DCMS, Arts Council England (ACE) and the Heritage Lottery Fund (HLF) have announced further details of the £100m Catalyst scheme to boost private giving to culture.

The scheme is designed to enable arts and heritage organisations to diversify the way they generate income, increase their fundraising potential and develop new ways to secure private giving.

It includes a £55m endowment scheme jointly funded by DCMS, ACE and HLF, which was announced by Culture Secretary Jeremy Hunt in July and multi-million-pound capacity building schemes funded by ACE and HLF.

Hunt said in announcing the new guidance: “We are making rapid progress, with £100m now available to help culture and heritage organisations strengthen their fundraising skills and attract significant sums from private sources."

The aim of the scheme is to boost private giving and build “long-term resilience, sustainability and innovation”. Arts organisations will start their own endowments by attracting funding from philanthropists and supporters that will be matched from the Catalyst fund. Organisations can apply for funds of between £500,000 and £5m.

Its launch in July provoked a barrage of criticism from sector leaders, who believe it will benefit larger, more established arts organisations who can attract this level of support. Many believe the scheme is premature and that most arts organisations need help to build their fundraising capacity before considering setting up endowments.

Grants are being made available from the fund to help build the fundraising capacity of arts organisations. In early 2012, the Arts Council and Heritage Lottery Fund will open schemes offering grants of between £15,000 and £25,000 to build the fundraising capacity and capability of arts and heritage organisations with little or no fundraising experience.

Philip Spedding, of Arts and Business told Philanthropy UK in July: “Building endowments for the long term is a laudable aim but I think the scheme should be put on hold for five to 10 years and the money directed into building fundraising skills within the sector, promoting legacy giving and creating a more entrepreneurial culture within organisations.”

The new guidance for applicants is available here.

Read Philanthropy UK's story on the launch of the Catalyst Fund scheme