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New £130 million Grassroots Grants programme seeks local funders

31 January 2008

Local third sector funders across the country are today invited by the Community Development Foundation (CDF) to apply to become a local partner in delivering the £130million Grassroots Grants programme in their area.

Grassroots Grants will provide much-needed access to small grants for local community groups and organisations in England who will apply for funds from a local funder later this year. It will also help develop sustainable funding for them through an endowment match challenge.

The Community Development Foundation (CDF) is administering the programme nationally and the search has begun for local funders to ensure that the money gets to where it is needed in each community and to run the endowment match challenge.

The £130 million fund, which will run from 2008-2011 will be divided into two parts: an £80 million small grants fund for community organisations; and a groundbreaking £50 million endowments programme to enable local funders to generate additional donations on a matched basis and invest them in endowments, thereby building their capacity to provide long-term funding for frontline community organisations.

Phil Hope, Minister for the Third Sector, said:

“Sometimes it only takes a little money to make a massive difference. Grassroots Grants will give the groups which are tackling local issues the support they need to make a difference. It is a ground-breaking programme with £130million from central government to boost the smallest third sector organisations and the local funders that are often the best at reaching out to the most vulnerable people in our communities.

"I want grass roots organisations in our communities to thrive so that they can help with the individual challenges that face each local community. The Government recognises their work and is prepared to take action to support them. £130million will go a long way and help many groups but it is vital that we have local funders to help us deliver the money where it is needed and to raise and build endowments to sustain funding in the future.”  

Alison Seabrooke, Chief Executive of the Community Development Foundation said:

"The Grassroots Grants programme is a great opportunity for local funders to build not just the capacity of local community and voluntary groups in their area but their own.  CDF are delighted to be involved in the programme and look forward to receiving applications from local funders."

The Government first announced plans for the Grassroots Grants scheme in July in the Third Sector Review, which involved the widest ever consultation with the third sector through which small organisations told the Government that they were often unable to get the small amounts of money they needed to do their work.

Local funders interested in finding out more about the programme, the criteria to become a local partner, and the selection process can obtain more information from the CDF website.