Once they have received the funding the local authority will allocate individual sums to each facility so as to provide the best level of services to both the local community and visitors to their area.
The local authority can bid for funds from the European Union and grants from the Government Departments.
- The main EC sources for leisure and recreation projects tend to be the European Social Funds and the European Regional Development Fund. This provides the finance for some new schemes as improvement and the development of new facilities.
- Some government departments such as Department for culture, Media and Sport oversee national developments and create a framework within the services that can be operated. Government departments fund and some times supervise the work of many agencies and public bodies such as the Countryside Agency, English heritage and Historic Scotland. These departments are given funds from the central Government organisations. As such local authorities can apply for grants to fund their own facilities and projects. For example last year the Theatre Royal received £40,000 from the Arts Council to help fund productions.
Organisations such as local authorities can bid for these funds to finance existing projects and build new facilities.
Other public agencies and facilities that are in the public sector include
- The Art Council
- The sports Council
- UK Sport
- Sport England
- National Sports Centres
- English Heritage
- Millennium Commission
Private Sector
The private sector is made up of a variety of commercial operators owned by individuals or companies, whose main aim is to generate profits form the services and products which they provide for their customers. The main activities of the private sector in the leisure and recreation industry take place in retail sales, catering, accommodation, entertainment, home-based leisure and health and fitness.
The sources of funding for the private sector in the leisure and recreation organisation often depend on the size of the business and it’s legal identity. A sole trader may start his or her business purely from private savings or gifts from friends and relatives. A large public limited company (PLC) will raise funds by selling shares in the business on the stock exchange, in return for which its shareholders will expect a return on their investment. This is known as a dividend.
There are other types of funding in the private sector.
- Most new or existing business will go to the bank when they are looking for funding. The bank can offer overdrafts, usually the cheapest type of borrowing with the lowest rate of interest. This is for short-term needs that are important with peak and troughs of cash flow experienced by the leisure and recreation operators. Loans can be offered by the bank for longer term needs.
- This includes leasing and hire purchase where equipment is not bought straight away.
- Sponsorship is an important, if uncertain source of income for some sectors of the leisure and recreation industry, particularly spectator sports and the arts. The extent of sponsorship varies enormously, from local builders paying for the match ball for his or her local football team to Carling’s multi million pound deal to sponsor the Premier League in English soccer. The principle however is the same for both the builders and brewery they expect a return on their investment in the form of wider publicity leading to increased sales and profit.
Voluntary Sector
Across the UK it is estimated that there are more than 200 national voluntary leisure groups with a combined membership of over 8 million people. These include:
- Youth and Community groups
- Sports clubs and Associations
- Conservation and Heritage groups
- Touring groups
- Social clubs
- Arts associations
Many voluntary sectors have charitable status since they aim to promote a cause or help individuals rather than make a profit. There are benefits to being a charity, such as exemption from certain forms of taxation and reduction in business rate. Whether the voluntary body are very large like the National Trust or very small like the local playgroup, the funding opportunities and sources open to them are very similar. In many cases, voluntary sector organisations are simply small groups formed to further a common interest or cater for a need in the local community.
There are five methods of funding these include:
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Sponsorship e.g. the sports goods company Hi tech contributes to the printing cost of the YHA while a local Countryside Trust may be sponsored by a local company.
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Subscription from members The RSPB English Heritage and many local clubs receive funds from this source.
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Grants from Central and Local Governments A local council may make a grant to it’s local choral society or tennis club. Last year Plymouth City Council gave £2000 to St Budeaux Tennis Club to resurface it’s courts. The arts council gave grants to individuals and organisations it considers are advancing the cause of the arts.
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Donation and Gift Many people give money to voluntary organisations as donations to help fund a particular initiative. People also leave money, land or property in their Will to organisations such as the National Trust.
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Fundraising Activities such as a car boot sale, jumble sale and raffles are used to generate funds.
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Goods and/or Services Organisations will also raise money through the sale of goods and/or services.
