The projects could be anything from running community radio stations to laying on local football tournaments.
A total of £870,000 is available in three lots until July 2008. Up to 400 projects are expected to receive cash under the scheme.
In the first round, 72 projects shared £130,000 to operate community projects. Of the £1m total funding, half has been provided by bank HSBC.
Terry Ryall, chief executive of v, said the project would open up a new generation of volunteers.
“We are taking a holistic approach with the young people,” she said. “This particular opportunity is targeted at young people who do not necessarily already belong to any kind of ongoing youth group but want to make a difference themselves.”
Joanna Theodoulou from v20, v’s youth advisory board, which developed vcashpoint, said the scheme gave young people the chance to make a difference to their communities while learning new skills.