Charities win the lottery, but at what price?

December 01, 1995

FIRST CHARITY AWARDS FROM LOTTERY

The UK Committee of the National Lottery Charities Board has now made 1,203 grants totalling £82 million, out of £160 million allocated for the first grants programme which concentrated on improving the quality of life of people and communities who are disadvantaged by low income and poverty. Its latest announcement on November 30 made grants totalling £4 million to 28 charities, including £242,000 to Project Fullemploy which works with companies and others to create jobs for young people from minority ethnic communities.

Some 15,000 applications for £2.4 billion were received for round one alone. Youth issues and low income is the second theme, with the more themes duirng 1996. Although applications are invited under any theme for voluntary sector infra-structure projects to improve effectiveness and efficiency, the specific theme of community involvement to increase “the sense of belonging, involvement and volunteering” does not start until Spring 1997. Contact the Charities Board on 0171 747 5300 (http://www.aslib.co.uk/aslib/)

PROSPERITY AND CIVILITY

Lord Dahrendorf, Chairman of the Council for Charitable Support, has called for a lottery-funded Millennium Foundation, free from government interference, to support voluntarism and the revitalisation of civil society. On November 22 he gave the annual Churchill Lecture to the English Speaking Union, sponsored by RTZ Corporation. Discussing how to “square the circle” of international competitiveness in the economy while maintaining civil and liberal values in society, he stressed the vital importance of local organisations and urged the stakeholder model for companies. Contact John Senior, RTZ, on 0171 930 2399

SCOTTISH VOLUNTARY COMMISSION

A new commission has been established by the Scottish Council for Voluntary Organisations to examine the changes needed in public policy to ensure that the voluntary sector’s place in Scottish life is safeguarded. Chaired by Arnold Kemp, former editor of the Glasgow Herald, it is currently inviting submissions. Contact Caroline Bamford, SCVO, on 0131 556 3882

NCVO COMMISSION

Meanwhile the Volunteer Centre UK has submitted 13 recommendations to NCVO’s own commission, calling for volunteer involvement to be the defining feature of all voluntary organisations. It also wants companies more strategically involved in supporting the sector and proposes a venture capital fund for small, innovative organisations.

The trade union, MSF, which represents most charity workers, has similarly submitted proposals, criticising the “unelected, unaccountable, undemocratic” National Lotteries Board and suggesting local councils be given lottery funds to distribute. Contact Jonathan Pinkney-Baird, Volunteer Centre UK, on 0171 388 9888 (voluk@mcr1.geonet.de) or Chris Ball, MSF, on 0171 378 7255

RESEARCH ON IMPACT

A steering group drawn from voluntary organisations is to manage a three year research project into the effect of the Lottery on voluntary organisations as a whole and on the different types and causes. Announced by the Home Office on October 20, the results will not be available until Spring 1997 with the final conclusions a year later. Contact Home Office on 0171 273 3000

CAF SOCIAL INVESTMENT FUND

The Charities Aid Foundation is launching a social investment fund to allow charities to borrow at low rates of interest. Due to start in early 1996, idea for a ‘charity bank’ builds on existing expertise in acting as a broker between conventional lenders and charity projects. However an application to the Millennium Commission for a donation of capital funding has been rejected. Contact Sue Pavey, CafCash, on 01732 770114

PAYROLL GIVING

A new payroll giving service has received Inland Revenue approval and became operative in October. Pay-Sharing for Charity is operated by The Charity Service, a Manchester-based non-profit organisation. To reduce costs, a minimum monthly contribution of £6 to any one charity has been set. The Charity Service wants the government regulations changed to allow small employers to devote their schemes to only one charity. Contact Ron Eaglesfield, TCS, on 0161 839 3291

LOTTERY ROUND-UP

The Arts Council of England made its seventh allocation of grants from the Lottery Fund on November 23. A total of £25 million went to 76 organisations, bringing its whole programme to £203 million since March, contributing 63% to overall project costs.

The Sports Council also made a seventh round of awards in October, bringing its total to £104 million for 586 projects, 48% of overall costs.

The Millennium Commission is conducting a public consultation about how to operate an awards scheme which can “enable individuals to achieve their personal aspirations and release their potential, enriching their lives and their communities”. In preparation for the Millennium Exhibition, the Commission has shortlisted four possible sites, along with three companies as potential operators.

Finally in November the National Heritage Memorial Fund granted £13.7 million to 56 projects, bringing its total to £70 million so far. Contact Arts Council on 0171 973 6458, Sports Council 0171 387 9415, Millennium Commission on 0171 340 2001 or Heritage Lottery Fund on 0171 649 1345

Comment

The hullabaloo which greeted the first awards by the Charities Board in October was stupendous, revealing massive ignorance about the voluntary sector in the media and among politicians and the general public. Charities themselves have generally been appreciative of the efforts of the Board. But companies are starting to ponder the role of their own community donations, when even the biggest like BT are dwarfed by the telephone numbers of Lottery loot.

The Lottery is almost proving too successful. The money now flowing will dominate existing funding sources, putting enormous power in the hands of those controlling the distribution mechanisms. Professor Dahrendorf and others are right to warn of the dangers. But how to diversity and localise the money, rejuvenating the grass roots of voluntary endeavour?

One route is a comprehensive network for the millennium of Community Development Trusts in every town, controlled by boards drawn from individual voluntary groups, councils for voluntary service, local companies and Councils. Perhaps no more “democratic”, they would in practice be very accountable locally, as well as knowing the score in their own patches. Each of the five good causes would need to be ‘top-sliced’ for the money: are they brave enough to let go of control?

Corporate Citizenship Briefing, issue no: 25 – December, 1995

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