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The Australian Turf Club Foundation has granted a second round of funds to NSW racing participants and community organisations.

A total of $128,651 from on course fundraising, saddle cloth auctions and sales of merchandise at major racing carnivals will be distributed.

In its first 12 months of operation the ATC Foundation has raised almost $200,000 for racing industry participants and registered charitable organisations.

The latest round of grants for the NSW racing industry will include $30,000 go to the Tamworth Jockey Club for drought relief; $20,000 to the National Jockeys Trust; and $20,000 to the Australian Racing Christian Chaplaincy.

The $30,000 grant to the Tamworth Jockey Club will be used to purchase hay bales for trainers and racing industry participants affected by drought across northern NSW.

Sydney-based organisations and charities receiving grants include $20,000 for The Shepherd Centre (school for children with hearing loss); $13,651 for the Canterbury Little Athletics Centre for sports equipment; $10,000 to the Rainbow Club Australia for children with special needs; $10,000 for the Youth Insearch Australian Foundation for youth at risk; and $5000 to the Jon Berne School aiding child development.

Australian Turf Club Foundation chairman Phil Morley said the ATC was proud to help racing and local communities across NSW.

"We will continue to invite expressions of interest from NSW thoroughbred racing clubs and participants and charitable organisations for the allocation of future funds raised by our customers and racing fans," Morley said.