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Funding: consortia and embedded basic skills


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Start up funding

It is likely that any organisations thinking of developing a Consortium will need to be able to invest resources from their own coffers in the developmental stage prior to attracting funding for further development work. Organisations involved in developing Consortia should consider from the outset, if they are in a position to do so, and may need to have the support of their governing body to be potentially working outside of their primary charitable objective. In some circumstances, individual organisations have had to for example, change their constitutions to allow them to work as part of a consortia which is wider than their own geographical area of operation.

Making a case for funding the VCS learning Infrastructure

Several Government strategies acknowledge the importance of the VCO having an infrastructure to support skills and workforce development in the sector. They further acknowledge that Consortia are a useful mechanism supporting the achievement of a number of Government targets.

> Read the Working Together Strategy on the LSC website
> Read more about ChangeUP on the Home Office website.

It is useful for Consortia to familiarise themselves with these strategies in order to illustrate how they (Consortia), can play a key role in implementing those strategies. Prior research into, for example, the size and scope of VCS involvement in learning, and existing anecdotal evidence might help to secure funding for further research and potentially funding to bring partners together.

Who might fund the development of Consortia

It is quite unlikely that VCOs will get funding to develop the consortia. However, it is more likely that Emerging Consortia will attract fund to explore particular aspects of consortia work. This might include funding for research into the workforce development activities and needs within the sector, or consultation on the feasibility and structure of developing a Consortia.

> Pulling together a partnership
> Identify the need
> Research
> Building on the existing infrastructure
> Funding for research
> Funding Options

Funding for research

Established Consortia have, on the whole, found the easiest way of kick starting the process of developing a Consortia is to secure funding for mapping and research activities. Research results usually provide a body of evidence as to the needs, as well as data on the VCS workforce. This evidence proves useful in arguing the case for additional funding of the Consortia and its activities.

> Funding Options

 

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Sustainable funding

Increasingly, funders are less interested in funding organisations and more interested in funding the work they actually deliver. What emerges is a patchwork of funding. ACEVO (the Association of Chief Officers of Voluntary Organisations) have produced a model based on this. It can be summarised as follows:

  • Full (project) funding in which all reasonable associated costs are met.

  • Development funding through which the internal infrastructure costs of an organisation are met for a time in order to enable it to grow and develop.

  • Strategic funding through which the funder recognises the need for an organisation to exist - to meet its own objectives - and is prepared to contribute over an agreed period.

In order to secure the survival of the whole organisation core costs have to built in to any funding bids. This is known as full cost recovery, and the Government are particularly keen to see this model for funding VCOs, adopted by those issuing contracts to the sector. The sustainability of Consortia is reliant in the main, on a mixture of project funding, drawing down mainstream funding through contracts, whether directly or through franchise models, grants and trust funding and self generated income.

> Funding matrix

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Funding options

There a several potential funding sources, dependant upon the needs of the organisation and the type of engagement sought.

1. Mainstream LSC Funding

 

2. LSC Discretionary Funding Sources

There are a number of streams to bid for.

  • Some are designed to support small organisations in their service development.

  • You don’t have to have provider status to get them.

  • Short term funding.

  • Local variations in priorities mean differences in allocations - contact your local LSC
    Contact details for the Local LSCs can be found on the LSC website.

  • Some of the funds available now are:

    • LSC Widening Adult Participation Action Fund (WAPAF) - for local developments.

    • Local Intervention and Development Fund(LIDF) - for capacity building in deprived areas lasts one year.

    • Neighbourhood Learning In Deprived Communities - for projects working directly with communities, or in partnerships, to deliver learning - lasts 1 year.

    • Go to the LSC website (www.lsc.gov.uk) for details of these and others.

3. Other funding sources

There is a wide range of other funding sources available for development work and, sometimes, service delivery. Most of these funds are time limited and so may create problems of sustainability. They are, however, important in development and dealing with what are seen as urgent and immediate needs. The sources include:

  • Regional Development Agencies (RDAs) - administer the Single Regeneration Budget (SRB) and Skills Development fund. They work to a strategy set out in FRESA (the Framework for Regional Skills and Employment Action)

  • Job Centre Plus - has contracts to deliver employment related training with approved providers only. Contracts usually last 3 years.

  • New Deal for Communities (NDC) - Government fund, aimed at regeneration in NDC areas. Contact the local NDC partnership, if you are in an NDC area.

  • Futurebuilders - a new fund, government run, in consultation with the VCS. May be good for building, research and service development.

  • Neighbourhood Renewal Areas - are the 88 most deprived areas in the country. They attract the Neighbourhood Renewal Fund, Community Chests and Community Empowerment Fund.
    > Get the full list of areas and lead organisations here

  • European Funding - a number of sources of funds from Europe can support learning activities. These include Gruntvig, supporting innovation, availability, accessibility and quality developments in the adult education.
    > Read more about Grundtvig on the NIACE website
    The European Social Fund (ESF) is complex. Contact your local LSC, CVS, Government Office or VCS Consortium for advice and information.

  • Community Fund and New Opportunities Fund (AKA the Lottery) - Have combined to become The Big Lottery Fund. Funds up to 3 years for discrete projects, including developing skills and knowledge in local communities.
    > Big Lottery Fund website

  • Grant Making Trusts - There are a very large number of grant making trust in the UK. Some are big organisations, and fund a range of activities. Others confine themselves to specific areas. There are a number of guides to help you in finding and bidding for funds. See next bullet.

  • The Directory of Social Change publishes directories of funders and guides for raising funds. They also host a website designed for VCOs to search for Government funding from a number of Government departments.
    > DCS Publicatoins
    > VCO government funding website

  • “Funding neighbourhood learning”, Lynne Bryan and Cheryl Turner - NIACE 2004, is a new guide, and available from:
    > The NIACE online Book Shop.

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Reporting to funders

The systems, which need to be put in place to report to funders, especially those asked for by the LSC can be onerous. Consortia will need to be confident that they are able to do so. The picture of what might be asked for is an inconsistent one. The LSC might ask for a range of different systems for monitoring and evaluation to be put in place, dependant on what is being delivered, on what basis the funding is given.

> Quality, monitoring, evaluation and management systems

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