Big grant for small groups

Small local community groups can apply for a funding boost after the Government unveiled a new £80m Grassroots Grants scheme. The three-year programme, funded by the Office of the Third Sector and run by the Community Development Foundation, is open to any local community groups with annual income below £20,000. Groups can apply for awards of between £250 and £5,000 to fund community activities. The application process has been kept deliberately simple, and the grants will be distributed directly through local funders.

Phil Hope, Minister for the Third Sector, said: “Our communities are teeming with thousands of small groups and individuals who work tirelessly to tackle local problems…Grassroots Grants will put essential cash in the hands of small local voluntary groups without all the paperwork required for larger grants.”

The Government is also encouraging businesses of all sizes to invest in an endowment fund to prolong the scheme's life beyond 2011. It has pledged a further £50m in match funding for the scheme in last year's third sector review, and estimates that the fund could ultimately be worth up to £150m.

This endowment element – which is also open to individual investors – aims to ensure that that Grassroots Grants remain available for many years to come. In addition, as Gift Aid can be claimed on donations to a registered charity, a £1,000 match-funded contribution from a business would be worth £2,560 to the fund.

Stephen Hammersley, chief executive of the Community Foundation Network, said: "If we can repeat the success of previous pilots, then this £50m fund could help community foundations generate £1.5bn for grass-roots organisations within 20 years."

And Alison Seabrooke, Chief Executive of the Community Development Foundation said: “Grassroots Grants are exciting as they provide funding for community groups now and into the future. Grassroots Grants reach out to grassroots groups which may have never even considered applying for grant funding before. The endowment match challenge enables local funders to continue this funding over the long-term, giving small community groups a real future.

“Grassroots Grants are all about building a strong, independent third sector, and the Community Development Foundation is delighted to be administering such an innovative programme."