Forex fines to be used for good causes
- Friday, 14 November 2014 10:15
Fines levied frim the banks from the rigged forex rates are likely to total £1.1bn. NCVO would urge the government to ring-fence the forex fines for support for local community groups.
The government’s Endowment Match Challenge has helped raise £150m for local voluntary organisations and community groups. It incentivises philanthropy and provides sustainable funding for local voluntary organisations and community groups.
However, it is due to end in April 2015. The money raised from the forex fines could be used to extend the match fund and support more local communities.
Commenting on the announcement, NCVO’s chief executive Sir Stuart Etherington said:
We welcome the government’s decision to use the forex fines for good causes. Many charities have seen their funding reduced over the past few years.
It is important to ensure these funds leave a lasting legacy. We believe the money would be better channelled through existing mechanisms, such as the Endowment Match Challenge, and avoid setting up new, costly scheme to administer.
The Endowment Match Challenge incentivises local giving through a 50% match from government. It is delivered through community foundations, which make setting up an endowment easy.
£50m funding was available for match funding until March 2015.
NCVO has called for an extension of the endowment match challenge to support local communities in our manifesto, A Bigger Difference. It features a case study of how the match challenge has supported a disability charity to buy specially adapted bicycles for children.