The distribution of regeneration cash doesn't have to be all about form filling, reporting systems and highly paid consultants. Heather Greig Smith examines some innovative methods of handing out grants.

Fast and Fresh Finance
Money makes regeneration go round, and in the last few years, there's been a lot of spinning. Government funding, council cash, lottery handouts, European money and regional development agency (RDA) grants have been there for the taking, with every funder keen to show how their dedication to community consultation is matched only by their commitment to efficiency and value for money. For those seeking funding on the other hand, securing resources is often a tortuous process. But not everyone with money to hand over decides to do it in such time-consuming conventional ways.

Below are three case studies of organisations [abridged-Ed.] that have innovated, taking funding decisions to the grassroots level and making almost instantaneous decisions on spending. "Who is to say that's not better than the incredibly deliberative process we all go through to get money?" asks Sarah Benioff, chief executive of the charitable Community Development Foundation. "The whole field of grant-giving could be more creative and inclusive". The amount of money involved in all three examples is small, but the level of community involvement is high. Reacting to a perception that community members become disillusioned unless there are quick results, the architects of all three schemes have emphasized fast decision-making and informal rapid-fire deliberations.

Of course not everyone is in favour of quick-fire decision making. While accepting that the examples featured cut down on the need for long, drawn out processes, Simon Danczuk, managing director of consultancy Vision 21, adds a note of caution. "The problem is that you are collecting people's immediate reaction to what they think money should be spent on," he says. "I suspect that if you gave it more thought you'd come up with very different ideas as to what the needs of the community are". Even if the community is being heavily consulted, how do you ensure that those making the choices are representative of the group they are making decisions for? "No matter who you get, they can't be representative of everyone," says Benioff. "They end up representing their own interests a little more heavily than they should." She said this is where good control and mediation from those holding the purse strings is essential. Despite the drawbacks, there are massive benefits to be gained from community decision making over the distribution of small amounts of money, says Danczuk. "It takes away the idea that only councils make decisions and empowers the community."

Philanthropists United
"Basically we're a network of givers and potential givers who want to help to effect social change," says art dealer and philanthropist Frederick Mulder, who set up The Funding Network with three friends in 2001. The four were members of a foundation that donated money, but wanted to set up a network that is open to everyone and is financially transparent. Since it's inception, the London-based network has raised more than £300,000 at its events. Members commit to giving at least £1,000 a year through the network [this policy has recently been changed - there is no annual giving commitment but a small annual fee-Ed]. They can then propose groups which are in need of funds and fit in with the network's ethos of social change. Eight to ten groups attend each event to present their work or ideas. Anyone can attend meetings, which take place several times a year, and donate to any, all or none of the organisations. After presentations and time for the members to talk to the groups pledges are called out. "We raise £40,000-£60,000 each day we do it," says Mulder.

Among those who have got money is micro-finance organisation Street Cred, a 2003 British Urban regeneration association award winner, which backs women in east London entering into business.

For Chrissey Townsend, the network paid for her to train at a school for social entrepreneurs, so she could extend the activities of her community group in the Teviot estate in London's East End. The Teviot Action Group runs after school clubs, IT training, sports groups, arts and crafts sessions and a cafe. Townsend says being able to pitch her work to the network was invaluable. "You're not often able to talk to people who make decisions," she says. "It was really nice of these few people to get together and listen to where I was coming from. Being able to tell it how it is is very important. We need more of this".

Much of the network's focus is overseas development, but Mulder says its direction depends on its members. The downside is that only members can put forward organisations for consideration. A second network has recently been set up in Bristol, and a Scottish version could be in the pipeline. Mulder hopes the idea takes off: "Grant-seeking with foundations is often a bit impersonal. People support people, and it helps if you've met and listened to someone who is going to use the resources," he says.
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