Station House, based on Lidget Lane, Thurnscoe, is an Ofsted-registered childcare nursery that offers a play group, after-school club and holiday club for more than 100 children.
D.H MacCabe Funeralcare, on nearby Houghton Road, is part of the Co-op group and involved with the Co-op Local Community Fund.
D.H MacCabe decided to donate to Station House and its chief executive, Charlotte Williams, said: “It’s a huge donation and we are very grateful. We plan to use the money to improve the play area for the children as we believe it is important to encourage children to play.
“I want to thank D.H MacCabe and the Co-op on behalf of all the children as this will make a difference to each and every single child.”