Modernisation Fund begins to take shape

More details of the work planned for the government’s ‘Real Help’ action plan for the hard-hit Third Sector have been revealed this week.

 

It has been announced that the Modernisation Fund, one element of the £42 million proposed programme, will be jointly managed by Third Sector infrastructure bodies Futurebuilders and Capacitybuilders.

 

Futurebuilders are planning to offer loans of between £30,000 and £500,000 to large third sector agencies with a turnover of £750,000 or more.  These cash injections are intended to support mergers between small and medium-sized third sector organisations and resolve financial and capacity issues.

 

Capacitybuilders will also be launching a funding programme in early summer 2009 that will offer smaller grants to groups with a turnover of less £1 million.  These grants are intended to encourage collaboration, merger or restructuring as a means of ensuring third sector groups continue to be sustainable and are able to weather the current economic storm.

 

For further information visit:

 

Futurebuilders:  http://www.futurebuilders-england.org.uk/

 

 

Capacitybuilders:  http://www.capacitybuilders.org.uk/

 

Source:  Office of the Third Sector

Voluntary and community sector unhappy as council cuts spiral

Yet more bleak news for the voluntary and community sector this week as local authorities are accused of slashing their Third Sector funding.

 

Fears are growing as local councils work to finalise their 2009/10 budgets before the end of the month that the voluntary and community sector could be marked as an “easy target” for cost-cutting, despite an increased demand on their services.

 

Some councils have already made devastating cuts.  Tonbridge and Malling Borough Council have pulled their annual voluntary and community sector grant scheme, worth £60,000, despite some local groups already submitting applications.  Similarly, Gloucester City Council has reduced its Third Sector spending by 5%, with little explanation being given.

 

The Local Government Association has pointed to an estimated £2.5 billion shortfall thanks to the recession and “the worst financial settlement for decades” from central government as the reason for such drastic measures and suggested even more “tough decisions” may have to be made.

 

Source: Third Sector

CAF survey has worrying results

The results of a Charities Aid Foundation (CAF) poll released this week have painted a worrying picture of the Third Sector as it struggles to beat the current economic crisis.

 

The survey questioned 322 voluntary organisations and charities about how they were coping with the biting recession:

 

·        41% have received less funding in the last three months than usual.

·        60% had looked to their savings to meet this shortfall.

·        Corporate income was flagged up as the worst hit source of funding and donations.

·        50% of organisations are expecting a continuing decline over the next twelve months.

 

As might be expected, over half (51%) of all charities and voluntary groups whose services help people to deal with the effects of the recession have seen a demand for their input increase over the last three months.  Such statistics serve to confirm the centrality and importance of the Third Sector in helping the country weather the current economic storm, unmistakably marking them as a “last safety net” for those in need.

 

For further information visit:

 

http://www.cafonline.org/

 

Source: Charities Aid Foundation

Local authorities warned not to shut down voluntary sector spending

In the uncertain wake of the Icelandic bank collapse, chief executive body Acevo and community sector partnership Community Alliance, are urging all local authorities to resist the temptation to ‘squeeze’ their spending on the voluntary sector.

 

Fearful of a knee-jerk reaction to the current economic crisis which could see local authorities cut back on their grants to the voluntary sector and slash their contracts with third sector organisations, Acevo chief executive, Stephen Bubb, has warned any cuts now could spell disaster.

 

He went on to suggest that instead of making small charities and voluntary and community groups the next victims of the economic crisis, local authorities need to recognise that it is now that the services of third sector organisations are needed the most.

 

Source: Acevo

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Government blanks Third Sector as credit crunch escalates…

 

Third sector groups have reacted with anger and disappointment this week after Chancellor Alistair Darling failed to respond to pleas to ensure the charity and voluntary sectors receive the same protection as local authorities and individuals during the current economic crisis.

 

In particular, the charity sector is calling for all deposits of charity money to be fully guaranteed in the wake of the Icelandic bank collapse – currently around £230 million belonging to nearly a hundred UK charities is at risk of being lost.  According to Charities Aid Foundation chief executive, John Low, refusing to do this could have “catastrophic” effects.

 

Source: Charities Aid Foundation

14.10.08 (1)

NAVCA call for info!

 

Third Sector advice and information body, NAVCA, are urging all local infrastructure organisations and community and voluntary groups to share their experiences of the current economic crisis.

 

NAVCA are keen to hear about any issues that are impacting on your local area and the workings of your local third sector organisations:

 

•Are organisations where you are from concerned about the loss of deposited funds due to the banking collapse?  Has your organisation, or an organisation you know, lost funds?

•Are you finding that the credit crunch and the economic crisis has led to increased pressure on your organisation – especially if you run an advice service, a helpline or provide counselling?

•As a local infrastructure organisation, what are you and your strategic partners doing in response to the current economic crisis?  For example, are you considering transferring funds from lower priority service providers to frontline organisations that are currently under pressure?

 

Whatever your story, NAVCA wants to hear from you! Share information on what’s happening in your local area by emailing Kevin Curley at kevin.curley@navca.org.uk.

 

For further information visit:

 

http://www.navca.org.uk/news/economy.htm

 

 

Source: National Association for Voluntary and Community Action