ProjectScotland offers 16-30 year olds full-time structured volunteering opportunities with charities across Scotland. Around seven out of 10 ProjectScotland volunteers go on to work, education or training.
The Scottish Government funding will enable ProjectScotland to significantly expand its operations in rural areas taking the number of young Scots it supports in the north and south west of the country to 230 a year.
Paul Reddish, pictured, chief executive of ProjectScotland, said: "Both ProjectScotland and the Scottish Government share a key goal - to help Scotland's young people develop their skills and experience. We're delighted to do more in rural areas."