Funding for Rural Community Buildings
There are a number of funding sources for capital works, activities and service provision within community buildings. However, ACRE would strongly advise that you contact your local adviser, who will be familiar with all current sources both locally and nationally as well as any new funding that is likely to be available. The information below provides some initial guidance.
ACRE’s Village Hall Information Sheet 4 ‘Funding Trusts for Village Halls and Community Centres’ provides information about sources of funding that could be available for your hall.
Good news for rural community buildings
Action with Communities in Rural England (ACRE) and the Rural Community Action Network (RCAN) welcome today’s announcement about future funding from the BIG Lottery Fund. A dedicated capital funding stream is expected to be launched in the Autumn as part of the BIG Lottery Reaching Communities programme. view press release
Government Funding
Rural Community Buildings Loan Fund
COMMA
Indirect Government Funding
Gift Aid
Gift aid is tax relief on money donated to UK charities. Donations are treated as if the donor had already deducted basic rate tax from the donation. The charity can then reclaim this tax to increase the value of a donation.
More information is available on Her Majesty's Revenue and Customs (HMRC) at website www.hmrc.gov.uk/charities/ or telephone the HMRC charities helpline on 0845 302 0203.
VAT
Village halls wishing to build annexes intended entirely or partly for charitable use, may be able to benefit from zero rating of VAT. New build halls and disabled facilities are also available for the zero rate. For VAT purposes a village hall has to make the building available to the local community for a wide range of activities, such as playgroups, parties, jumble sales and public meetings for example.
Find out more from Her Majesty's Revenue and Customs website, www.hmrc.gov.uk or call the national enquiries Helpline on 0845 010 9000.
ACRE’s Village Hall Information Sheet 18 ‘Village Halls and VAT on Building Work and Other Purchases’ provides information about VAT.
Funding from Local Authorities
Local authorities can fund village halls from revenues or reserves in various ways such as:
- Direct contributions to capital expenditure, either building halls owned by the council or pay grants to others;
- Contribute towards the running costs, either directly (if managed by the council) or indirectly by paying grants to a body that runs the village hall in its area.
- Ensuring that the hall receives 100% rate relief. 80% mandatory relief is available to organisations esablished for charitable purposes under sections 43 and 45 of The Local Government Finance Act 1988. 20% discretionary rate relief is available under section 47 of the Local Government Finance Act 1988. See ACRE Village Hall Information Sheet 24 ‘Village Halls and the Payment of Rates’.
Local authorities do not receive any specific grant from Central Government for village halls. Therefore grants from local authorities’ are entirely at their discretion, and each authority would have its own criteria, terms and conditions for funding.
Contact your local authority to find out what funding is available for community buildings, including village halls or your local village hall adviser who will be pleased to advise
Parish Councils and Precepts
Parish councils play a key role in the community and are in a good position to help support the village hall. They are concerned with representing and meeting the needs of local people. They have the power to "precept" from local residents (i.e. raise their own money through an element of your local authority's council tax system). This can be used to help pay for improvements in local facilities and services within the community. Parish councils can also take out loans from the Public Works Loan Board, (www.pwlb.gov.uk/pwlbpclending.htm) to help improve facilities and assets, such as halls, that are owned and used by the community.
Parish councils can work with halls in a number of ways:
- Regularly providing funding for hall maintenance from the precept so the management committee plan more effectively for both regular and intermittent expenditure
- Providing capital funding towards repairs or extensions
- Helping the governance of the hall by appointing a parish councillor onto the management committee
- Using the hall for committee or public meetings
- Helping to identify local needs through village appraisals or parish plans
- Helping to develop new activities by arranging joint meetings or providing small pump priming grants to those who want to take ideas forward
Contact your adviser for a copy of Village Hall Information Sheet 2 ‘Parish Council Help for Village Halls’ for further information.
Lottery Funding
Lottery Funding is delivered through a number of different programmes under the name of the BIG Lottery Fund as well as through The Heritage Lottery Fund and Sport England. Details of all the programmes are available at www.biglotteryfund.org.uk. Contact your local village hall adviser for help in establishing which programmes are suitable for your hall.
Small grants are available through the lottery programme Awards for All. It is aimed at local communities for projects that extend access and participation, increase skill and creativity and improve the quality of life.
- Grant type: UK-wide. Joint lottery distributors programme.
- Grant size: £300 - £10,000
- Criteria: Grants available to organisations whose annual income is not above £20,000 a year.
- Application window: Applications may be made at any time
For more information visit the Awards for All website at www.awardsforall.org.uk/england/england_main.html or telephone 0845 600 2040
Communitybuilders Fund
Communitybuilders fund supports organisations at the heart of the community with finance, training and resources www.communitybuildersfund.org.uk
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