The Wales Council for Voluntary Action is to co-manage a £30m recycling scheme for community enterprises, launched by the Welsh Assembly Government last week.
The umbrella body will administer the Strategic Recyling Scheme, and its grants panel will decide which enterprises receive funding.
The money will go to recycling and waste reuse and minimisation services throughout Wales, with grants from £500,000 to £1.5m.
The initiative is intended to make sure that every household has access to kerb-side recycling collections.
In mainly urban areas such as Newport, one social enterprise will handle the collections, but in rural Powys it will be split between 20 or 30 smaller groups.
Community enterprises and public sector organisations can apply, but they must demonstrate they are in "active partnership" with statutory or voluntary sector bodies.