| Changes to Voluntary Sector Funding |
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Sheffield City Council has announced proposals this week which will significantly change the way it funds the local voluntary and community sector (VCS).These proposals include cuts of 15% next year to the £73m worth of funding which the VCS receive from the Council in the form of grants and contracts. Over 1200 organisations have been sent a letter this week outlining the proposals and giving information about the consultation process. The main points are:- Although there will be a 15% overall reduction to the £73m, these will be equal with no one organisation facing more cuts or getting more funding then another. They are working on a possible 7.5% cut to the budget for each of the following 2 years but this is very fluid. Each of the organisations facing cuts will have the opportunity to be consulted and be able to put their case to the Council. Around half of the £73m is provided in some form of grant funding. The Council wants a much higher proportion of this to be in the form of contracts, possibly gained through competitive tendering. It is going to look at all 1200+ funded organisations and decide whether it should be a grant, commissioned, or put out to tender. Some organisations may not be funded after this process. However there may be some extension of funds beyond April for organisations that have all their funding cut to help cope with this. Council officers have said there will be a clear set of criteria used to make these decisions, including reviewing whether they are good value and in line with the Council’s key policy drivers and priorities.More Council services will also be opened up for potential VCS delivery. The Council is looking for a wider pool of organisations to apply for grant funding and it is intending to commission an independent provider to run the grants programme. Grant aid will be allocated for a shorter period as an interim measure while new arrangements are set up. Community Assemblies will take more responsibility for distributing small grants. Following these changes there will be a report to Cabinet in February following a two month consultation period. Organisations and individual can email their views on these cuts and the Council will also be setting up an internet page for information and comments. Voluntary Action Sheffield has proposed that a Compact event in December is part of the consultation. To read the letter to VCS organisations or Sheffield City Council's press release, please view this article on the VAS website
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