The new Community First endowment, which aims to raise £150million to be invested to secure the future of local community projects in England, has been launched by Nick Hurd, Minister for Civil Society today.

The Government will give 50p for every £1 raised from individual, corporate and philanthropic donors – pledging up to £50 million in total.

This combined with Gift Aid tax relief will create a pot worth in excess of £150 million.

The money will be invested and the return, expected to be up to £12 million per year, will be used to provide grants to local community and social action projects from 2015 onwards.

Donations have started with Arthur Green contributing to the Big Society endowment – he is a long-standing donor to the Sussex Community Foundation.

This donation builds on his existing commitment to support local communities in Sussex through the Arthur & Doreen Green Fund.

The income generated by the fund will provide a contribution to the financial needs of some of the many worthy and deserving causes that exist throughout East and West Sussex.

The Community Development Foundation (CDF), which manages Community First, is working with local Community Foundations in the Community Foundation Network (CFN) to raise more money for the endowment.

Nick Hurd, Minister for Civil Society, said: “It’s time we invested in our future rather than borrowing on it. The Community First endowment will be a lasting source of money to help local community groups achieve what they want, whether that’s turning wasteland into parks, holding social events for older people or starting sports clubs for the young. This is money on the ground for the Big Society and the 5000 Community Organisers we are training will encourage people to get together and use it.

“Some of the oldest charities in the country are founded on endowments invested many hundreds of years ago which still pay out for good causes today. This is a chance for people like Arthur Green and businesses to be part of something really special, an endowment for the nation.”

Arthur Green said: “My late wife Doreen loved children but sadly we were not blessed with any of our own. As the sole surviving family member our line would have ended with me – but now through giving to the endowment our legacy will live on.

"I am pleased to extend my support to the Community First programme as this will make a real difference to the lives of others."

Alison Seabrooke, chief executive of CDF, said: “CDF, working with CFN, is delighted to open the Community First Endowment Match Challenge. With over 40 years of experience in supporting communities, CDF knows that funds invested at a local level can have real impact in helping people take positive action on issues that matter to them.

"This model of financing community investment, using Government funds to encourage philanthropic, individual and corporate giving, is one we know works well. The endowment will provide a long term, sustainable source of funding for social action projects for years to come.”

Stephen Hammersley, chief executive of Community Foundation Network, said: “Now more than ever local communities, causes and charities need support they can depend on for the longer term – the kind of support that endowed funds can provide.

"Community foundations also understand how supporting and sustaining long term change can be rewarding to philanthropists and companies who have an interest and stake in the development of local communities. The match challenge will help more people discover how rewarding this can be and we are pleased to be part of delivering Community First.”

This year, the Community First fund will also pay out £30million in small grants to community groups and local social action projects in the 600 communities in England which need the support most, through the Neighbourhood Match Fund.

People in these communities are being asked to form local panels to distribute the funds themselves.

ASDA has pledged its backing through in-store promotions, by allowing communities to use its stores as meeting places for community panels and through its existing community investment strategy.

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