Funding Guide

Since the recession became a real and active threat; the Government have set up various funds in order to help third sector organisations survive - a recession support package. But where has all the money been going? Third Sector have compiled a handy guide to the distribution of funds throughout the sector and what is next for the funds.

Modernisation Fund

What is it?

A £16.5m Office of the Third Sector fund for organisations planning to merge, collaborate or adapt because of the recession. Large voluntary organisations can apply for interest-free loans of £30,000 to £50,000 from investment fund Futurebuilders. Smaller not-for-profits can bid for bursaries and grants worth £1,000 and £10,000 respectively from non-departmental body Capacity Builders.

Progress so far

Futurebuilders issued its first loans last week: £120,000 to South Somerset Mind and £60,000 to the City of London Migraine Clinic. Of 320 inquiries so far, 89 are under evaluation. Capacitybuilders is to give 1,000 as yet unnamed organisations vouchers for £1,000-worth of recession advice from local delivery partners, which are mainly councils for voluntary service.

What next?

Futurebuilders expects to make its next investments this week and to have awarded all its £9.5m by March. Barclays has pledged the same amount in matched funding. Capacitybuilders will award 500 £10,000 grants this autumn to organisations that received vouchers and want to take concrete steps towards collaboration or merger.

Targeted Support Fund

What is it?

The £15m grants fund provides help with revenue costs to third sector organisations with annual incomes of between £30,000 and £250,000 that have seen demand for their services rise during the recession. They must operate in the 50 most deprived top-tier local authority areas in England and provide either advice, employment support or health and wellbeing services. Grants range from £10,000 to £40,000.

Progress so far

The Community Development Foundation, a charity sponsored by the Communities and Local Government department, was chosen to deliver the programme because it already has a network of local partners established to administer the Grassroots Grants programme. The 50 areas to be targeted were announced in April. Applications opened at the end of April and closed at the end of June.

What next?

The CDF's local partners are assessing applications. No figures are available on the number of applications, but a spokeswoman said there had been "a lot of interest". Offers of grants will be sent on 17 August and grants should be received by 1 September. Grants must be spent by 31 March 2010 and there are no plans for further rounds.

Volunteer Brokerage

What is it?

An £8m scheme to match 34,000 jobseekers in England and a further 6,000 in Scotland, Wales and Northern Ireland with volunteering placements by April 2011. Charities BTCV, Volunteering England, CSV and v are running the scheme in England, acting as 'brokers' by matching jobseekers with placements. Elsewhere, the scheme is being run through local volunteer centres.

Progress so far

The scheme is up and running across the UK and brokers in some areas are successfully matching jobseekers with placements. Other regions have struggled because jobseekers turn down volunteering placements. Third Sector reported last week that the scheme was failing to meet its monthly targets. A DWP spokeswoman said it could not reveal how much had been spent on the scheme so far.

What next?

The Department for Work and Pensions will hold a meeting with conservation charity BTCV, the lead partner running the scheme, on 6 August. BTCV is also expected to produce a report next month on the project's progress so far. Tom Flood, chief executive of the charity, told Third Sector he was determined to make the brokerage system work so that a Conservative government, if elected, would not abolish it.

Month by month

February: Real Help for Communities launched at the Office of the Third Sector. Total of £42.5m is not new money, but "new to the sector", says then minister Kevin Brennan.

April: Contracts for volunteering brokerage awarded by the Department for Work and Pensions. Sum available comes down from £10m to £8m. Applications open for phase one of Futurebuilders strand of Modernisation Fund and for Targeted Support Fund.

May: Brokerage scheme is launched amid concerns it has been rushed through. OTS begins nine free regional roadshows on the action plan.

June: Phase one of Capacitybuilders' strand of the Modernisation Fund opens. First loans made by Futurebuilders strand. Applications close for Targeted Support Fund.

July: Applications close for phase one of the Capacitybuilders strand of the Modernisation Fund. 1,000 applicants selected by now.

August: Grants from Targeted Support Fund to be decided.

September: Targeted Support Fund grants to be distributed. Applications to open for phase two grants of Capacitybuilders strand of Modernisation Fund.

Paul Jump
Third Sector
www.thirdsector.co.uk