The Treasury announced £188 million for the sector this week while closing the door firmly on any change of stance on VAT.
The move came as part of the department's cross-cutting review, published this week.
The £125 million Futurebuilders investment fund announced by the Chancellor earlier this year has now been boosted to £188 million. But it was not clear as Third Sector went to press whether the £63 million was new money.
The money, which will be channelled through the Active Community Unit, is designed to remove barriers to voluntary- and community-sector involvement in the declining of public services.
A working party of umbrella bodies and large service providers will decide how to spend the money. All charities are invited to an NCVO meeting on 7 October.