Statutory funding

This is money that comes from the taxpayer through a variety of routes, such as government departments, local authorities, and various pots of European money.

The main advantages of getting funding from public bodies are:

  • Large sums are available
  • They will fund ongoing running costs (revenue)
  • Grants can be lobbied for

The main disadvantages are:

  • The procedures for applying can be very bureaucratic
  • There can be lots of strings attached
  • Can be vulnerable to sudden cuts
  • Amounts available are often reducing and competition is very high
  • The jargon can be hard to understand
  • The level of accounting and monitoring needed can be very daunting
  • Grants are being replaced by contracts to provide particular services


Central government (Welsh Assembly)

Most central government departments have funding programmes for voluntary and community organisations. Grant schemes are designed to fit the policy objectives and programme outcomes of each particular department.

The Welsh Assembly Government (WAG) offers a wide range of grants to organisations across Wales such as the voluntary sector, local authorities and communities first partnerships. The grants are used to deliver services that meet the needs of the communities in Wales, such as improving housing, education and regenerating areas of deprivation.

WCVA information sheet on government funding contains details of grants schemes offered by the Welsh Assembly Government and other agencies.

Government funding is also available through a range of associated agencies, such as Assembly Sponsored Public Bodies (ASPBs), for example, the Arts and Sports Council for Wales.

It is important to be aware of changes and developments with government policies and structures. The priorities, criteria, and names of the government departments also change, and funding programmes will alter as a result.

Some central government funding programmes open annually on a competitive basis with set deadlines. However, some departments also fund the Third sector through direct funding relationships of organisations whose work is linked to their own interests. To a greater extent, the focus is now on ‘strategic funding’ which seek to support the particular policies of a department.

Useful resources

Local government funding

Almost all local authorities make grants to voluntary and community organisations. However, each one will manage budgets, administration and support differently according to local priorities and resources. Historically, specific departments within local authorities, such as Education, Housing or Social Services, have their own grant schemes to allocate to voluntary and community groups. Each having their own specific criteria, application procedure and timescales, although in recent years some local authorities are choosing to adopt a ‘corporate’ application form.

One of the main differences in local authority funding over the last decade has been the move away from traditional grant schemes towards contracts and service level agreements. This is of particular importance to voluntary and community organisations working in social services and health.

Many local authorities employ voluntary sector liaison or funding officers to provide advice and support. Local county voluntary councils (CVCs) should also have details of local authority funding.

Useful resources


European Funding

The European Union (EU) provides a huge amount of money for social and economic development in member states. The majority of funding goes to the poorer regions, with the bulk being used to subsidise food production. Relatively little funding is available to the Third sector.

Securing and managing European funding can be extremely complicated for voluntary and community organisations. Advice and support is available from WCVA’s Europe team and the Welsh European Funding Office (www.wefo.wales.gov.uk).

European funding for voluntary and community organisations orignates from the European Regional Development Fund (ERDF) and the European Social Fund (ESF).

  • The ERDF aims to reduce social and economic disparities between regions of the Union and is essentially concerned with business growth and economic regeneration.
  • The ESF aims to help reduce differences in living standards between member regions of the Union by reducing unemployment; improving and developing the skills of employed people; investing in industrial or rural areas, which are in decline; and investing in areas with low economic development.

The European Union (EU) has recently agreed the budget and regulations for the next round of funding for 2007-2013. It is estimated that the UK will receive approximately €9.4 billion.

The regulations introduce a number of changes to European funding, including three new priorities or objectives:

  • Convergence Objective: West Wales and the Valleys (WW&V) qualified for the Convergence Programme the highest level of EU funding support available under the successor programme to Objective One. This will bring approximately €1.85 billion (£1.3bn) of investment during 2007-2013.

WW&V covers the following unitary authorities: Blaenau Gwent, Caerphilly, Bridgend, Carmarthenshire, Conwy, Ceredigion, Denbighshire, Gwynedd, Merthyr Tydfil, Neath Port Talbot, Pembrokeshire, Rhondda Cynon Taf, Swansea, Torfaen and Ynys Mon.

  • Regional Competitiveness and Employment Objective: The remaining local authority areas (Cardiff and the Vale, Monmouthshire, Newport, Powys, Wrexham and Flintshire) qualified for the Regional Competitiveness and Employment Programme, the EU’s successor to the Objective 2 and 3 programmes, with an approximate funding allocation of €136 million (£97 million) during 2007-2013.
  • Territorial Co-operation Objective: Parts of Wales will also be eligible for Territorial Co-operation Programmes covering cross-border (between the West coast of Wales and the East coast of Ireland); trans-national and inter-regional programmes.

Useful resources