The Creating Change grant programme will offer each charity a maximum of £100,000 - £20,000 in each of the first three years followed by £15,000 for two years and a final sum of £10,000.
The funding is for charities with revenue of less than £250,000. It can be spent on running costs, with a maximum of 60 per cent on salaries, and on developing new and existing projects.
A peer network will be set up so that recipients and charities from the foundation's previous three-year grant programme can meet foundation staff for informal discussions.
Denis Wilson, chairman of the foundation, said: "Many small charities and community groups have found life difficult with the reduction in European funding in recent years.
"Often short term funding is insufficient if organisations are to develop strategically and work towards sustainability."
Charities have until 7 September 2007 to apply. An application pack is available online at www.lloydstsbfoundationni.org.