communities to achieve long-term community renewal, was launched
today by Home Office minister Lord Filkin.
range of alternative approaches to financial investment for community
initiatives, and aims to develop and evaluate new assessment
processes for selecting suitable organisations to invest in.
Invitations will be made to projects that benefit communities to
apply for a major investment grant. Around five to 10 projects, ready
to start immediately, will receive investment funds of between
£50,000 to£400,000. A further 20 smaller projects, which are not
ready to meet the timetable for this round of funding, will receive
smaller development grants.
The project will receive£2m funding from the Active Community
Unit (ACU) and£400,000 from the Neighbourhood Renewal Unit (NRU). Up
to£300,000 has also been committed by four Regional Development
Agencies for additional development grants.
Lord Filkin, the Home Office minister for race equality, community
policy, and European & international policy said:
'This innovative approach to funding aims to achieve long-term
regeneration through sustainable enterprise. Community enterprises,
which come in a range of different forms, will look for opportunities
for enterprise which can achieve social benefits, while also
reinvesting any surpluses back into the community.
'Projects receiving investment funds will be able to plan for the
longer term and be better placed to secure finance in the wider
financial marketplace - shifting organisations away from short term
grant dependency to longer term financial stability.'
Barbara Roche, social exclusion and equality minister in the ODPM, said:
'Ending poverty in our most deprived areas will only be achieved with
a strong community sector playing a pivotal role. Many community and
social enterprises are delivering key public services, from housing
to childcare, creating jobs, and engaging residents in neighbourhood
renewal. However, some do not have the resources or expertise to plan
for the future, limiting the potential of their positive impact.
'Today's announcement will test out new ways of providing funding
that promotes capacity building, helping community enterprises
improve their effectiveness in delivering real benefits over the long
Roger Brocklehurst, director, Local Investment Fund said:
'Community enterprises could be the next big thing: their distinctive
combination of self-help and trading for social purpose revitalises
communities and transforms service delivery. But most remain
undercapitalised - the Adventure Capital Fund will begin to plug the
investment gap that has held so many excellent organisations back.'
Helen Thomson, head of service inclusion and skills, Yorkshire
'Yorkshire Forward welcomes the initiative of the bursaries scheme
and that it is one strand that will support the recently launched
regional 'Framework for the Social Economy'. We are exploring the
creation of regional bursaries, to increase the impact of the
Adventure Capital Fund in the region'.
1. Invitations will be made to projects that benefit communities to
apply for a major investment grant from a list prepared by the fund
2. The 20 smaller grants are open to any applicants from the
participating Regional Development Agencies regions (currently the
East Midlands, London, East of England and Yorkshire & the Humber).
3. Decisions on applications will be by an Investment Panel
consisting of representatives from the fund partners (the ACU, Local
Investment Fund, New Economics Foundation, Development Trusts
Association and the Scarman Trust). The Local Investment Fund will
oversee how the funds are made available.
4. For further details of the Adventure Capital Fund, contact:
Roger Brocklehurst, Local investment Fund, 123 Minories, London EC3N
1NT, tel: 020 7680 1028, e-mail: firstname.lastname@example.org,
5. Community enterprises are independent organisations working in
local communities (inner city neighbourhoods, peripheral estates,
areas of industrial decline, coastal and market towns, rural
districts). They bring about social, economic and environmental
renewal through a wide variety of self-help and trading activities -
creating wealth for communities and keeping it there. More
information is available from 'Fabulous Beasts: stories of community
enterprise from the DTA', Development Trusts Association 2002. For
further information about community enterprises in general email:
email@example.com or visit www.dta.org.uk.
6. Initial proposals have been developed by a partnership of four
voluntary and community sector organisations experienced in this
- Development Trusts Association - a national network of local
development trusts, currently jointly funded by ODPM and ACU
- Local Investment Fund - one of the longest established community
development finance institutions (CDFIs)
- Public Interest Programme - a new joint venture of the Scarman
- a pioneer of investment approaches with grassroots social
entrepreneurs, receiving strategic funding from ACU and the New
Economics Foundation - leading innovator on social economy issues,
funded by ACU to develop and promote community-level timebanks.