Managing community funds

Management by the community

Many communities use their own organisations – either existing ones or established for the specific purpose – to manage income from projects.

Communities at the planning stage or already investing income back into their community include:

A community may be required to:

  • identify/create a local organisation which has the powers and capacity to manage a fund.*
  • set up systems and processes for handling money, administration and monitoring.
  • identify community needs; promote the scheme;accept, assess and advise on applications; make payments and monitor the scheme.

*Legal advice is required at this stage to form an appropriate organisation, one option for this is to be fully incorporated with charitable status.

A community managing its own fund requires more local input to develop and implement appropriate management but this enables the maximum local involvement, capacity building and control.


“There are no examples of sustained community empowerment without some such locally embedded organisation, although in some areas this leadership role is achieved by two or more groups acting together. In theory structures like the Scottish `Community Planning Partnerships` could strengthen communities by linking them to decision making - but experience has shown that, without reference to some independent local organisation, community representatives are too isolated to be effective.”

from Scottish Community Alliance - Community Anchor Organisaitons

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