Westminster Council will give away computer equipment worth about £200,000 to charities every year from next month.
The local authority said it had to upgrade its computers every three or four years because they become too old to run important programs and too expensive to maintain.
Rather than send 250 computers a year to the dump or for recycling, the council decided the machines would be put to better use going to volunteer groups or individuals.
The systems will be security checked and cleansed of data before being loaded with charity-licensed software. Successful applicants will each receive about £700 worth of computer equipment and software.
Melvyn Caplan, cabinet member for finance at the council, said: "Having a computer has become an essential part of any successful organisation, but at a cost of several hundred pounds a new computer can seem like an expensive luxury to many volunteer groups. I'm delighted that hundreds of our redundant computers will now be put to good use."
In order to apply, a group must be classed as a charity or not-for-profit organisation and be able to show how their service or activity meets the needs of people living, working or studying in Westminster.
Charities can email firstname.lastname@example.org or call Westminster Council on 020 7641 3382 for details.