The statue, which was virtually destroyed, was erected in 1909 and moved to the city cemetery in the 1950s, according to the newspaper.
The reward, up from the $2,000 originally offered by the Sons of Confederate Veterans, shows how outraged citizens are about the vandalism, which was discovered Aug. 31, according to a member of a local Confederate veterans group.
The increase is due to a "grassroots effort with many different donors," said Adam Bazemore of Camp 549 Sons of Confederate Veterans. "Some gave $100, some gave $500."
The statue is "priceless," he said, because it was purchased by survivors of Civil War soldiers who died in battle.
Sylvania is about 195 miles southeast of downtown Atlanta.