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Jay Kennedy, director of policy, Directory of Social Change
Thanks to Lucy Marples for citing DSC’s research on the level of ineligible applications to trusts and foundations, in her article ‘Evaluating ethical investment.’1 Unfortunately, she seems to have largely missed our point.
The reasons that over one-third of applications to trusts and foundations are ineligible appear far more prosaic than ‘inadequate access to capital’. The lack of clear information from funders about their criteria, insufficient feedback on applications, and difficulty contacting a person to discuss proposals are some of the main issues the debate has raised so far.
Grants have always been and will remain a key ingredient in the sustainability of thousands of charities, in any number of different ways. Take a local community transport charity.
A one-off grant to buy the minibus, which is then maintained by low-cost user fees or donations, is more advantageous for the charity and its beneficiaries than a loan for the same.
Grants are not inherently any more unsustainable than the other new forms of finance being developed – in fact they can be more sustainable. We support the better banking campaign to improve access to fair finance.
But ‘social investment’ is not going to replace charitable grantmaking for the bulk of the voluntary sector any time soon – nor should it.
1. See Caritas, July 2010, issue 32, page 28
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