New areas recommended for funding include projects spreading the benefits of the 2012 Olympic Games across the whole of London, and projects promoting healthy eating and local heath care for young people, people with disabilities and for people from Black, Asian and minority ethnic groups.
These recommendations will now be discussed at the ALG's leaders' committee in October, where a final decision on the priority areas to be commissioned by the ALG will be made.
ALG leaders' committee sets the budget and policy framework for the grants programme, and will also look at the budgetary requirements that follow from the final priorities that are agreed in October.
Chairman of the ALG's grants committee, Paul McCannah, said: 'The voluntary sector plays an important role in supporting London's diverse community, and we take our responsibility to support it very seriously.
'We have a limited pot of money to allocate and have had to make some tough choices. However, we have sought to ensure we are recommending schemes giving people the chance of accessing job, training and educational opportunities; reduce social exclusion and poverty and promote equality.
'We are also recommending to the ALG leaders' committee that we should be funding new areas like supporting Childline to give support and advice to children in crisis across the capital.'
ALG chairman Merrick Cockell said: 'The grants executive has carefully and thoughtfully looked at 80 areas for potential funding and will be recommending their priorities to ALG Leaders' Committee. We will be making the final decision on what should be seen as priority areas when we meet in October.
'The budget will be decided on the basis of London-wide priorities and I am not expecting any major changes from recent spending levels.
'We want to ensure that our funding more effectively delivers services for London, and we will seek to work closely with the voluntary sector to achieve this especially as we move towards commissioning.'
Leaders' committee consists of the leaders of every London borough.
The budget for the ALG Grants Scheme must be approved by the ALG leaders' committee. When leaders' have considered the budget they will recommend it for consideration by boroughs in their respective council chambers.
Section 48(3) of the Local Government Act 1985 requires that at least two-thirds of the constituent councils in Greater London must approve the proposed budget. This means that when the committee decides on an overall level of expenditure it will recommend it to the London boroughs and the City of London and at least 22 of them must pass resolutions in their own councils to ratify. Once 22 constituent councils have given their approval, the overall level of expenditure and contributions to it are binding on all the constituent councils.