Councils are operating in a difficult financial climate, but community action can be part of the solution to this challenge. The scale of individual projects varies greatly, from small short-term projects focused on one section of the community to large-scale projects, a seconded team or a dedicated team with sustained funding.
Councils are operating in a difficult financial climate, but community action can be part of the solution to this challenge. The scale of individual projects varies greatly, from small short-term projects focused on one section of the community to large-scale projects, a seconded team or a dedicated team with sustained funding.
Councils can use a range of funding arrangements to promote community engagement:
- Make use of underspend in other areas, even if it's small – successful community engagement can be done incrementally.
- Use existing resources differently, for example by seconding staff from other teams to work part-time on a community initiative.
- Access external funding sources such as Lottery funding, community grants and academic partners.
- Consider match-funding opportunities with local community groups, supporting them to take the lead on specific areas.
- Provide non-financial resources such as time, skills or facilities.
Target resources on developing a sustainable model:
- Dedicate resources specifically towards building relationships and partnerships.
- Ensure the investment aligns with a clear political and strategic vision for engaging communities and with one or more strategic directives.
- Don't rely on long-term funding – success is more likely when communities have a self-sufficient, sustainable model.
Consider your options – this will help to strengthen any business case or future considerations for scaling up the work:
- What are the alternative ways of delivering the required outcomes?
- What is the preferred option and why?
- What are the implications of the ‘do nothing' option?
- What methodology will be used for assessing the business case – for example, return on investment or social value?
- Have both qualitative and quantitative benefits been identified?
- Could the project be initially implemented on a smaller or pilot scale?
Have a clear exit strategy or sustainable funding model from the outset:
- Consider the options for sustainability (trading arms, fee-paying, community interest companies, social enterprise).
- Build voluntary capacity.
- Provide grant funding to build community resilience (e.g. flood resilience projects).
Questions for financing community projects
- How will the project be funded?
- Is external funding available?
- Are there any match-funding requirements or opportunities?
- What is the split between revenue and capital requirements?
- What are the key types of expenditure that will be incurred?
- Are there any specific conditions attached to the funding?
- Can the project be delivered differently or scaled back with less funding?
- What is the longer term funding/sustainability model?
Resources and links
- Introducing the neighbourhood challenge: seventeen stories begin,Nicola Stenberg (2011)
- Smart money: understanding the impact of social investment – what NPC has learned so far,Iona Joy (2014)