The foundation, which is now funded by Kraft Food, gave the money to Keynsham Town Council, for the Time Out Club.
Council chair Gill Hellier welcomed the donation which will also be used to expand youth provision in the town.
US firm Kraft Foods was criticised when it closed the Somerdale plant after taking over Cadbury in February 2010.
A spokesman for Kraft said although it funds the foundation, the charitable body grants donations after submissions are made by prospective applicants.
"The foundation has made similar donations to the Time Out Club in the past and this latest is a demonstration of our desire to help the communities with which we have a link," he said.
He said the future of the site was a "separate" issue and there "was a firm commitment to engage a suitable and responsible developer who will take up the vision for Somerdale following plans laid out by ourselves and Banes".
"This includes an absolute commitment to retain The Fry Club and its facilities," he added.
The grant will run over two years and was awarded after an application was made by the town council.
Ms Helier said: "I see it as a continuation of their youth work in the town, they've been supporting us for a number of years.
"It's been £10,000 for the last four or five years at least and it does enable us as a town council to expand our youth service."
Kraft Foods came under fire when it closed the factory after earlier pledging to keep it open.
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Source and Photo: BBC
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