The new name brings together the sector's main lottery funder, the Community Fund, and the New Opportunities Fund, which has its funding priorities dictated by the Government. The two are "working closely together" to distribute half of the money put aside for good causes from the National Lottery, prior to legislation to formally merge the two.

The launch follows the appointment on Thursday of an interim board, who will oversee the fund for the next 18 months. Half of the new board come from the New Opportunities Fund and Community Fund, with the other half newly appointed. Arts and Lottery Minister Estelle Morris welcomed the appointments, and said that the board would "play a key role in developing innovative ways to involve the public in the big choices about how to award lottery grants".

Those on the board are: Dame Valerie Strachan, as Vice-Chair, David Campbell, Roland Doven, John Gartside, Douglas Graham, Dugald Mackie, John Naylor, Esther O'Callaghan, Anna Southall, and Diana Whitworth. Six more Board members will be appointed following recommendations from the devolved administrations in Wales and Northern Ireland.

Meanwhile, there is continuing concern in the sector over the independence for lottery funding. NCVO warned before the weekend that the principle of additionality, which stipulates that lottery money should not subsidise government spending on public services, remains under threat. It expressed disappointment that the Department for Culture Media and Sport last week rejected calls for the Secretary of State to make an annual report to Parliament on how the principle has been applied. The suggestion was made in the Culture Media and Sport Select Committee's report earlier this year.