New funds for Social Investment Bank?

According to NCVO chief executive, Stuart Etherington, speaking this week at the AGM of social lender, Charity Bank, money repaid to the Futurebuilders England loan fund should be ploughed back into the voluntary and charity sector through the establishment of a social investment bank.

The idea of a social investment bank is not a new topic for the third sector, with the government already previously stating that funding for such a facility would be sourced from the Dormant Bank and Building Societies Accounts Act and targeted towards tackling issues such as youth work and social inclusion.

But the government’s tentative, ‘wait and see’ attitude to this eagerly anticipated initiative, demonstrated by a lack lustre pledge as part of the 2009 budget to carry out a consultation into how the social investment bank might operate if established, has angered third sector members, many of whom believe the bank should be formed as quickly as possible if it is to help those most in need during the current economic climate. 

Etherington claims the sector and the government should look for funding for the bank elsewhere and flagged up the Futurebuilders loan fund as an effective way of making savings and helping third sector organisations without “having to use new money”.  He also called for a substantial £50 million government investment in the bank, in order to attract other sources of capital.

Source: Third Sector

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

Mixed reviews on dormant funds programme

The Dormant Bank and Building Society Accounts Act – a scheme intended to allow the transfer of funds from dormant UK bank accounts to good causes in the Third Sector – has this week received royal assent and has been given the go-ahead.

 

The programme, originally anticipated to be likely to distribute up to £400 million to youth centres, financial inclusion services and a social investment bank, has already been attracting the attention of experts who claim the value of dormant UK funds and, therefore, the funding pot, could actually be closer to £4 billion.

 

Whilst all this seems promising enough, some members of the Third Sector are unhappy with the terms and priorities of the Act.  The Government intends to distribute funding through the Big Lottery Fund and has picked out youth and financial inclusion services as priorities.  The Third Sector, however, believes the social investment bank is in more pressing need of assets and will be a more useful tool in the long run.  In addition, the fact that the Government has only made the scheme voluntary has also angered those working within the sector, as many are doubtful that UK banks will be keen to get involved.

 

Source: Third Sector

 

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Social Investment Bank gives sector hope…

 

Third Sector Minister Phil Hope, speaking last week at the Labour Party Conference in Manchester, gave hope to the voluntary and community sector by confirming that the Social Investment Bank initiative will go ahead.

 

The Bank, intended to channel dormant bank account funds into voluntary sector organisations and social enterprises, has been long awaited and much talked-about. It had been feared that other government priorities, such as financial inclusion programmes, would take precedent over the bank and secure the funding instead.

 

According to Hope, tendering will begin as soon as the relevant legislation has been passed.

 

Source: Regeneration and Renewal