[WiLT] Small VCS groups prevented from applying to Empowerment Fund

[WiL Admin]

Government ignores charities' protests over £7.5m fund

The Government has ignored calls from charities to drop proposals to
prevent small voluntary sector groups from applying to its new £7.5m
Empowerment Fund.

Hazel Blears, the communities secretary, this week invited third
sector organisations to apply to the fund, which will help between 20
and 25 groups to run community schemes. However, only charities with
annual incomes of at least £400,000 can apply.

Charities called for the thresholds to be ditched when the Communities
and Local Government department consulted on the idea in September.

The department's summary of consultation responses acknowledged that
"many third sector organisations were disappointed with the financial
thresholds".

It adds: "It was felt that many of these organisations are of
strategic importance to community empowerment or focus on a particular
aspect and their experience and value would be arbitrarily excluded."

Many respondents, it says, felt "thresholds could potentially
discriminate against equalities groups that were typically smaller in
terms of income size and thereby could increase the disparity within
the sector. It was also felt that the thresholds could limit
innovation and new approaches".

However, the Government response printed on the department's website
says: "We want to limit the number of organisations so that the fund
makes a meaningful impact.

"We have also retained the principle of preventing overdependence on
this funding stream. Therefore, the fund will contribute no more than
50 per cent of an organisation's income in any one year."

Ben Wittenberg, director of policy and research at the Directory of
Social Change, called the decision "short-sighted".

"Income is a very blunt measure, but on its own it is completely
meaningless," he said.

The successful applicants will receive grants worth £250,000 or
£500,000 over three years.

http://www.thirdsector.co.uk/News/DailyBulletin/858569/Government-ignores-charities-protests-75m-fund/E1C176287E710C4F72FBFA5B2D368875/?DCMP
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