These will include a web site and training packs. Muhammad Khan, board member of the foundation, said: "We want to develop expertise, training and literature for anyone who works with young Muslims.
"The funding will help us to deliver support to projects and organisations across the board that work with young Muslims."
The foundation was set up last September and is hosted by The National Youth Agency in Leicester. The three-year funding will also go towards helping young Muslims to address the issues they face.
"We want to challenge perceptions of Muslim young people," said Khan. "The key needs for young Muslims are to ensure that they are comfortable with who they are and able to access resources and entitlements. We want to help Muslim youth connect with policymakers and get representation."
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