Elizabeth Finn Care has been chosen to take over the management of 38 Edinburgh trusts owning £12m worth of funds in a bid to make them more efficient.
The national poverty charity will take control of the trusts, some of which have been dormant for centuries, from the City of Edinburgh Council at the start of the new financial year in April.
It is hoped the new arrangement will bring more help and support to the 670 beneficiaries helped by the trusts. The charity also aims to increase the reach and focus of the funds.
The funds will be ring-fenced for the benefit of Edinburgh residents. The charity will set up an office in the city with a dedicated case worker.
The trusts involved in the transfer include a residential care home currently managed by Bield Housing Association on behalf of Trinity College Hospital Fund. The management of the facility will be unaffected by the move.
Matthew Sykes, chief executive of Elizabeth Finn Care, said:"The city of Edinburgh Council has shown considerable foresight in recognising the benefits a charity can bring to the city's residents in adminstering these funds."
"We want to see the money used in the best possible way," said Tim McKay, a city councillor. "By transferring management of these trusts to the charity, they are in effect consolidated and can be run more efficiently as one rather than 38."