The Grassroots Grants scheme announced in July’s government Third Sector Review has come to fruition with philanthropists across the country being invited to become local partners in delivering a £130m fund.

The fund, which will run from 2008-2011, will be administered nationally by The Community Development Foundation (CDF), and grass roots third sector organisations will have access to grants of as little as £250.

There will also be a £50m endowments programme to enable local funders to generate additional donations on a matched basis and invest them in endowments, thereby building their capacity to provide long-term funding for frontline community organisations. An £80m small grants fund is for community organisations.

The £50m fund aims to incentivise and encourage philanthropists to support small community projects by more than trebling the value of their donations.  Under the rules proposed for the scheme, higher-rate taxpayers could see their net gifts increase by up to 333%, as every £1 they donate at their higher rate of Gift Aid relief will be topped up with up to £1 of government money.

Local funders interested in applying should go to CDF’s website to download a copy of the guidance notes and application form. The closing date for applications for local funders is 30 April 2008. The funding is only available in England.