Our new report looks at the effect of grant funding received during the Covid-19 pandemic on small and micro voluntary, community and social enterprise (VCSE) organisations in Greater Manchester.
During Covid-19, funders provided extensive emergency funding to support communities in need, resulting in a substantial number of previously small and micro-organisations rapidly scaling up their activity.
The majority of the organisations did say that the increase in activity and grant funding originally had a positive effect on their organisations. However, 64% of those organisations are now facing significant challenges, many of which are as a direct result of the increase in community need and way the increased grant funding was distributed during the pandemic.
Funding was distributed very quickly without much co-ordination amongst funders. Funding was often redirected away from usual activity and aimed at emergency support, leaving a gap in funding for general running costs.
