Navca has raised concerns about the Big Lottery Fund’s emphasis on ‘demand-led’ funding in its response to the funder's proposed new priorities for capacity-building funding.
BIG’s consultation on ‘Building capabilities’, which outlines the organisation’s priorities with regard to building capacity within voluntary organisations and social enterprises, drew a mixed response from Navca. Navca was supportive of large chunks but argued that the funder was creating a “false dichotomy” between the traditional funding model, which presently sees BIG fund many infrastructure and capacity-building bodies, and the proposed demand-led one.
The BIG consultation follows its commitment of £20m in funding to building local infrastructure to complement the government's pledge to invest £30m in the same field. The consultation will help shape the way its £20m is delivered.
While Navca argued that local support and development organisations are “are well positioned to make a unique and unrivalled contribution to the success of demand-led schemes”, it said that the mooted new approach might overlook the importance of bodies sharing learning and other important activities undertaken in the current model.
“The demand-led approach decouples the connection between support and representation and ignores the benefits which derive from having organisations which focus on both activities,” the Navca response read.
“In our view BIG has created a false dichotomy between local support and development organisations and alternative providers.”
It went on to argue that there is “little evidence” that demand-led schemes are more effective than traditional models of funding, like funding infrastructure bodies. “We believe that there is still a role for some investment in providers,” said Navca.
No 'pressure to grow'
Navca also raised urged “caution” regarding suggestions in the ‘Building capabilities’ consultation that projects be ‘scalable’ in addition to ‘sustainable’ and ‘replicable’.
Navca said: “Pressure should not be brought to bear on high-performing local organisations to grow if this does not fit with their strategy or aspirations or where this will undermine their community roots, which are often fundamental to their initial success.”
