Winning Grants and Raising Funds - Off the Beaten Track

By Policy and Strategy Department, ETC
Mar 2002
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Summary

Increasingly, the chances of winning funds for tourism projects depends on creative thinking and the linking together of objectives to broaden the benefits of the development you are promoting. Finding public funds to support tourism development by itself is difficult. This is due to the Government's belief that tourism as a sector does not need as much public sector support as others do.

In fact, the true mechanics of tourism management in this country demonstrate that, despite the presence of successful private operators, the tourism sector does need governmental support. One only has to look at the turn around in Cornwall's tourism fortunes following the success of the Lottery-funded Eden Project to see just how important these factors really are.

Tourism, if it is to be a successful business sector, needs to rely upon the quality of the publicly-owned component of the product. If privately-owned attractions and elements of the accommodation sector are to survive and prosper, they have to be augmented by well-maintained natural and built environments, sound transport infrastructure and interesting cultural backdrops, as well as a warm welcome from the community residents of destinations. Without these core components, the private sector side of the tourism industry will not survive in the long term.

Therefore, the key to successful funding for tourism-related projects is the appreciation of how tourism developments benefit the wider community. This wider awareness demands a multi-layered approach to tourism development – thinking outside the tourism box. Only by embracing this concept will tourism managers and operators be able to unlock the treasure-trove of potential funding opportunities.

As hardened fundraisers know, the job of winning grants and raising funds for projects is almost as much about lateral thinking as it is about knowing what's available and how to apply. There are various funds and grants available for tourism-related activities but they are competitively sought and to win them an operator needs to appeal to the priorities of the fund and grant-givers.

Increasingly, the chances of winning funds for tourism projects depends on some creative thinking and the linking together of objectives to broaden the benefits you are promoting. For example, can your project be presented as sustainable in financial and environmental terms? Does it key into the wider fund-appealing factor of economic regeneration? Is it helping to promote access so that everyone from all walks of life and with all levels of ability can enjoy the experience?

A year ago, the ETC embarked on a unique, two-year partnership with Profunding, an organisation that offers fundraisers online access to a great deal of useful information, via their website, www.fundinginformation.org. As part of the partnership deal, the ETC was given 500 passwords to the subscription-only site to provide them free to noncommercial organisations involved in tourism-related fundraising. So far, about 300 passwords have been taken up. The rest are just waiting to be put to good use.

A password towww.fundinginformation.org is effectively a free subscription to a vast amount of information:

  • details of the latest funding opportunities from all five National Lottery Boards, European Funds, and newly-registered grant-making trusts and charities;
  • full details of application procedures, deadlines and contact information;
  • summary details of eligibility criteria and any useful information on the organisation/fund, by distilling the jargon to get the essence of what the funders require;
  • the bigger fundraising picture through analysis of trends in fundraising and government policy;
  • articles, news and case studies from the wider world of funds and fundraising, specially prepared by experts in their field;
  • links between items on the site, to help create a comprehensive view of a particular fund or topic;
  • links to other relevant fundraising websites;
  • a fortnightly bulletin with late-breaking funding news;
  • an email alert service, notifying subscribers when the fund has been updated;
  • an archive of past funding information so you can see who is funding what.

As part of the partnership with the ETC, Profunding have added tourism-related articles and advice accessible only to the ETC-nominated organisations. This funding information and advice is arranged according to the type of projects that require investment, for example seaside resorts, countryside developments, projects with sustainable aspects, arts and tourism initiatives.

Creative thinking, proper planning and serious funds are all part of the dynamic that is needed to secure the improvements to breathe new life into England's coastal resorts. Profunding's advice for resort managers is that "Rebuilding tourism infrastructure cannot be achieved in isolation from revitalising whole communities. Resorts which do better than others overall have realised that a strong local economy is a mixed one, and is achieved by working just as hard at the detail as at the bigger picture".

The funding opportunities depend increasingly on how a community argues for its needs, not for the needs themselves. For instance, the public sector may be able to get funding for environmental improvements, job creation, promoting life-long learning or better health. This degree of lateral thinking is fundamentally important.

A range of funding opportunities for resorts include EU funding in the form of European Structural Fund (ESF) priority areas. Cornwall, for example, is in the ESF Objective One area. In the latest round between 2000 and 2006, there is more than £3.7 billion available for Objective One projects.

The European Social Fund Objective Three areas focus attention on staff and skills, which is an issue in many coastal resorts. Some £2.5 billion has been made available for projects relating to skills and jobs under this programme.

The advice is to look outside the obvious. There are a range of funds available through central government department initiatives which focus on a raft of complex social and economic problems that need urgent attention.

Six government departments (Trade and Industry, Transport, Local Government and the Regions, Environment, Food and Rural Affairs, Education and Skills, the Health) – all have initiatives that direct money to needy areas. Coastal resorts often fall into the required levels of deprivation that trigger funding. Local regeneration projects of all kinds involving health, education, skills training and employment can have a beneficial effect on tourism.

Another possibility is the New Deal for Communities. The prospects are good for coastal resorts to receive funding through these ten-year programmes. Brighton and Hove, for example, has been successful in developing a partnership under the New Deal.

But there are many other opportunities: the Government Regional Venture Capital Fund; the Community Investment Fund; the Enterprise Fund; not to mention the significant opportunities for voluntary and community organisations under Lottery funding schemes such as The Community Fund and the New Opportunities Fund.

Putting forward projects that have the hallmarks of sustainability or 'wise growth' can also be a winning formula in attracting support for tourism in a given area. Sustainable tourism management and wise growth are about managing tourism's impact on the environment, communities and economy of destinations in a way that is beneficial for future generations.

