The Government is underestimating the cost of grant-making as well as of delivering services, according to a new study.
The LSE Centre for Civil Society report The Price of Giving researched the costs of grant-making among community networks in the UK. It found that the more grant-makers tried to involve "hard to reach
groups, the higher the unit cost per grant became.
Identifying and training local people in order to get them on grants panels, and helping tiny groups to fill out application forms took time and money, said Gaynor Humphries, director of the Community Foundation Network.
"It's not fair and proper to expect a charity to use its own funds to subsidise government services,
she said. "This applies not just to service providers, but also grant-makers."
Government funding streams are increasingly being channelled through community foundations in an attempt to get money down to the grassroots.