Businesses encouraged to support local community projects

10 September 2008

The government has set up a new scheme designed to get businesses involved in the development of projects in their local communities.

The Grassroots Grants scheme is aimed at local voluntary and community groups with incomes of less than £20,000 a year.

Groups will be able to apply for grants of between £250 and £5,000.

The Cabinet Office also announced that local and regional businesses are being invited to make a contribution to such projects.

The government has set aside a pot of £50 million which will be used to match endowment investments from businesses.

The aim is make sure that funding is available to community projects over the long term.

It is estimated that, with match funding, the initial £50 million could worth as much as £150 million when payments start in 2011.

Donations from businesses will be eligible under the Gift Aid scheme, so that a £1,000 match-funded contribution from a business will be add up to £2,560 for the charitable project.

Phil Hope, the Minister for the Third Sector, said: “I urge local businesses to make an investment in the future of their community by contributing to the new endowment funds. Every penny that does in will return a much greater value, particularly as donations will also be eligible for Gift Aid.”

More information about the Grassroots Grants programme, including a full list of contacts for local funders and the areas they cover, is available at http://www.cdf.org.uk