Liz Carnell, founder of Bullying Online, claimed the Department for Education and Skills (DfES) officials told her informally the decision was made because government money was being channelled to the Anti-Bullying Alliance, which launched in July (Children Now, 21-27 July).
The application for 15,000 was rejected by the DfES, even though she received 10,000 towards running costs last year.
She said: "I don't want to appear negative of the Anti-Bullying Alliance, but there must be money for smaller charities as they carry out important work.
"Although there was a big fanfare about the launch of the Anti-Bullying Alliance, people need to know that the money is not getting down to the organisations dealing with the sharp end."
A DfES spokeswoman said it was not usual policy for the department to fund the running costs of voluntary-sector organisations and that its priority for 2004/05 was to build capacity through the Anti-Bullying Alliance, which received 570,000 in July.
Gill Frances, director of children's development at NCB, and manager of the anti-bullying programme, said: "We are not a funding trust, this is not our role."
Last year more than 8,000 people contacted Bullying Online, the majority of whom didn't know where else to turn. Many had already turned to schools and local authorities and did not receive the help they needed, according to Carnell.
"Bullying Online is needed because of the failure of successive governments to introduce effective school bullying policies and it's poor thanks for our volunteers' work to be expected to get out the begging bowl to help some of the nation's most desperate children," she added.
As Children Now went to press, the Anti-Bullying Alliance was expected to announce the names of its nine newly appointed regional co-ordinators.
