The Challenge Network, a charity founded by the government's former Big Society adviser Lord Nat Wei, received a grant from the Cabinet Office in the last financial year that was seven times bigger than its income in 2010. 

It was revealed this week that four charities received grant funding from the Cabinet Office last year that accounted for more than 25 per cent of their annual incomes, when minister for the Cabinet Office Francis Maude disclosed his department’s grant funding to organisations in 2011/12.  The disclosure came in response to a Parliamentary question from shadow minister for civil society Gareth Thomas.

The Cabinet Office has funded 61 organisations to a total value of £32m for the 2011/12 period. Ten organisations have been awarded more than £1m.

The Challenge Network, which is the main provider of the National Citizen Service scheme this year, has been awarded the biggest amount of £7m. The next biggest has been awarded to youth charity v, which is getting a £3m grant from the Cabinet Office over the next two years. Much of this funding is also for National Citizen Service delivery.

Big Society Capital has also been awarded a grant of £1.6m.

Four of the organisations awarded more than £1m are getting grants from the Cabinet Office which amount to more than 25 per cent of their annual incomes, according to the most recent audited accounts on the Charity Commission website.  This runs contrary to the Office for Civil Society's policy on strategic partner funding, which stipulates that no strategic grant should comprise more than 25 per cent of its total income.

For details on the full list of recipients click here.