Community groups and charities in Wales are being invited to apply for grants of £2,000 each, raised by the retailer Asda from the sale of carrier bags.
The Community Foundation in Wales is distributing £360,000 raised by the supermarket chain through the single-use carrier bag charge in Wales, which levies a minimum 5p fee on each bag given out by retailers.
Charities and community groups have until 30 September to apply for funds for projects that are designed to have a sustainable impact on local needs in areas including children and young people, older people and community cohesion.
Liza Kellett, chief executive of the Community Foundation in Wales, said: "Local initiatives are the bedrock of civil society in Wales and we are delighted to be working with Asda to give them the recognition and help they deserve."
The carrier bag levy was introduced in October 2011. The Welsh government has recommended that funds raised by the charge should go to good causes, particularly environmental schemes, but is unable to compel retailers to do this.
Applications for the Asda funding can be made online here.