Public money is an important source of income for voluntary and community organisations. Public funds are raised by government through taxation and distributed through a vast array of bodies in the form of contracts and grants.

Public money pays for a wide range of activity from national childcare services, projects to resettle ex-offenders, health promotion, local arts and environmental projects to activities promoting neighbourhood wellbeing and community safety. But as government priorities change, it’s often difficult to find out who funds what. On top of this a trend toward local authorities becoming purchasers rather than providers of services has meant a shift away from traditional grant aid and toward contract-based arrangements. And these often come with a lot of strings attached.

This overview aims to provide some basic and introductory information exploring some of the key issues involved with public funding.