YP Space MNC in Kempsey has been awarded a grant of $9233 as part of Australia Post's 2020 Community Grants program.
YP Space is a specialist youth homelessness service that provides support and accommodation to children and young people aged between 12 and 25.
Operations Manager Michelle Ackerman said the grant will be used to fund the YOUth Fit program at the Kempsey YP Space centre.
"The grant will be used to purchase gym equipment so we can create a safe gym for youth that are homeless," she said.
"When young people are homeless it puts a lot of pressure on them financially and having a gym to use will help them to build their physical health as well as being a benefit for their mental health.
"Many young people who are homeless are living on $32 a day, they have all the pressures of adulthood but are still children."
The YOUth Fit program will help to reduce barriers that young people in youth homelessness crisis accommodation face in accessing safe fitness activities. It will encourage children and young people to implement regular exercise to help reduce the impact of stress, anxiety and depression.
"Many young people have indicated to us that accessing a gym and working on their physical health is challenging and that's why we wanted to get this program up and running," Michelle said.
The gym equipment will be installed at YP Space next month.
YP Space is one of 79 community organisations across the country to receive a 2020 Australia Post Community Grant.
This year's grants program aligns with Australia Post's commitment to supporting mental health, funding projects that help improve connection and mental wellbeing in local communities.
More than $500,000 in total will be awarded to not-for-profit community organisations across Australia, with the majority of recipients in rural and regional areas.