NAVCA fears lottery change will disadvantage local charities and community groups

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NAVCA fears plans to make lottery distributors cut administrative costs to five per cent will result in local charities and community groups getting less support. All lottery distributors have received a letter from the lottery minister John Penrose MP telling them to cut their total running costs, which includes research support to bidders and public involvement in grant decisions.

Kevin Curley, NAVCA's Chief Executive, met with John Penrose MP last year to express his concerns about this plan. At that meeting John Penrose MP agreed to commission some work on benchmarking national lottery administration costs in other countries. Kevin Curley is now calling for the results of this research to be made public.

Kevin Curley said

"Organisations need to spend money wisely but cutting administrative costs could harm local charities and community groups. A lot of what is being called administrative costs is actually support provided to applicants. Helping them bid for funding and helping them increase the impact of any grant they receive. Also as smaller grants are proportionately more expensive to administer, we could see there being fewer but larger grants which will disadvantage local communities.

"When I met with John Penrose MP, the Minister for Tourism and Heritage, he told me he would benchmark internationally to assess the appropriate level of administration costs. I'd like him to publish his findings."

7 January 2011

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