The Jack Petchey Foundation is offering £450,000 for youth charities to appoint paid interns.
The sum is more than double the amount the foundation provided for last year's pilot programme, which supported 10 one-year internships.
This year, 20 charities or charitable incorporated organisations in London or Essex will each be funded to pay one intern the London Living Wage of £10.55 an hour for a year.
Each intern will also receive a £1,000 personal training budget and access to a professional mentor.
This equates to an investment of about £23,000 per intern.
Trudy Kilcullen, chief executive of the foundation, said in a statement: "We support young people and youth organisations, so it makes sense to match talented young people with youth charities that have a real impact, rather than lose them to the corporate sector.
"By funding internships, mentoring and training, we will have a positive impact not only on the interns themselves, but also on the youth sector and on the young people the sector supports."
Organisations with at least four members of staff and turnovers of between £80,000 and £5m are eligible to apply from now until 21 June.
The programme will begin with a two-day residential conference in Chingford in the London borough of Waltham Forest on September 26 and 27.
Gemma Juma, operations director of the foundation, told Third Sector there was a "huge demand" for places last year.
"We feel interns should be paid, but we know the sector struggles to fund them," Juma said.
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