Lottery changes threaten local charities

Lottery changes must not disadvantage local charities and community groups, according to two national organisations which support the local voluntary sector.

Responding to the Government’s consultation on Lottery shares, NAVCA and the Directory of Social Change have called on the Government to ensure that reforms do not lead to cuts in support and funding for local voluntary and community organisations.

In particular they believe the Government should:

1. Ensure that changes to the shares distributed do not reduce the overall amount of money going to local voluntary and community groups.
2. Ensure that funding redistributed from BIG is widely accessible to a range of local organisations.  For example, for community sports or arts groups rather than opera houses or elite athletics.
3. Work with distributors to develop clear criteria for evaluating and tracking joint bids between voluntary and community organisations and statutory bodies, with a view to ensuring funding is only for the voluntary and community sector and not acting as a substitute for statutory spending cuts.
4. Ensure that when Olympic assets are sold, any funds are returned according to the proportions that were in operation at the time funds were diverted.
5. Reconsider the proposed policy of a mandatory cap of 5% on Lottery administration costs, as this will act as a disincentive to:

• operating grants programmes which make many small awards
• investing in research and learning which supports effective programmes and development of good funding practice
• providing support to organisations with little experience of applying for lottery funds.

Kevin Curley, Chief Executive of NAVCA, said: "the Lottery is a vital source of income for many local organisations. These are the sorts of community led groups that make a real difference to their area and will help build the Big Society. It is really important that all lottery distributors target their funding at supporting local action and not elite activities."

DSC’s Chief Executive Debra Allcock Tyler added: "with public spending cuts threatening local authority grants, and trusts and foundations suffering from the recession, Lottery grants may become more important than ever for charities.  It’s vital that changes to the way the Lottery distributes money do not reduce the amount of money available to charities, or make it less accessible."

For more information please contact Jay Kennedy, Head of Policy, Directory of Social Change or phone (0151 702 0152, 07989 187537) and Barney Mynott, Policy and Communications Manager,NAVCA or phone (0114 289 3985).   

Notes to editors:

1.    NAVCA is the national voice of local support and development organisations in England. We champion and strengthen voluntary and community action by supporting our members in their work with over 160,000 local charities and community groups. NAVCA believes that voluntary and community action is vital for vibrant and caring communities.

We provide our members with networking opportunities, specialist advice, support, policy information and training. NAVCA is a vital bridge between local groups and national government.

Our specialist teams take a lead on the issues that matter most to local support and development organisations. We influence national and local government policy to strengthen local voluntary and community action.

NAVCA’s response is available at:  http://www.navca.org.uk/lotteryshares

2.    Founded in 1974, the Directory of Social Change (DSC) is a national charity which supports an independent voluntary sector through campaigning, training and publications.  DSC is the largest supplier of information and training to the voluntary sector, and its work helps tens of thousands of organisations every year achieve their aims.  Learn more at www.dsc.org.uk

DSC’s response is available at:  http://www.dsc.org.uk/nationallottery

3.    The Department for Culture, Media and Sport has conducted a consultation on the Government’s proposals to reduce the amount of money distributed by the BIG Lottery Fund, and to correspondingly increase the amounts distributed by the Arts Council, Sport England and the Heritage Lottery Fund.  See:  http://www.culture.gov.uk/consultations/7070.aspx