The fundraising appeal for St Margaret's Somerset Hospice in Yeovil took a giant step towards its target when Lin Whitfield, chair of the Community Fund's regional committee, revealed that £96,495 had been granted.
The total target of £4.5million looks even more a distinct possibility following the announcement.
A month ago, fundraiser Tim Chappell revealed that £4 million has been raised, with another £500,000 to be raised by October.
The hospice is nearing completion and will open in September this year.
Mr Chappell said this week: "This Community Fund grant is extremely timely and most welcome. It makes the fund raising target more achievable and helps in bringing this very specialist hospice care to the community."
Commenting on the decision, chair Whitfield said: "We particularly want to reach the most socially and economically disadvantaged parts of the region and people who are disadvantaged because of their age, disability or ethnic background.
"We are looking for bids that really will change people's lives. Groups applying to us have to work hard on their application and ensure that they present a good and viable case for a grant.
"They also have to fit within our funding priorities for the South West and demonstrate that a grant of National Lottery money from the Community Fund is really going to make a difference to the lives of the disadvantaged people in the region we are seeking to help and support."
l For further information on the Community Fund please contact Louise Bowers on 01392 849701.
The Community Fund shares out money raised by the National Lottery to charities and to voluntary and community groups. Out of every £1 spent on the National Lottery, the Community Fund gets 4.7 pence