Sustainable development is a key issue across local and central government, particularly in DEFRA which has taken up the mantle of responsibility for promoting sustainability from the former DETR. It is also a major factor in achieving EU funding support.

A good example here is the case of a group of women in a former mining town in Derbyshire who had campaigned for many years to have the town's swimming baths reinstated. The project was not high on the District Council's list of priorities but the campaigners were stubborn and eventually the council enlisted the support of consultants to look at the feasibility of the project.

The consultants came up with a radical proposal which centred on the notion of a larger-scale project, such as a Healthy Living Centre, which might be able to deliver the swimming pool within the Council's financial targets and offer other benefits as well.

The consultants drew up a model that could be supported by a much wider range of funders than either a commercial or public body could achieve. Built into the model was a considerable amount of voluntary support and also features to ensure that the project was environmentally sustainable.

As a Healthy Living Centre, the project had a chance to attract funds from a range of supporters, including Sport England; New Opportunities Fund Healthy Living Programme; the EU Coalfield Funding; Energy Saving Trust; Coalfield Alliance Funding; Coalfield Regeneration Trust; and contributions in cash or kind from the local authorities.

In effect, the consultants met the requirements of sustainability. They prepared a proposal that meant that the local authority would be offered the opportunity to provide a community facility which they did not have to manage themselves and for which they could cap their revenue support at an acceptable level. Meanwhile, the local population got the swimming pool, together with a range of other amenities and facilities.

The FMD crisis, compounded by the aftermath of the events of September 11, dealt a devastating blow to the fortunes of many making a living out of tourism in the countryside. The call for more funds for the countryside was never more poignant than at present.

But where and how do rural enterprises find the funds and grants to help improve the services and quality of experience they have to offer? As with the funding for coastal resorts, there is money available through the EU's Structural and Programme funding. LEADER + is of particular interest, as is the INTERREG programme.

Any projects that can be presented as a regeneration programme are most likely to be looked upon favourably by funding bodies – factors such as enterprise development and job creation are particularly attractive. The advice here is to contact the Regional Development Office for the area and your Local Government Office for more details.

Originally through MAFF and now through DEFRA, government money is targeted at areas where "our rural idyll masks serious deprivation amongst marginalised communities across England". Government regeneration money is increasingly being used to assist farmers who wish to develop tourism to complement their core farming businesses.

Profunding makes particular mention of the England Rural Development Programme (ERDP), which includes a variety of funding programmes covering woodland and forestry, countryside stewardship etc, all targeting farmers and landowners.

Profunding has also assembled advice about the various Lottery funds available and other distinctive funds aimed at this sector. These include the Local Heritage Initiative which involves joint funding from the Heritage Lottery Fund, the Countryside Agency and the Nationwide Building Society.

Other programmes include Nationwide Building Society Community Awards; the Community Fund (formerly known as the National Lottery Charities Board); Awards for All (a very useful small grant fund offering between £500 and £5,000); and the New Opportunities Fund (NOF).

At the tail end of the NOF grant programmes, rural tourism enterprises may gain funds from the Green Spaces and Sustainable Communities programme. This is a partnership programme where NOF grants are channelled through third parties; they include English Nature – Wildspace! which focuses on the management and development of local nature reserves.

Another example is Sustrans – Green Routes, Safe Routes, which supports projects linked to Sustrans' sustainable transport programmes.

Yet another funding source is the Countryside Agency which runs a range of programmes to promote economic and social development in rural areas. For those living close to landfill sites there is the Landfill Tax Credit Scheme. There is also the Environmental Action Fund; English Heritage (offering funds for restoration purposes); English Partnerships; and The Waterways Trust.

England's extraordinarily diverse cultural heritage is a central part of the tourist experience. This diversity includes built heritage in the form of castles, stately homes, palaces, country cottages, lighthouses, bridges and much besides, as well as art (museums, galleries, theatres, films, music, literature, religion) and the wealth of visual spectacles offered through pageants, parades, fetes, galas, local carnivals and hundreds of festivals of the arts.

The funding opportunities here are almost as diverse as the art forms themselves but "with diversity comes potential complexity". The problem is where to start.

Developing an effective network of contacts is a key element of this process. This includes regular conversations with them and opting in to their information systems. The principal funders in this industry sector include the Arts Council of England (ACE) and the Regional Arts Boards (RABs).

The ACE is in the throes of a reorganisation, with the aim of giving regions more money and more say in national projects. For tourism projects that have a local or regional flavour, the new regional Arts Council offices (RABS as was) will be important. They will channel a great deal of funding through links with local authorities, business sponsors and European funds among others.

The Regional Development Agencies and Metropolitan or District Councils are also worth contacting.

ACE has also just started a new initiative called Creative Partnerships which brings together the traditional ACE-led arts funding system with other funding partners in an area. From April 2002, £40 million has been allocated to 13 locations to develop this scheme: the Black Country, Bristol, Cornwall, Durham, Kent, London, Manchester, Merseyside, Norfolk, Nottingham, Slough, South Yorks and the Tees Valley.

Other routes to funding may not be so obvious, including, for example, a relationship between the arts and health. If a project can demonstrate measurable community health benefits, the local Health Authority or Primary Care Trust may provide support, especially in the Health Action Zones. Then there are possibilities through the Lottery, especially the Awards for All scheme, and real possibilities for business sponsorship by enlisting the support of Arts & Business.

Again, the theme here is – know your market, develop your contacts and maintain them well.

To register for a free password, please log onto www.englishtourism.org.uk and follow the Profunding and ETC link to apply for a password online. Alternatively, if you already have a Profunding password, refresh your funding knowledge by logging onto www.fundinginformation.org.