To keep the application process simple the money is distributed through three local funders across the region. These are slightly larger local organisations already based in the community and selected because they are familiar with the needs and causes in each area.
In the North East, the three local funders are:
The money can be used for a variety of reasons. Whether it's helping local clubs get hold of new kit, coaching new volunteers or simply giving the village hall a fresh lick of paint, Grassroots Grants aim to make a real and immediate difference to the work of the North East's small and local community groups.
Businesses across the North East were also invited to get involved through investing in the scheme's innovative endowment match challenge – the first of its kind in England.
Within the £130 million national programme, the Government has set aside a £50 million pot from which it will match endowment investments from local businesses – offering them the chance to contribute directly to supporting and sustaining the communities in which they operate.
Each local funder has a match fund target that it must reach in order to release an endowment allocation from the Government.
The endowment element, which is also open to individual investors, aims to ensure that Grassroots Grants remain available for many years to come. It is estimated that with match funding and sound investment this £50million will be worth £150million when it starts paying out in 2011. In addition, as Gift Aid can be claimed on donations to a charitable cause, a £1,000 match-funded contribution from a business would be worth £2,560 to the fund.
Phil Hope, Minister for the Third Sector, said:
"The North East is full of small groups and individuals who work tirelessly to tackle local problems and this £130 million fund is dedicated to supporting their efforts. Grassroots Grants will put essential cash in the hands of small local voluntary groups without all the paperwork required for larger grants.
"I urge local leaders and businesses to make an investment in the future of their community by contributing to the new endowment funds. Every penny that goes in will return a much greater value, particularly as donations will also be eligible for Gift Aid."
Alison Seabrooke, CDF Chief Executive said:
"Grassroots Grants is exciting as it provides funding for community groups now and into the future. Grassroots Grants reach out to grassroots groups that may have never even considered applying for grant funding before. The endowment match challenge enables local funders to continue this funding over the long-term giving small community groups a real future.
"Grassroots Grants are all about building a strong, independent third sector, and the Community Development Foundation is delighted to be administering such an innovative programme."
