"With Futurebuilders, it's a matter of whether it does a high turnover of bigger deals rather than developing grassroots capacity to deliver government contracts," he told Third Sector. "When it started out, we thought it would be about those grassroots organisations."
Hayday said that giving out loans quickly increased the risk of making mistakes.
"We see examples of Regional Development Agencies and other funders that have required money to be spent too quickly, and people have repented at leisure," he said. "The problem is that quick spending leads to unsustainable projects being funded."
Hayday was explaining a passage in Charity Bank's latest annual report, which warns that the Government might have "some way to go" in developing its relationship with civil society.
"This was one of the factors behind our decision not to re-tender for the Futurebuilders Fund contract," it reads.
Charity Bank was one of the four founding members of the consortium that ran Futurebuilders until the contract was awarded in April to the Adventure Capital Fund, which has pledged that the application process will be speeded up (Third Sector, 9 April).