Why grants are important for a healthy local VCS

NAVCA has published "Why grants are important for a healthy local VCS". Funded by the Finance Hub, this report explores the grant funding relationship between local government and the local voluntary and community sector as part of the local funding mix. It focuses on four local authorities that demonstrate good practice in grant making (Gloucester City Council, Newcastle City Council, Nottinghamshire County Council and Reading Borough Council. Based on interviews with NAVCA members and key local authority personnel, this report highlights current local thinking on grant funding issues, identifies some of the challenges in the local funding relationship, and explores the issues at stake for both sectors.

The report contains a checklist which local authorities can use to benchmark their activity and local infrastructure organisations and the local voluntary and community sector can use as a basis for a discussion with local authorities and local strategic partnerships.

NAVCA Chief Executive, Kevin Curley, says: "Local authorities are reviewing the way in which they fund the voluntary and community sector. In some areas this has meant a loss of grant funding, the most flexible form of funding. This is a real cause for concern. If grant funding is lost, it is particularly the work done by smaller and newer organisations that is affected. These organisations address needs of specific groups, build social capital, improve quality of life and build a sense of community in their area. However they may not have the capacity to meet service delivery specifications. Without grant funding the valuable work of these organisations risks being lost. Using this report, local authorities can benchmark their approach to grant funding as part of the local mix."

This publication complements "Sustaining grants" which is a campaign leaflet, published by ten leading voluntary sector agencies (including NAVCA) that argues for the importance of small grants schemes.