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Funding Commission work to focus on three areas

Fundraising | Tania Mason | 1 Jul 2009

The Funding Commission has decided to focus its work investigating how to transform the funding environment for the sector, on three themes – capitalisation, stimulating giving, and local action.

The Commission has recently finished a 12-week consultation with civil society organisations and experts, at which a number of issues were raised: local funding, funding practice, public service delivery, capacity-building, social investment, giving, and volunteering.

After what the Commission - chaired by former Bank of England deputy governor Rachel Lomax (pictured) - described as some “robust discussion”, it decided to focus its work for the rest of the year on three key themes.

Capitalising the sector

The first of these, capitalising the sector, will look at how to increase capital to support the financial capability of civil society groups – including exploring the issues of asset transfer and reserves.

In its recent update report, the Commission said: “There is a lack of capital in many parts of the sector - it can be difficult to raise capital.

“There is also an array of difficult perception issues about sector organisations with sufficient capital or reserves, with some potential funders concerned that they are ‘hoarding’.

“Increased capital could assist the sector by enabling organisatins to plan beyond the short-term, cover staff shortages or purchase assets.”

Giving and local action

The Commission also plans to consider how to increase giving – by individuals, corporates, trusts and foundations – so as to boost the amount of unrestricted income available to sector groups.

And it will look at how small, local organisations can make better use of existing funding and how funding practices might be improved.

“It can be very difficult for small local organisations to access funding because of onerous application and reporting requirements, perceived economies of scale, and tendency for some funders to fund large ‘brand-name’ charities,” the Commission said.

“Our work will include how to respond to challenges faced by exsiting and emerging local groups, volunteering, infrastructure, and ways to make funding practices more appropriate to assist local organisations.”

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