Awards for All England has raised the ceiling on its small grant programme from £5,000 to £10,000 and will make the money available in early 2006.
The rise comes about because of an increased demand for grants of more than £5,000 that do not fit into larger awards programmes.
Awards for All plans to integrate itself into the Big Lottery Fund's regional structures in order to better handle the demand from June this year.
Mike Wilkins, director of Awards for All England, said: "The increase to an upper ceiling of £10,000 is great news for those applying for smaller amounts of lottery funds. We will ensure that the programme remains accessible and maintains its rapid turnaround."