2009 Budget is mixed bag for Third Sector

The Third Sector has given the unveiling of Alistair Darling’s 2009 Budget mixed reviews this week.

 

The announcement of a £20 million hardship fund for charitable organisations hard-hit by the recession was warmly welcomed as a key supplement to the £42.5 million action plan for the sector launched in February.  An additional £18.75 million specifically for credit unions to offer more affordable loans to people on low incomes and the promise of a match-funding scheme which will create 150,000 new jobs for young unemployed people were also well received.  John Low, chief executive of the Charities Aid Foundation (CAF), claimed these additions to the budget signalled a “recognition right at the heart of government” that charities, and the Third Sector as a whole, really are at the front line of support during the recession.

 

Frustration and anger was also felt amongst Third Sector groups, however.  Darling’s failure to commit to the setting up of a new Social Investment Bank was viewed by many as a missed opportunity and the government’s ‘wait and see’ approach to this important issue was widely disparaged. Failure to do anything to combat charity problems with VAT also provoked anger and highlighted for many what Nick Hurd termed the government’s “regrettable tokenism” in relation to the sector. 

 

Source: Third Sector

Government shares out recession cash via Targeted Support Fund

It was announced last week that Birmingham, Liverpool, Durham and Hull will be amongst the beneficiaries of the Government’s £15.5 million Targeted Support Fund.

 

The Fund, intended to help third sector organisations combat the hard-hitting effects of the recession, has been shared out between 50 areas in England, chosen specifically because they are most at risk of increased deprivation.

 

The one-year programme will be administered by the Community Development Foundation but applications will be assessed at a local level by local funders.  Grants will pin-point ‘recession-focused’ areas of work, including:

 

• Housing, debt, finance and legal problems.
• Employment training.
• Services related to mental health, relationship breakdown, counselling, domestic violence and substance misuse.

 

It is anticipated the application process will open at the end of April or the beginning of May.

 

Source: Office of the Third Sector

Small charities to cash in!

This week Cabinet Minister Nick Byrne announced a funding pot of more than £750,000 for small local charities and voluntary organisations that work with vulnerable members of society and carry out campaigning initiatives. 

 

The programme, which will be administered by third sector infrastructure body Capacitybuilders, will provide grants to up to 30 organisations over a period of two years.

 

The aim of this cash injection is to encourage small, locally-based groups that represent the most vulnerable people in society to make their voices heard.  Capacitybuilders are particularly keen to hear from organisations that work with people with disabilities and disadvantaged young people and have an innovative approach.

 

It is anticipated the grants programme will open to applications later this Spring.

 

For further information visit:

 

http://capacitybuilders.org.uk/

 

 

Source: Third Sector

 

Charities to get share of Empowerment Fund

21 charities have been chosen to receive a share of the Communities and Local Government £9.25 million Empowerment Fund.

 

The programme, which provides three year grants of between £250,000 and £500,000, has been designed to specifically target third sector groups that work in community development, social media, social entrepreneurship and community involvement and has received more than 150 applications for funding since its launch in July 2008.

 

Amongst the successful groups that will receive a share of the cash are Media Trust, an organisation that works with the media industry to build effective communications for the charity and voluntary sectors, the Sheila McKechnie Foundation, a charity that works to tackle injustice and Social Firms UK, the national support agency for Social Firm development.

 

The Fund has not been without controversy, however.  In September 2008, the CLG were forced to remove eligibility criteria that required applicants to the scheme to have an annual income of at least £400,000, after receiving an angry petition from excluded third sector groups.

 

Source: Communities and Local Government

Mergers and collaboration the way forward for the Third Sector

Charities and voluntary and community groups hard-hit by the recession must think about merging or collaborating with other organisations, according to Charity Commission chief executive, Andrew Hind.

 

Despite most Third Sector groups currently struggling to weather the economic storm, a recent Charity Commission report has found that only 3% have considered teaming up with other similar charitable organisations.

 

In response to these worrying findings, the Charity Commission is proposing to offer merger advice and resources in the coming months.

 

The Commission chief executive, Andrew Hind, has also urged charities and voluntary groups to take more important measures to ensure their survival.  He claimed making the best use of their existing resources and installing sound governance procedures were essential steps for any charitable organisation in the current climate.  He also suggested cutting away any secondary activity not entirely relevant to charitable pursuits and encouraged groups to think about the positive opportunities a recession might throw up, such as more volunteers.

 

Source: Charity Commission