Microgrants: A Hot Topic of Conversation

Foundation Scotland delivers Hot Topic Takeaways for groups running community ‘microgrants’ schemes

The world of microgrants can generate serious conversations around meeting tables, especially when community groups come together to make awards.  And last year an estimated 1,000 volunteers across more than 160 community councils and local groups across Scotland were involved. They received more than a quarter of a million pounds from community benefit funds that Foundation Scotland administers, awarding hundreds of small ‘micro’ grants (£250-£500) to local groups and volunteers.  

To assist these decision-making groups, Foundation Scotland’s Communities team ran a best practice webinar to bolster the fantastic efforts of volunteers running microgrants schemes in all corners of Scotland.  Focussing on good governance, fair decision-making and common dilemmas, the webinar was designed to help community councils and other local groups to maximise the impact of local microgrants schemes.

Microgrants provide a flexible means to access funding for un-constituted groups and individuals which may not otherwise be available.  These small ‘micro’ grants usually range from £250 to £500 and are administered primarily by Community Councils or similar types of organisations that are anchored in the community.  Groups running microgrants schemes typically receive a recurring sum of money at an agreed rate from the main Community Benefit Fund for onward distribution. Microgrants schemes can support a range of projects and new ideas, channelling money deeper into communities and spreading the impact of community benefit funds from onshore wind farms and other renewables.  

Like other forms of grant-making and fund administration, microgrants schemes can come with their own set of unique challenges, and that is where Foundation Scotland aims to support the groups responsible for administering them.  In August 2024, the Foundation Scotland Communities Team delivered ‘Hot Topics: Good Practice for Microgrants schemes'.  

Key topics focused on areas where Foundation Scotland has received multiple enquiries and requests for support and included good microgrants decision-making practices, microgrants promotion and accessibility, microgrants to individuals, what is considered charitable, and articulating community benefit.  

As we had such a wide-ranging and large audience participating, delivering an all-encompassing agenda was vital, as there was a clear interest in raising awareness and gaining valuable skills associated with microgrant administration.  

The seminar was well received with 67 people attending from the length and breadth of Scotland from Caithness in the north to Glen of Luce in the South.

Chris Lee was part of the Foundation Scotland delivery team:

“Making decisions around who receives small community grants and who sometimes doesn’t, can be quite intimidating when you're a member of that community. Local decision-makers are aware that what they decide has a direct effect on their neighbours, friends and others and that effective decision-making needs to retain the confidence of the wider community. But equally that small grants like this can take a bit of risk, funding new ideas or trailing different activities that might pay off for the community in the long run – anything that encourages volunteering and civic activity.  The session aimed to provide positive, supportive guidance and build confidence around the key parts of the microgrant distribution process so that Community Councils and others can continue to do their best for their communities as a whole. This helps ensure that money is getting to those that need it and that the funds available are bringing people together to serve and celebrate communities to make them stronger.”

As an organisation, Foundation Scotland seeks to empower communities.  We recognise that by providing groups with the tools they need to deliver their own microgrant administration processes, this will enable them to make confident decisions and promote their funds, building a stronger and more resilient community which long term creates a thriving place to live, work and play.

We’ll be updating our Microgrants Guidance soon, and continuing the debate about whether it's ‘microgrants’ or ‘micro-grants’.