Launch of third round of Voluntary Sector Transition Fund

The fund is designed to help organisations become more sustainable in the current climate and enable them to innovate. Ideas which could secure grants of up to £25,000 are around developing business plans, mergers and collaborations, developing new ways of working and improvements to increasing fundraising and reducing costs.

In total over two years up to £1.5m will be available from the fund, with £1m earmarked for this year and £500,000 next. The council has distributed the first two waves of funding earlier this year, handing out just over £550,000 to 45 local groups.  

A specially selected funding panel, with Community Action Southwark representing the interests of the voluntary sector, makes recommendations on awards to the cabinet member for equalities and communities. That decision is expected to be made in November 2011.

Cabinet member for equalities and communities at Southwark Council, Cllr Abdul Mohamed, said:  

"We've had a great show of interest so far in our transition fund, and I would urge all groups who haven't yet applied to fully embrace the opportunity that this third round presents. I'm pleased to say that the criteria has been revised to be more flexible than in previous rounds, and we are actively encouraging those organisations that have applied for national help to bid for this also, provided that they can demonstrate that this is for different work. The amount of funding allocated will depend on the quality of the applications and the extent to which innovation and reconfiguration is demonstrated."  

"This fund is designed to help groups develop long term and sustainable ways of working, which is why the best ideas which will help secure their futures are the ones which will be the most successful." 

Groups which have previously applied to the Transition Fund but have not been successful are eligible to reapply in round three. Advice should be sought on the quality of application previously submitted and the extent to which the criteria are met. 

Round three was opened officially on 9 September, and the deadline for applications is 5pm on the 21 October 2011. 

The Voluntary Sector Transition Fund 2011/12 report can be found on the council's web pages.  

Background Information

The purpose of the Voluntary Sector Transition Fund is not to replace lost funding or cover running costs for existing service delivery, but to enable organisations to become more sustainable in the current climate and includes:

• Development of fundraising strategies/funding bids
• Support with business plan development
• Enabling development of mergers and collaborations
• Enabling sharing of back office costs/shared services
• Development of initiatives that will support third sector organisations to engage with the personalisation agenda
• New models of service provision/innovation/ doing it more effectively and efficiently

The council has also reviewed the criteria under which the fund operates and decided that discretion will be shown to organisations who have also received national funding, provided that they can show the council that the transition funding will be for different work.