Modernisation Fund and Community Investment Fund

Information Session (e)

Modernisation Fund and Community Investment Fund

The Modernisation Fund

1. A three year £3m revenue fund, focused on outcomes, due to start in September. It is concerned with improved service delivery by existing organisations, which means that it will support restructuring, collaboration and better governance systems. There will be £2m this year, £1m next year (if can’t spend £2m this year, there will be permission to carry it forward to next year). The priority areas will be children, young people, and disability but this doesn’t exclude other service delivery areas.

Criteria

1. Once DSD’s criteria are endorsed by the Minister, the programme will be ready by the autumn. It will focus on two main areas: organisational development and modern service delivery.
2. Organisational development relates to governance improvement such as: ICT development, evaluation and outcome measures, quality standards and restructuring and redesigning to improve service delivery.
3. Modern service delivery aims to support new ways of working such as: common accounting services, feasibility studies for networks like Ballybot House, sharing back office services, improved service delivery through partnerships – for example between local community organisations and regional interest based organisations (for the elderly, mentally ill etc).
4. It will be important to identify benchmarks that lead to long term achievement of outcomes. The department will be looking for projects that demonstrate improvements to service delivery such as refurbishment of facilities to prevent the community losing vital services; improved governance in organisations that otherwise provide good services and disability access.

Two stage process

1. First stage will be a request for brief expressions of interest. The department will carry out ‘sifting’ to identify the most appropriate projects and then request more detailed information from short listed applicants. The maximum grant will be £100,000.

Next step

1. Pre-consultation period with key stakeholders in partnership with NICVA.
2. During the discussion outlined various issues related in government funding such as organisations with reserves not eligible for grant aid, yet procurement rules mean that government departments cannot buy services from organisations without serious assets. It was agreed these issues need to be ironed out, implying a need for a cultural shift at government level.
3. It was pointed out that the Modernisation Fund is still a short term funding programme funding a long term policy. However VCU believe this is justified because it is a fixed term programme to enable the sector to modernise and bid for public contracts. However, there is the expectation that the sector’s ‘effective response’ will allow the department to ask for more funding.
4. It was also acknowledged that the department should look at the need for synergy between Peace 2 extension which is inviting new projects and the Modernisation Fund which is targeting existing organisations.
5. In light of the imminent end of peace funding, the production of benchmarks and standards as part of the review of support services, the need to develop synergy between reformed council areas and the NGO sector, it was agreed that it may be wiser to consider restructuring, mergers and new directions sooner rather than later.

Community Investment Fund

1. Currently community organisations are forced to chase the latest funding and shape their activities to meet the latest criteria. The £5m Community Investment Fund represents an attempt to move to a needs driven rather than funding driven approach.
2. The department is in the process of designing criteria for the new fund, taking into consideration its existing programmes that include the community support programme through the local councils and Measure 3.3 of Building Sustainable Prosperity. The criteria will probably focus on building cohesive sustainable communities, core costs and supporting long term community development.
3. The target date for starting the programme is the end of the calendar year.
4. In the discussion it was mentioned that the fund is £5m initially and NICVA is in discussion with DFP about long term intentions. DFP argues that the government already provides £12m- £15m for the sector by matching peace funds. It was pointed out that this budget line should be directed into the community investment fund when the peace money ends.
5. There was discussion about getting the balance right between the need to be strategic by supporting a smaller number of existing organisations and the need to bring in competition, innovation and provide small grants to small groups.
6. NICVA stressed the importance of keeping the pressure on DSD, the minister and DFP to stop other priorities taking the focus away from the needs of local communities and the sector.