Public Health Minister Michael Matheson said the Scottish Government has given Sands Lothians a one-off grant.
It emerged last month that, for 45 years, the ashes of children who were stillborn or days old were buried in a garden of remembrance at the council-owned Mortonhall Crematorium in Edinburgh.
Parents were led to believe there would be nothing to scatter and were therefore not offered the chance to have their children's remains returned to them.
The practice is said to have ended in 2011.
The scandal was discovered by Sands Lothians, which supports families who have experienced the death of a baby through miscarriage, stillbirth or soon after birth.
Dorothy Maitland, of Sands, said the grant would aid the charity in providing support to parents, around 150 of whom have contacted the council worried over what has happened to their infants' remains, as well as carrying out separate care duties.
She said: "It is very welcome.
"We are working very hard on Mortonhall and it is taking up a lot of time, while there's also other areas of our job that we are having to do as well."
Dame Elish Angiolini, a former Lord Advocate for Scotland, has been appointed by Edinburgh City Council to lead an independent inquiry into the practices at the crematorium.
However, campaigners also want a public inquiry and an online petition for a wider review has now attracted around 3500 signatures.
Responding to a question from Labour MSP Kezia Dugdale at Holyrood, Mr Matheson said that, following a meeting, he asked his officials to explore additional financial support for Sands.
He said: "As a result the Scottish Government has been able to provide the charity with some one-off funding to support their work with those affected by the former practices at Mortonhall Crematorium."
"The Scottish Government has also made an offer to Edinburgh City Council to provide any support and information to the independent inquiry that may be helpful.
"With regards to the wider issue around guidance and regulations for crematoriums, we have already given a commitment to look at these issues in the coming year with a view to bringing forward further legislation, possibly into 2014, in order to update some of the laws in this area."
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