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."
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