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Transition fund aimed at charities with income of £50k to £10m

Transition fund aimed at charities with income of £50k to £10m
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Transition fund aimed at charities with income of £50k to £10m4

Finance | Tania Mason | 20 Oct 2010

The £100m transition fund announced today by the government will be targeted at service-delivery organisations that have low levels of reserves and high dependence on public funding streams that are particularly vulnerable to budget cuts, civil society minister Nick Hurd said today.

In an interview with Civil Society immediately after the Chancellor delivered the spending review, Hurd said he would be consulting informally with the sector about the eligibility for the fund, but it was likely to be available to organisations with income of between £50,000 and £10m.

Some £10m of the funding will be disbursed in this financial year with the remaining £90m given out in 2011/12.

The Office for Civil Society will not be distributing the money itself and has already drawn up a shortlist of preferred suppliers to deliver the fund. The distributor will be appointed imminently, reflecting the urgency of the task. Once it is appointed, the "robust eligibility criteria" will be devised after conversations with sector representatives.

Hurd said it was a challenge to secure the funding in light of the parlous state of the public finances, but “we were determined to try and make the case and we won it, and were pleased to have support for it from a high level”.

Gill O'Connell
manager
Relationship Counselling Highland
10 Feb 2011

what about the charities which have an income of less than £50k - they are the ones offering real value for money and have been hardest hit

Gill

Paul O'Donnell
Finance Director
Age Concern Leicestershire and Rutland
17 Dec 2010

Will these payments fall within the scope of VAT?

Peter Munro
Director
Scottish Borders Social Enterprise Chamber
22 Oct 2010

It's fine to have income criteria but the proposed minimum of £50,000 will deny access to many newer service-delivery organisations and many organisations with lower turnover.

I realise that the high limits are probably so that the demand on the distributor isn't too great; however, the minimum income criterion isn't likely to benefit the organisations with the greatest need; those that have a one or two customers and have the potential to grow larger but need support in the transition.

Isn't that an important part of what the Office for Civil Society is seeking to achieve ?

Amanda Murgatroyd
Centre Manager
Helping Hands Community Trust
20 Oct 2010

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