Projects such as developing a new type of fundraising event, opening up a new kind of specialist shop or using new media in an innovative way to generate income will be eligible to apply.
The pilot scheme will run initially for one year, but may be extended. The total budget for 2007 is £30,000, which Help the Hospices expects to divide into approximately six grants.
The programme will also promote the sharing of good fundraising ideas among the UK's 194 independent charitable hospices, which together raise £400m a year.
"Most hospices have to raise several thousand pounds every day to keep their services going, so hospice fundraisers have to be continuously inventive and creative to keep their local communities supporting them," said David Burland, chief operating officer at Help the Hospices.
"The purpose of the grants is to encourage them even further in this for the benefit of the whole hospice movement."
All grant recipients will have to complete a report on the outcome of their project, which will be shared with other hospices and used at best practice workshops and conferences.
The deadline for applications for the first round of Innovation in Income Generation Grants is 29 June.