Pawprint Dog Rescue has been awarded £4,000 a month by Rugby Animal Trust.
The trust rescues dogs from local pounds and places them in kennels before vaccinating, micro-chipping and re-homing them.
The money will be used to rent a block of kennels in Dunsmore for a year which will be named after Audrey Meikle, founder of the Rugby Animal Trust.
Fewer spaces are becoming available for dogs at council-provided kennels meaning more dogs are being put to sleep rather than being re-homed.
The staff at the trust aim to prevent this from happening at a faster rate. Founder and trustee of Pawprints, Anita Twigger, 45, said: “The money will make a great change.
“Before we only had around £1,000 a month from jumble sales and other fund-raising. We can rescue these dogs, look at prospective families and then get them re-homed.”