Trained coordinators were currently based in Pāpāmoa, Te Puke, Rotorua, Taupō, Ōpōtiki, and Katikati.
The Grandparents Raising Grandchildren Charitable Trust chief executive Kate Bundle said many of the children concerned had experienced years of trauma, abuse and chaos.
She said caregiving grandparents provided the children with a sense of security and love that was vital for healthy development.
Support group coordinators help grandparents and caregivers obtain the correct income entitlements, as well as provide emergency food packages and social support.
Monthly meetings were held for grandparents to meet others in similar situations and a caregiver education programme is run to help them understand how to best care for their vulnerable grandchildren.
The trust was partially-government funded.
Bundle said she believed there was a real generational crisis looming so more resources into educating youth about making good choices was vital.
BayTrust chief executive Alastair Rhodes said strengthening whanau was a key funding priority area.
"Our vision aligns very clearly with the work that Grandparents Raising Grandchildren does and we're delighted to support them financially with this grant."