The Grassroots Grants scheme is offering not-for-profit community organisations a slice of £750,000 - money that has been awarded to the Cambridgeshire Community Foundation (CDF).

Grants of between £250 to £5,000 will be made available to groups who have an income of less than £20,000 a year, and the money can be used in a number of ways, from helping buy equipment to paying for staff and rent costs.

The programme is funded by the Office of The Third Sector in the Cabinet Office and administered by the Community Development Foundation.

CDF chief executive Alison Seabrooke said: "Grassroots Grants is exciting as it provides funding for community groups now and into the future. Grassroots Grants reaches out to grassroots groups which may have never even considered applying for grant funding before. The endowment match challenge enables local funders to continue this funding over the long-term, giving small community groups a real future.
"Grassroots Grants is all about building a strong, independent third sector, and the Community Development Foundation is delighted to be administering such an innovative programme."

The endowment element – which is also open to individual investors – aims to ensure that that grassroots grants remain available for many years to come. It is estimated that with match funding and sound investment this £50million will be worth £150million when it starts paying out in 2011. In addition, as Gift Aid can be claimed on donations to a charitable cause, a £1,000 match-funded contribution from a business would be worth £2,560 to the fund.

Minister for the Third Sector Phil Hope said: "Cambridgeshire is full of small groups and individuals who work tirelessly to tackle local problems and part of this £130 million fund is dedicated to supporting their efforts. Grassroots Grants will put essential cash in the hands of small local voluntary groups without all the paper work required for larger grants.

"I urge local leaders and businesses to make an investment in the future of their community by contributing to the new endowment funds. Every penny that goes in will return a much greater value, particularly as donations will also be eligible for Gift Aid."

Cambridgeshire Community Foundation is one of 68 local funders who will distribute grants directly over the upcoming years, selected because they are familiar with the needs and causes in the area.