Transition Fund opens for business

Further to this post, the government has just announced that the £100m ‘transition fund‘ — aimed at helping those civil society organisations and social enterprises that are heavily dependent on publicly funded contracts weather the public spending cuts — has opened for business. It is being administered by the Big Fund (the renamed Big Lottery).

RAWM has just explained in a recent email briefing that to be eligible to apply organisations must:

  • Be civil society organisations with an income of between £50,000 and £10 million
  • Derive at lt least 60% of income is from taxpayer funded sources
  • Spend at least 50% of your taxpayer funded income on service provision in at least one of the following areas – health and social care; homelessness; education and training; offender rehabilitation; welfare to work/ employment services; children and families; debt counselling and legal advice
  • Have  free reserves of not be more than six months
  • Face significant cuts; you will experience cuts of least 30% of your taxpayer funded income in 2011/12, as compared to your most recent set of signed annual accounts
  • Deliver the majority of your services in England.

The minimum grant size is £12.5k and grants will meet no more than half your taxpayer funded income. This means that you will have to stand to lose at least £25k.

The majority of the grant expenditure must be on change activities.

There are briefing events in Birmingham on the 10th December for which attendees must register by 5pm on Monday 6th December — details here on the Big Fund website.

Update: Be sure to read Pauline Roche’s helpful explanatory comment below if you want a quick intro to what ‘change activities’ covers!

  1. Pauline Roche Reply

    I wondered what “change activities” meant so I searched the Transition Fund site – they say it can include:

    -developing and redesigning existing and new services in the public service areas
    -restructuring or moving to a different business model, including redundancy costs where necessary
    -the costs associated with moving services to or from other organisations
    -the costs of developing new partnerships, alliances, mergers and/or shared services
    -staff training
    -getting expert advice and support

    …and…

    The majority of the grant must be spent on change activities.
    The focus of the Fund is to provide a chance for organisations to review the ways they are working and prepare for and engage in a different funding environment. Grants will cover no more than half the value of the taxpayer funded income you expect to lose. Therefore, the grants should not be seen as a replacement for that lost income.

    However, we understand that in some cases it may be appropriate to use a small amount of the grant towards the continued delivery of services.
    Examples could include:
    -to cover salaries of core staff while your organisation completes remodelling activities where cuts in taxpayer funded income might put such a transition at risk.
    -to cover a short period of service delivery until the impact of restructures or efficiencies your organisation is making have been realised.

    If you intend to use some of your grant to deliver services you will need to explain how this funding will help you achieve the programme outcome.

  2. Pauline Roche Reply

    I wondered what “change activities” meant so I searched the Transition Fund site – they say it can include:

    -“developing and redesigning existing and new services in the public service areas
    -restructuring or moving to a different business model, including redundancy costs where necessary
    -the costs associated with moving services to or from other organisations
    -the costs of developing new partnerships, alliances, mergers and/or shared services
    -staff training
    -getting expert advice and support”

    …and…

    “The majority of the grant must be spent on change activities.
    The focus of the Fund is to provide a chance for organisations to review the ways they are working and prepare for and engage in a different funding environment. Grants will cover no more than half the value of the taxpayer funded income you expect to lose. Therefore, the grants should not be seen as a replacement for that lost income.

    However, we understand that in some cases it may be appropriate to use a small amount of the grant towards the continued delivery of services.
    Examples could include:
    -to cover salaries of core staff while your organisation completes remodelling activities where cuts in taxpayer funded income might put such a transition at risk.
    -to cover a short period of service delivery until the impact of restructures or efficiencies your organisation is making have been realised.

    If you intend to use some of your grant to deliver services you will need to explain how this funding will help you achieve the programme outcome”.

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