Webster's Market and Cafe, Little Bird Cafe and Maggie and Kate in Buninyong are participating in charitable organisation StreetSmart's CafeSmart campaign.

The cafes will donate $1 from every coffee sold on Friday to the campaign.

StreetSmart distributes the funds through grants to smaller homelessness support organisations working on projects in communities as close to where the funds are raised as possible.

Webster's Market and Cafe owner Jane Meneses Lopez said Webster's had been involved in CafeSmart since 2016, but fundraising this year was particular important.

"This year now more than ever there is a lot more people in need of that sort of assistance," she said.

"This is an easy thing for us to do and people can contribute by just purchasing a coffee."

StreetSmart has supported seven Ballarat organisations in past years, including $21,700 in grants to Eureka Mums since 2014 and $28,100 to WRISC Family Violence Services since 2010.

The organisation has also provided grants to Child and Family Services (Cafs), Berry Street, Uniting, Soup Bus and the Lighthouse Foundation in the past.

StreetSmart chief executive Adam Robinson said small grants could have a big impact for small grassroots community organisations like Eureka Mums.

"It would would take a lot of effort to actually raise one or two thousand dollars themselves," he said.

"For us an organisation like Eureka Mums that is really grassroots and is run a lot of the time by volunteers, we feel like we get really good bang for our buck in making a small grant."

Little Bird Cafe has been participating in CafeSmart since 2015.

Owner Dan Miceli said he would personally match the amount raised through drink sales on Friday.

"The fact the fundraising goes back to the local community is why we continue to do it," he said.

"It is quite rewarding knowing it does go back to our community."

Maggie and Kate owner Katrine Taylor said she was keen to be involved in CafeSmart again after hearing about the work StreetSmart and the cafe's coffee provider All Press had been doing to provide meals to people in need.

"All Press donate some beans for the day. Everyone is giving a bit and it all adds up to a lot in the end, which is great," she said.

"Hopefully we will sell lots of coffee and be able to donate a fair bit back."

Mr Robinson said the charity targeted grants to a range of organisations that cover a diverse response to homelessness, including family violence, disadvantaged families and youth.

"We do love Eureka Mums because they hit a lot of different people in different circumstances through their support and are working with a number of different organisations," he said.

"Some of the clients from Uniting may end up coming to Eureka Mums as well."

Mr Robinson said larger organisations with accommodation like Uniting have benefited from StreetSmart's SleepSafe program, which provides linen and towels through a partnership with Sheridan.

"I encourage people to get out but if they can't make it to a cafe there are ways to support online this year as well. Chip in a small amount and it will stay local," he said.