The interim body that is continuing the work of the Children's Society in Wales will receive £200,000 funding from the Welsh Assembly.
Jane Hutt, minister for health and social services, said: "This will provide continuity of service and give the staff an opportunity to plan for the new charity they hope to launch from April 2003."
Following the commitment made by umbrella body Children in Wales last month to take on most of the Children's Society's work in the region, the two charities have now agreed to draw up a contract for the hand over.
Tros Gynall, which means "bridging process", will operate from August until April next year. The interim body will take over 14 of the society's 17 projects.
Christine Walby, chair of the Task Force established to explore ways of continuing the society's work, said: "I am very pleased that we have reached agreement in principle, which will protect valuable work to support children and families in Wales."