Small firms are being offered the chance to support community projects through a new government scheme.
The Grassroots Grant programme has earmarked £130 million, which will benefit groups with an annual income of less than £20,000.
Small firms can get involved through an endowment match challenge, which will see the government double investments from businesses.
Phil Hope, minister for the third sector, said: "I urge local leaders and businesses to make an investment in the future of their community by contributing to the new endowment funds."
Money donated by firms will also be eligible for Gift Aid, meaning that it will stretch even further, he added.
According to the Federation of Small Business, SMEs are vital to local communities and offer consumers the chance to buy local produce as well as offering a personal service and creating jobs.
The body called on the government to do more to protect small firms because of this.
