09 November 2007
Community Foundation Network (CFN) – the UKs largest charity supporting local community groups (making over £70 million in grants each year) – says the dormant bank accounts bill, announced in the Queens Speech, will not get money to the grassroots organisations which face a mounting funding crisis.
CFN Chief Executive, Stephen Hammersley, says such groups will lose at least £30 million in government grants over the next year and millions more from European schemes. He argues:
“Many people had hoped this legislation would help address the funding crisis now looming for small community groups, many of which are amongst the most effective in getting money to the most disadvantaged.
“In fact it now looks as if there will be no compulsion on banks and building societies to join the scheme. Government has pulled the plug on a huge swathe of local community funding. This bill was supposed to refill the bath but with the legislation framed as it seems, the inward flow of funds could be little more than a dripping tap.”
Hammersley concluded:
“The Big Lottery – which is to administer the funds set up under the bill – must now ensure that what money is raised gets to the grassroots, rather than going to the 10% mega-charities that currently absorb nearly 90% of all charitable income.”