The fund will target groups that provide legal advice in a sweep prompted by press coverage about the National Coalition of Anti-Deportation Campaigns and the Community Empowerment Network, both of which have received lottery funding.
"We didn't like the Community Empowerment Fund web site", said head of public affairs Boni Sones. "If you have an organisation working on school exclusion, there is no need to include a page on terrorism."
"We were so concerned that even though we don't now fund the organisation, we had to tackle this in a big way."
NCVO supported the Community Fund's stance. "We have always maintained that organisations that receive lottery funding must be acting within the law and meet all the recommended guidelines,
said director of public policy Campbell Robb. "We welcome the fact that the Community Fund appears to be doing everything it can to ensure this is the case."
But Margie Butler, director of the London Advice Service Alliance, which has developed a web site for welfare benefit advisers using a Community Fund grant, expressed doubts about the fund's investigation.
"I'm concerned what the remit will be,
said Butler. "There was already a rigorous examination when we applied for a grant. This is extra monitoring that we haven't been consulted about. It seems to be an overreaction,