It is being billed as the largest funding collaboration seen in Canberra.

The initiative will be called the Canberra Foundations Collaborative. Each foundation is donating $350,000, creating a funding pool of $1.05 million.

All the foundations remain their own entity with their own goals but come together in this separate alliance.

Charities in Canberra and the region are encouraged to apply for projects that "improve health outcomes, engage socially disadvantaged or marginalised community members and address systemic disadvantages".

The grants will be $1000 to $25,000, to reach as many groups as possible. Some larger projects will also be funded.

John James Foundation CEO Joe Roff said by collaborating, the foundations could have a greater impact.

"We are sitting down together with a shared understanding that the greatest need in our community will be at the centre of our grant making decisions," he said.

Hands Across Canberra chair Diane Kargas Bray agreed.

"After a decade of funding efforts, we have come to learn that the most successful outcomes of community improvement are those that involve multiple parties working together for common goals," she said.

"We cannot address immediate disasters nor address long-term systems change without working together."

The Snow Foundation CEO Georgina Byron her family's foundation was happy to join forces with others.

"The Canberra region is at the heart of our family foundation, we support a variety of local organisations across a range of different causes with deep interest in preventing youth homelessness and domestic and family violence," she said.

"The community sector appreciated the reduced administration required with a coordinated and collective grant round offered in 2020, in response to COVID, so it makes sense to continue this way.

"Collaboration helps strengthen communities and we want to be part of that."

Grant applications are open until March 17. Details can be found at www.handsacrosscanberra.org.au, www.snowfoundation.org.au or www.jjf.org.au