The New Zealand body, Volunteer Service Abroad, says it is delighted the government has made a three-year funding commitment for the first time.
In the past funding has been on a yearly basis.
The government's allocation of just over 18 and a half million US dollars for the three-year period amounts to a slight increase on the current annual funding.
VSA's chief executive, Debbie Snelson, says it will allow VSA to confidently go ahead with plans to extend volunteering services in the Pacific, and to develop new assignments in partnership with New Zealand businesses and organisations.
VSA is celebrating its 50th anniversary and Ms Snelson says the funding grant is an endorsement of its work.
"We are really pleased because it does give recognition from our government that we are helping or playing a significant role in New Zealand's overseas development assistance. I think one of the challenges of being 50 is to make sure you are still relevant and I think this is a strong endorsement that the work that we are doing is still relevant."
