The Cabinet Office has unveiled the name of a new, multi-million pound funding programme to boost local community organisations with much-needed access to small grants and long-term financing. It also announced the appointment of the Community Development Foundation as its lead national partner in delivering the scheme.

will launch in the new year with £130 million available from 2008-2011 to strengthen the community sector. It will be divided into two parts: an £80 million small grants fund for community organisations; and a groundbreaking £50 million endowments programme to enable local foundations to generate additional donations from the private sector on a matched basis and invest them in endowments, thereby building their capacity to provide long-term funding for frontline community organisations.The Community Development Foundation (CDF) will open an application process in January to identify and appoint local funders who will deliver grassroots grants locally. Applications will be invited by April with further details of the process and the programme to be confirmed next month.

Minister for the Third Sector, Phil Hope, said:

‘The allocation of £130 million to this scheme reflects the Government's recognition of the vital role community organisations play in strengthening communities. Community-based organisations are at the very root of civil renewal, bringing local people together and empowering them to meet local needs or transform local environments. Yet we know they often struggle to gain finance, placing enormous constraints on their ability to operate. That's why grassroots grants is aimed at improving the funding available to the very smallest of community organisations.'

‘I am delighted that the Community Development Foundation will be our lead national partner in delivering the scheme. Their experience and understanding of the community sector, as well as their track record in successfully delivering grants, will be of enormous benefit in getting Grassroots Grants up and running quickly.’

Alison Seabrooke, Chief Executive of the Community Development Foundation, said:

‘Community Development Foundation is delighted to be the national lead partner appointed to oversee and evaluate Grassroots Grants on behalf of the Office of the Third Sector in the Cabinet Office. At a local level grassroots grants will support local community based activity in small voluntary and community groups through the small grants programme, whilst also building the capacity of local funding partners and sustaining small grant giving through the endowment programme. All existing local grant givers who meet the criteria are welcome to apply to become local funding partners - and we look forward to receiving their applications after we open the application process.’

Further information about grassroots grants will be available in the new year.