This article investigates the relationship between public funding and the political activities of youth organisations in Europe. By analysing original data from a random sample of about 4500 youth organisations in nine countries generated through a content analysis of organisations’ websites, we examine the extent to which they engage in political activities. The analysis provides evidence for a negative impact of public funding on the engagement of youth organisations in political activities. This suggests that receiving financial resources from state institutions may lead to depoliticisation. Moreover, we also show how the effect of public funding is conditional upon the broader context, suggesting that the question of whether public funding encourages or discourages youth organisations to carry out political activities may be contingent on their broader economic and political environment.