Wolverhampton Forum was awarded £10,000 from the National Lottery Community Fund Coronavirus Community Support Fund to run the kitchen for the next six months.
The charity is based in the Elms Resource Centre in Whitmore Reans, and will use the funding to provide the soup kitchen facility within the centre and carry out deliveries to those that are shielding.
It aims to act as an outreach service to build community capacity, by delivering a range of initiatives and projects that promote a positive role for Muslim's in the social, educational and economical aspects of society.
Alvina Ali, forum general secretary, said: "Because of the pandemic we've all been faced with significant challenges. We want to continue going over and above to support partnerships working in the area.
"We formed the soup kitchen during the pandemic and we're hoping to continue. We've got about 70 homeless people we serve through the soup kitchen, people on low incomes and people suffering from medical conditions.
"It's a lifeline to some of the most vulnerable. We do it every Sunday from 4pm to 6pm.
"When Stuart Anderson heard abut us he wanted to come down and see how we're operating.
"It was launched on October 18 and since then we've seen an increase in demand. On Sunday we delivered 209 parcels, when we first set up it was 50.
"We can see families are having to think about eating or heating.
"This donation will run out in March so we're appealing for donations to carry this on."
Stuart Anderson MP said: "I have been amazed by the generosity and kindness from the people in our local community here in Wolverhampton throughout the pandemic.
"The WMF Covid Soup Kitchen in St Peter’s Ward is a fantastic example of this, with incredible people coming together to support the most vulnerable in the area.
"I was delighted to hear that WMF Soup Kitchen has been awarded funding to support their invaluable work, and I will support their endeavour however I can in the future."