Finance and 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 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

  1. How will the project be funded?
  2. Is external funding available?
  3. Are there any match-funding requirements or opportunities?
  4. What is the split between revenue and capital requirements?
  5. What are the key types of expenditure that will be incurred?
  6. Are there any specific conditions attached to the funding?
  7. Can the project be delivered differently or scaled back with less funding?
  8. What is the longer term funding/sustainability model?

Resources and links