In a joint statement, they said: "Both organisations play an important role in connecting people, organisations and community groups to local life in Kensington and Chelsea and already work in partnership to achieve their goals.
"Building on this as one merged organisation, they can maximise their impact to enable greater local participation and action."
Annual accounts submitted to the Charity Commission show that KCSC’s income fell by more than a third between 2011 and 2012 – dropping to £440,000 in 2012 from £691,000 in 2011. VCKC had an annual income of £411,000 in 2012, up from £345,000 in 2011.
Kirsty Palmer, chief executive of VCKC, said that no date had been set for the merger, but the organisations were keen for it to happen swiftly.
VCKC employs nine people and KCSC has 11 members of staff. Palmer is leaving her post at the end of the month to set up an undergraduate volunteering programme at London South Bank University.
Palmer said she was unable to say whether there would be any redundancies as a result of the merger.
She said the new organisation would be relaunched under a different name but the branding was still under consideration.
Mary Gardiner, chief executive of KCSC, said: "We just think we’ll work better together."