THE CABINET Office’s decision to strip Futurebuilders England of the contract to run a £215 million programme to help charities to deliver more public services has provoked dismay among small charities.
Futurebuilders England has run the Futurebuilders fund since it was established three years ago. But the Government has decided that another organisation, the Adventure Capital Fund (ACF), will take control of the Futurebuilders fund’s second phase, which begins in April, reports Third Sector (Jan 30).
The fund provides loans and grants to voluntary organisations and Kevin Curley, chief executive of Navca, which represents small charities, is worried about the ACF’s lack of grant-giving experience.
“I don’t think the ACF has any track record in awarding grants,” he says. “They are going to have to learn.”
Navca fears that the Government now wants to achieve its aim of charities delivering more public services by cutting back on grants and issuing more loans, which have to be paid back.
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The Futurebuilders England chief executive, Richard Gutch, says he is “very shocked and disappointed to lose the tender”. “My two priorities are to try to do the best I can for staff in trying to support their future and to support investees and applicants,” he said.
But Jonathan Lewis, the chief executive mof ACF, tells the e-mail bulletin Plaza Publishing that he is “delighted” to have won the contract.
And Phil Hope, the Third Sector Minister, says “ACF has demonstrated great ability and enthusiasm to take on this challenge.”
Futurebuilders England staff have been told they will remain in place on the same terms and conditions.
Around 250 third sector organisations have so far received funding from Futurebuilders.