The volunteering charity v will receive £1.25m in core funding from the Office for Civil Society in 2011/12.
The charity, which was set up in 2006 with £117m in government funding, was given £37m from the OCS last year. It would not give details yesterday on how much of this was spent on core costs.
The £37m was given to v to run a set of programmes that implemented the recommendations of the Russell Commission, which aimed to encourage more young people to volunteer.
V said in January that it was planning to cut its workforce from 65 to 32 in response to OCS funding cuts.
Jayne Colquhoun, corporate affairs director at v, said the £1.25m would go towards the charity's running costs. It would aim to raise other funding through donations from the private sector and by bidding for government contracts.
She said many programmes - which include vcashpoint, a small grant programme for youth groups, vtalentyear, a full-time volunteering programme for young people, and vinvolved teams in local communities - would finish in the next few months.
"The OCS has shown a recognition of what we've achieved and a wish for us to continue to work in this space, so the money we are getting going forward is to build on what we've done," Colquhoun said.
"It is disappointing that we will no longer be able to support many of the partners we have been working with across the country, but we know that we have been successful in achieving our original objectives."