Key sources of external funding are:
Sport England
Sport England is a possible source of funding providing your project reflects the priorities of your region’s sports plan which you can find at the Sport England and the National Framework for Sport. Funding applications submitted to Sport England will be passed on to your regional sports board that will make the decision. Grants awarded through this route are for over £5000, although it should be noted that funds are extremely limited.
National Governing Bodies of Sport, with the support of Sport England’s national investment funding stream, may consider working in partnership with a local authority if the proposed initiative supports the NGBs whole sport plan.
Section 106
A major source of funding for sport and leisure planning is Section 106 Agreements. Section 106 Agreements are planning obligations determined by Section 106 of the own and Country Planning Act 1990 amended by the Planning and Compensation Act 1990 Section 12. Under Section 106 developers are obliged to include in their plans something which:
- will benefit the land or the local area e.g. builds a housing estate which contains a sports, leisure or community centre, or
- includes a restriction on the development or use of the land
In some instances it may be that the benefit required is close to, but not in the proposed development. In this case developers may be required to make a financial contribution towards this. In other words there needs to be a planning benefit to the local authority as well as the developer under Section 106 Agreements. PPG17 assessments will be crucial here to provide evidence of need.
The Big Lottery Fund
The Big Lottery Fund is a major source of funding for communities. Lottery funding is now distributed through the BLF’s Well-being programme and the Reaching Communities: England programme is likely to be of particular interest to local authorities.
The well-being programme is focused on supporting the development of healthier lifestyles and improvement of well-being Its aims are to:
- Support communities in greatest need to create healthier lifestyles and improve well-being
- Encourage approaches to health and well-being that make sustainable connections between mental health, physical activity and healthy eating
- Promote partnership working between organisations within the health sector and across other sectors to increase participation and innovation and encourage a joined up approach
Applications for this funding will require a portfolio approach i.e. a series of projects at national or regional level which will have a positive impact. There will only be a maximum of 20 awards nationally of up to £1m so this is a fund which you may wish to work in partnership with other authorities or groups.
The reaching communities fund is focused on projects that have direct community involvement from the outset and that help those most in needs including hard to reach groups and individuals. Grants are for £10,000 - £500,000 and can be for up to five years funding.
European and Other Sources
A potential European source of funding is the European Regional Development Fund. The ERDF is focused on economic development of the poorest areas and so you will have a better chance of this funding if your project has substantial benefits to your community which would not take place otherwise. You will, however, be expected to source match-funding as ERDF usually only funds up to 50% of the project.
Other EU grants are also available which may match your needs.
In addition there are a range of other sources. A particular challenge for local councils, however, is that many charitable foundations which distribute grants will only fund charitable organisations. Therefore, in order to attract funding from these sources local authorities could consider enabling local charitable organisations to apply for the funding by providing a financial contribution to the project. This way, you are not only increasing potential access to funding, but are also empowering your community and contributing to your community plan.
If you are enabling community groups or sports clubs to seek funding you could direct them to Sport England’s funding support pack which provides some information on some funding sources and fund raising. Further guidance notes on funding are also available.
The Foundation for Sport and the Arts may be relevant where community groups have been involved in fundraising and have a project which will encourage people, especially young people to become more active. The foundation will fund capital projects and may consider revenue projects providing there is a clear business plan and management structure in place.
Private Finance Initiative (PFI)
This source of funding is also sometimes known as Public Private Partnership funding (PPP). Essentially it involves entering into an agreement with a private sector organisation to provide the finance needed to acquire an asset, usually a built facility. The same company that provides the funding also undertakes the design and construction of the facility to a brief provided by the client authority. The private sector company will then enter into an agreement to manage the facility, and to provide staffing. In some cases, such as schools and hospitals, this would be limited to catering, cleaning and maintenance staff, with professional services still being provided by local authority staff. In the case of sport facilities, normally sports centre staff would be employed by the private company if the asset has been built under a PFI contract. The client authority then pays the PFI company ongoing rent for the use of the facility, usually over 30 years, which is made up of a management fee and capital charges. Some early PFI schemes gave the ownership of the facility to the PFI company at the end of the agreement period, but most now specify that the asset returns to the commissioning authority.
Although the arrangement is between an individual local authority and the private company concerned, the government has to approve each scheme and acts to limit the amount spent by Authorities on schemes of this type. It also sets the agenda for national building programmes such as “Building Schools for the Future. Because of the high rates of interest which are normally incurred, and the implications for revenue budgets of funding major schemes in this way, some authorities have had cause to cast doubt on the value for money of PFI schemes However, for many this has now become one of the few routes to significant capital investment.
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