Charity Bank leads consortium chosen to manage £125 million Futurebuilders public investment fund

27.04.2006

The Chief Secretary to the Treasury, Paul Boateng, today announced that a consortium of charities has been selected to administer and distribute the £125m futurebuilders fund. The consortium will be led by Charity Bank, NCVO and Unity Trust Bank. Other organisations that will play a key role are the Impetus Trust, the Community Fund and the Northern Rock Foundation. Together, they bring a wide range of experience in grant-making, loan finance and funding information and advice to the voluntary and community sector.

Chief Secretary to the Treasury, Paul Boateng said: “In selecting this consortium, we are ensuring that the voluntary and community sector will continue to be in the driving seat in running the fund. This has been a unique and rewarding project to work on and I wish futurebuilders great success as it now begins to filter down to the organisations in the sector who will make best use of it.”

Fiona Mactaggart, minister in the Home Office, who will assume lead responsibility for futurebuilders in the New Year, said: “This is good news. This investment will help voluntary and community organisations play a more central role in service delivery. It will mean improved and expanded services that offer greater choice to local people. What we all want to see is this money out and working in the sector as soon as possible.”

Sir Michael Bichard, Chair of the Compact Working Group, commented: “The consortium that is taking on the task has the strength and depth of experience of the voluntary and community sector and of social enterprises to ensure that this exciting new fund reaches far and wide in its investments, and makes a real difference in improved and expanded public services.”

Chief Executive of Charity Bank, Malcolm Hayday said: “We in the consortium are very pleased to have been selected provider of choice. We are now eager to get on and put our systems in place so that the fund is up and running as soon as possible. We will announce further details just as soon as the formalities of the contract are concluded.”

Notes

1. futurebuilders is a £125m investment fund to strengthen the contribution of voluntary and community organisations, including social enterprises, to public service delivery in the key areas of health and social care; crime; community cohesion; education and learning; and services fro children and young people.

2. The Chancellor announced in his Pre–Budget Report on 10 December that responsibility for futurebuilders will pass to the Active Communities Directorate in the Home Office in the New Year.

3. The consortium will now move into detailed negotiations with the Home Office to conclude the contract to run the fund. The consortium will issue further details about how it will operate once these negotiations have been concluded in January. A proposed timetable for rolling out the fund will be announced at that time.

4. Sir Michael Bichard chaired the evaluation panel that made the final decision on who would be awarded the contract to manage the fund.

5. THE CHARITY BANK LIMITED (CHARITY BANK)

  • only UK bank which is also a general charity
  • has lent over £17 million to voluntary and community organisations in every region of the UK

UNITY TRUST BANK (UNITY TRUST)

  • fastest growing bank in the voluntary sector
  • specialises in providing innovative lending products for the sector
  • based in Birmingham; has its roots within the wider social economy

THE NATIONAL COUNCIL FOR VOLUNTARY ORGANISATIONS (NCVO)

  • the largest membership association in the voluntary sector, with almost 3,500 members
  • its Sustainable Funding Project has an excellent track record of enabling organisations to explore new ways of funding their work

THE COMMUNITY FUND

  • largest independent funder of the voluntary sector in Europe
  • regional structure, with offices in each of the nine regions in England
  • eading funder to develop an outcomes approach

The consortium will also be supported by:

IMPETUS TRUST

  • the first venture philanthropy fund in the UK

and

NORTHERN ROCK FOUNDATION

  • leading regional corporate foundation, with headquarters in Newcastle
  • is funded entirely by an annual donation of 5% of NR plc’s profits
  • works to assist disadvantaged people in the North East and Cumbria, through grants, loans and training for not for profit organisations.

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