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Despite recent evidence to show the dramatic decline in grant funding from government in favour of contract agreements, Phil Hope, Minister for the Third Sector, has expressed his support for a new pamphlet designed to help charities persuade local authorities of the urgent need to keep funding in the form of grants, rather than contracts.
Sustaining Grants, officially launched at the Directory of Social Change and led by Kevin Curley, Chief Executive of NAVCA, includes eleven case studies highlighting the essential role of grants in sustaining the work of the smaller voluntary and community organisations. Referring to the work outlined in the case studies, the Minister acknowledged that the pamphlet was ‘a powerful summary’ and said, ‘I agree 100% that the role of grants made it all possible, allowing groups to take risks, innovate and act, offering organisations independence.’
Commenting on the launch, Debra Allcock Tyler, DSC Chief Executive, acknowledged the government’s official line in supporting grants, as well as their actions in releasing grant funding, but she said the Office of the Third Sector were not the biggest players. She said, ‘The reality on the ground is that local authorities are taking a drastic and dangerous shift away from grants towards contract funding.’
She continued, ‘What we need is for the Office of the Third Sector to act as a sector champion in protecting the grant portion of local authority budgets.’ She also acknowledged Kevin Curley as the driving force behind the campaign.
Joe Montgomery, Director General of the Communities and Local Government Directorate, also spoke at the launch. Referring to the current consultation process and to previous calls for an open door policy, he said, ‘If there are inadvertent ways we disadvantage the voluntary sector we would like to learn about it. We don’t see enough of you in Eland House and our ministers have said we want to see more of you….we want to change our nature!’ He also encouraged charities to respond to their current consultation on improving engagement with the third sector.