London Funders has more than 100 members, including Bridge House Trust, the Big Lottery Fund, NatWest, the Royal Bank of Scotland and the Association of London Government.
The body has set up project groups to address issues such as collaboration over the 2012 Olympics, reducing duplication of work for funders and easing bureaucracy for grant recipients.
The association's infrastructure development project group is working on an 'e-gateway' for voluntary organisations seeking funds. The group has also created a website at www.london funders.org.uk.
Sara Llewellin, the new chair of London Funders, said: "London Funders will offer massive opportunities to strengthen the funding and effectiveness of London's voluntary and community sector. London is a diverse and big city, which makes it all the more important to ensure that those bodies supporting voluntary and community groups can have a platform on which they can share experiences, best practices and ideas."