The organisation was awarded on Tuesday with the largest of all grants given out by engineering firm McKern Steel.

Kids Under Cover builds studio accommodation for homeless and at-risk young people aged 12 to 25 and has housed many young people in the Bendigo area.

Kids Under Cover chief executive Jo Swift said this was the third generous donation they had received from McKern Steel.

Ms Swift said the organisation aimed to provide a safe and comfortable living environment for young people and then fund their reintroduction into the education system.

"We're about igniting that passion or that dream in a young person and helping to facilitate that through the provision of a scholarship," she said.

Ms Swift said the teen years were a difficult time for many people.

"You're not quite an adult but no longer a child," she said.

Ms Swift said the housing program had great success in helping young people out of homelessness.

"They go from being homeless to actually moving out and becoming an independent member and contributor to society," she said.

"Most regional areas are really feeling the employment pinch, it's extremely difficult for kids."

Another grant recipient was the Ardoch Youth Foundation, which received $3000 to finance an emotional resilience project for 240 school students in Geelong.