Posted on 3rd July 2008
The Office of the Third Sector has announced the successful bidders to deliver its Grassroots £50m challenge fund.
To coincide with today’s announcement, the Community Foundation Network (CFN) has launched the Grassroots Personal Fund. Through the Fund, which will be operated by CFN’s member community foundations, donors can turn a £300,000 charitable endowment donation into as much as £1m.
The fund also enables a higher-rate tax payer creating a new fund with a £100,000 contribution to increase its value to £128,210 through Gift Aid and, in areas where a 100% top up is available, then further leverage it to £256,420. Higher-rate tax relief on the gift will reduce the donor’s contribution to just £75,000.
Beneficiaries of the scheme will be small, local and voluntary organisations, and donors will have an opportunity to specify broad themes of interest for causes they wish to support.
Through the Grassroots challenge fund, which was first announced in April, local organisations, such as community foundations, will be able to gain long-term financial sustainability through donations to their endowments, creating a sustainable source of income for local charities.
The Fund was inspired by a similar programme in the early 1990s, where a government fund of £2m generated endowed funds of £65m.
Stephen Hammersley, Chief Executive of the CFN, said, “This Grassroots Personal Fund will offer philanthropists all the advantages of a private charitable trust but without the administrative overheads. If we can replicate the success of the earlier scheme, this £50m investment could see over £1.5 bn committed to community philanthropy.”
Interested donors and advisors should contact their local community foundation.
