Gay rights campaigners have criticised the awarding of national lottery grants to British faith groups with links to anti-gay literature online.

Grants have regularly been handed to a range of Christian, Muslim, Jewish and other religious groups since lottery funding began almost 20 years ago, mainly to finance community projects working with young or vulnerable people.

Research by the Guardian shows, however, that several faith groups which have received money in recent years have links to controversial material. These groups include the Christ Apostolic church in Luton, run by Pastor Stephen Oluwasola, which won a £10,000 lottery grant to set up an after-school club for students to play music together in 2007.

Oluwasola says the publicly funded club was open to any children. However, campaigners have raised concern over a Sunday school lesson plan, published by the church's Nigerian parent organisation, which has a clear message for dealing with gay people: "Eschew them!"

"Same-sex relationships are foreign to God's Law," the lesson plan says. "Anyone who practises lesbianism, homosexuality, gay-marriage etc is a beast! Don't do it!" It adds: "At the end of this lesson, the people of God should be showing deeper hatred for sexual sins."

Oluwasola is open about his church's views but insists religious beliefs are kept separate from community projects, and that gay people would have been welcomed at the after-school club, which is no longer running. He says: "All the members of Christ Apostolic church, we share the same belief … Our church doesn't support the idea of homosexuality because our belief is that it is not biblical."

Gay campaign groups want a funding review and more oversight, and say groups should not get public money if they do not uphold equal values.

A spokesman for the Big Lottery Fund defended the awards, which were relatively small, he said, and in some cases were made a number of years before controversial postings were made online. Some of the groups are large multinational churches and the material was posted outside the UK, though campaigners say they illustrate what some people inside those groups believe.

At another church, £9,520 was awarded by the Big Lottery Fund (BIG) two years ago for a project helping young people find voluntary work. The Apostles Revelation Society branch in north London has published a series of sexist and misogynistic articles online, including one which says: "A woman should fully co-operate in sexual intercourse with the man. A wife should be tolerant, obedient and should abide by the instructions of the man."

Another piece published by the church appears to partially blame children for paedophilia. It says: "Methods of dressing which are almost next to sheer nakedness have hyperbolically increased the incidence of rape and vilification of otherwise innocent children." A third article adds: "Nobody appreciates children born with ill health, criminals, disobedient and other disabilities."

Fergus Kumi, a church trustee, said the lottery grant was spent appropriately – not for religious purposes.

In another case, seven grants for facilities and refurbishment, totalling more than £450,000, went to branches of the New Testament Church of God in Wolverhampton, Tower Hamlets and elsewhere in the UK, including six grants between 2004 and 2006. The groups are tied to the Church of God in Tennessee, which says it "condemns homosexuality as a fleshly behaviour and sinful practice", and states its "opposition to the rising trend toward legitimising homosexual unions".

The church is a multi-million pound organisation; the UK branch has funds of almost £29m and receives more than £7m of voluntary income each year. The church has not responded to approaches for comment. There is no suggestion that the New Testament Church of God used its funding inappropriately.

Lottery distributors' rules make a distinction between religious activities and the community projects churches run. They say: "The project outcomes are key, rather than the non-project activities and ethos of the organisation. Crucially, the activities undertaken with lottery money cannot promote religion or belief."

Chris Bryant, the Labour MP for Rhondda, said lottery distributors had crossed a line by supporting faith groups with extremist views. He said: "I don't object to religious charities being supported by the lottery, as many churches and religions do a great deal for society. But most people would be scandalised to hear that lottery money is being used by groups that peddle fundamentalist prejudice and bigotry."

The human rights campaigner Peter Tatchell has called for an urgent review of lottery grant distribution. He said: "No lottery money should be given, directly or indirectly, to organisations that promote prejudice and discriminatory values. In a free society, extremist churches are entitled to believe that homosexuality is wrong, but they should not receive money that comes from the public and is intended to support good causes. Anti-gay bigotry is not a good cause.

"The government and national lottery need to establish tighter controls on grants, to ensure that homophobic and other hate-mongering organisations do not get funding."

The Lesbian and Gay Foundation, a campaign group, said: "It is very concerning if organisations have been able to access funding if they openly discriminate against LGB people. It is important that faith groups can continue to access funding to undertake vital work within their communities. However, it is equally important that when applying for lottery funding, such groups believe and abide by equality values."

Mark McGann, a senior director at BIG, admitted that not all grant applicants were vetted thoroughly. He said: "We give out thousands of grants each year and it would not be cost-effective or proportionate to carry out in-depth background checks on every one of them. Everything we do is risk-based and proportionate – assessment can be fairly light-touch if it's an Awards For All grant, which are small awards for community groups."

He said some of the homophobic material only appeared online after the grants were awarded so, in some cases, there may have been no way of knowing about the beliefs. "There is a balance between equalities considerations and being able to reach different cultural and religious groups. We have to be culturally sensitive, albeit not to the point where we're throwing our principles out of the window."

BIG is responsible for distributing 40% of the lottery's good cause funds, with national arts councils, the Heritage Fund and others handing out the remainder. Since funding began in 1995, more than 400,000 grants have been awarded, worth more than £25bn.

The Department for Culture, Media and Sport, which oversees the distributors, refused to comment on any aspect of lottery funding. A spokesman said: "The distribution of lottery funding for good causes is a matter for lottery distributors, who make their decisions independent of government."

The government's approach to faith groups has been one of inclusion – seeing them as key players in the "big society". Lady Warsi, minister for faith and communities, told a meeting in parliament in February that "faith reaches areas of need that government cannot". She said: "Too often we overlook the practical manifestation of faith. The mother and toddlers' groups, the school assemblies, the fundraiser days, the 98m hours churchgoers spend volunteering each year … Working together, using the networks of faith communities, we can make a big difference."

Hilary Benn, the shadow minister for communities and local government, defended the principle of funding faith groups with lottery grants even when they hold objectionable views. He said: "Faith groups make a really important contribution to providing services locally in our society. When you add it all in together, I think we're much richer as a society.

"But in allocating public funding you have to recognise the distinction between a group's services provided to people generally, and its work as a religious organisation. If you are providing services to the community then society has the right to hold to fundamental principles like equal treatment.

"Society strives to uphold the principle of freedom of religion but, at the same time, to draw on the benefits people can bring to society because they're prepared to put time and effort into providing services."

Over the past 15 years, Lottery distributors have awarded at least 139 grants worth more than £3.1m to evangelical, Pentecostal and conservative Christian groups.