Short answer is yes. When on the Town Council we as a committee often awarded grants to local community groups including charities. This was often cash grants and also grants that covered the use of facilities including the town hall.
Some things you should consider though are.
1. Is this a local charity/community group
2. What processes are in place to ensure that the grant you award is only spent on people within the parish
3. Does the charity/community group have a safe guarding policy
4. What other fund raising has the group done, what is the state of their finances.
There are many more things you would need to consider. You could ask neighrbouring PC's or Town Councils for their processes which you can adapt for your PC use. This is something we have done in the past.