Volunteering charity v will ask the Office for Civil Society to provide transitional funding that would help it become less reliant on statutory income, Third Sector has learnt.
Terry Ryall, chief executive of v, will meet charities minister Nick Hurd in the next 10 days to discuss future funding for the body. It receives about 80 per cent of its income from the government, which is due to provide £39m in the year to March 2011. It received £38.1m in 2009/10.
It is understood that v will seek a new government grant for a short time after next March in order to continue its work until it finds more money from other sources.
The charity is also considering bidding to run some welfare-to-work contracts for the Department for Work and Pensions.
One of its activities is youth volunteering programmes that help young people into employment or training.
A spokesman for the charity said: "We're optimistic about the future. We have a huge contribution to make to help the government achieve its aims as part of its plans for the big society agenda, and we are discussing with the government the part we can play."
He said the charity already made use of some private funding and would continue looking for "innovative partnerships" to help it carry on its work.
Earlier this month, Hurd said v's government funding was under review (22 June, page 3). At the time, a spokesman for the OCS added that all of the department's spending was potentially under review because of the need to cut the national deficit.