Giles McNeill, 40, cashed £20,000 of forged cheques and pocketed £9,365 in cash, including payments from members to attend a Boris Johnson speech.
Lincoln Crown Court heard McNeill stole the money over a six-year period between 2014 and 2020.
Judge John Pini QC described his conduct as “a gross breach of trust”.
McNeill, who was leader of West Lindsey District Council from May 2019 to September 2020, was sentenced after he pleaded guilty to charges of theft by an employee, fraud by abuse of position and forgery.
Andrew Scott, prosecuting, said: “Over a period of six years between 2014 and 2020 he defrauded local Conservative associations and individual members out of almost £30,000.”
The court heard McNeil forged 93 cheques in total, including 35 from the Gainsborough Constituency Conservative Association (GCCA), and 25 from the West Lindsey District Council Constituency Conservative Association.
His actions only came to light when Tracey Coulson took over as treasurer at the GCCA in 2019.
In a victim impact statement Miss Coulson said McNeill’s actions had caused huge reputational damage to the party.
The court was told McNeill began gambling in 2013, with the situation becoming “acute” by 2016.
Hal Ewing, mitigating, said: “Rather than admit he was becoming overwhelmed his gambling addiction began to spiral out of control.
“In the end he was unable to deal with the demands placed on him.”
Mr Ewing said references from fellow councillors, and MP Sir Edward Leigh, for whom he previously worked, made it clear “he was a hardworking and talented politician”.
“He went into politics for the best of motives,” he added.
Passing sentence Judge Pini QC told McNeill his “fall from grace had been steep”.
“If the electorate cannot trust those elected then politics breaks down. Your conduct was a gross breach of trust over a number of years,” he added.
McNeil, of The Chestnuts, Nettleham, near Lincoln, remained a sitting councillor for the Nettleham ward prior until his resignation last month.
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