Arvon, which offers writing courses and retreats, plans to spend the Arts Council money making Lumb Bank - which has become one of Yorkshire's most iconic literary houses - more sustainable and accessible.
They also say they will introduce more strands of creative writing opportunities.
The grant is one of 16 made across the North of England and 66 in England.
Sarah Maxfield, Area Director North for Arts Council England, said: “Congratulations to the 16 cultural venues across the North that have been awarded funding through the Capital Investment Programme.
"Cultural organisations enhance our lives and the places where we live. It is fantastic that we have been able to support so many organisations to ensure their buildings are fit for the future which will enable artists and communities to create and enjoy some wonderful work and cultural activity for years to come.”
Arts Minister Lord Stephen Parkinson said: "Cultural organisations play a vital role in communities up and down the country - bringing people together, helping them tell and share their stories, and boosting both wellbeing and the economy.
"I want to make sure that everyone has access to the arts, no matter where they live. This funding will make sure that cherished institutions have the infrastructure they need to succeed for years to come."