue funding sources.
While the turnout was not as great as hoped, Cape said there were “sufficient concerned parents to make holding the meeting worthwhile”.
Immediate dissolution of the club and the liquidation of assets was discussed at the meeting, but there was no desire to see this happen.
The committee plans to talk to Shetland Islands Council’s education department, youth work services, community development, local councillors and other local stakeholders.
They have launched a crowdfunding appeal with a target of £5,000 to cover running costs.
“It was clear from the meeting that folk would consider the closure of the club to be a real loss, not just to the kids, but to the whole community,” Cape said.
“As a committee, we now have a duty to establish if the building can be saved in its current form and to do everything we can to keep the youth clubs running.
“I’m looking forward to meeting soon with other concerned stakeholders to find the best long-term solution for the children of Cunningsburgh.”
Local councillors have backed the cause, with education and families committee chairman George Smith previously saying that “reducing support for youth work is short sighted and goes against the ethos of early intervention”.