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Community Fund

Big Lottery Fund
Non-departmental public body
Predecessor Community Fund and New Opportunities Fund
Founded 1 June 2004 (2004-06-01)
Key people
Dawn Austwick, CEO
Website www.biglotteryfund.org.uk

Big Lottery Fund is a non-departmental public body responsible for distributing funds raised by the National Lottery for "good causes". Since 2004 it has awarded over £6 billion to more than 130,000 projects in the UK.

Big Lottery Fund aims to support projects which help communities and people it considers most in need. Over 80 per cent of its funds go to voluntary and community organisations, it also makes grants to statutory bodies, local authorities and social enterprises.

Big Lottery Fund makes grants to projects working in health, education and the environment and the charitable sector. It funds projects in line with objectives set by the government but does not fund services which other parts of government have a statutory responsibility to deliver.

According to its Annual Report, Big Lottery Fund uses the following definition of "additionality": "Lottery funding is distinct from Government funding and adds value. Although it does not substitute for Exchequer expenditure, where appropriate it complements Government and other programmes, policies and funding."

The income of all the Lottery distributors comes from the sale of National Lottery tickets. Of every £2 spent on a Lottery ticket 56 pence (28%) goes to the "good causes". The current operator of the National Lottery is Camelot.

Big Lottery Fund is the largest of the Lottery distributors, with an income of about £600 million a year. The Fund is responsible for distributing 40% of funds raised for "good causes" (roughly 23 pence of every £2 spent on a Lottery ticket).

Big Lottery Fund does not operate projects but allocates funds to organisations which operate projects. As part of the application process for funding, the Fund requires funded organisations to outline the difference that should come about as a result of its funding.

The Fund uses several methods to distribute funding. Most of its grants go to voluntary and community organisations which apply within a range of funding programmes. However, in certain cases to meet a specific need, the Fund will also seek applications from organisations with recognised expertise or make a substantial grant to a partner to award funds on its behalf.

Big Lottery Fund came into being on 1 June 2004, with the merger of two Lottery distributors – the National Lottery Charities Board (whose operating name was Community Fund) and the New Opportunities Fund. Big Lottery Fund was formally established by the National Lottery Act 2006. The Act gave the new body the extra responsibility of managing projects funded by the Millennium Commission.


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