Dorset Youth Association is awarded over £100,000
Dorset Youth Association (DYA) has been given more than £100,000 of government funding.
The charity received £105,000 - a share of a £100m Transition Fund set up to help groups at a time when local councils are seeing their budgets cut.
In 2010, DYA lost 80% of taxpayer-funded income.
DYA said it provided services for more than 6,000 children and young people, 400 volunteer youth workers and over 200 youth clubs and groups in 2010.
Dave Thompson, director of the charity, which was founded in 1943, said: "Last year we generated £600,000 and we're down to £200,000 this year.
"We are fighting to keep our services going and are remaining positive.
"The Transition Fund will help give us the resources to be resilient, sustainable and able to deliver independent services for children and young people in Dorset."
He added: "If we haven't got the money we cut services or we close down."
Some of the charity's losses last year included funding for its volunteering programme for 16 to 25 year olds, a full-time post to provide support to rural communities looking to establish voluntary youth services, and money to provide training to its partners in the voluntary sector.