Written question WQ97908

Welsh Government is investing in grassroots voluntary organisations and community groups through our £8.6 Million Third Sector Support Wales infrastructure funding. This supports organisations and initiatives involving funding, volunteering, and good governance, which in turn helps strengthen community resilience and support deprived areas across Wales.

TSSW provides important and valuable services to the voluntary organisations working with the communities and people most in need of support across Wales. Welsh Government is aware these crucial organisations are facing an increased demand for services, pressures on income, rising costs and challenges with the recruitment and retention of staff and volunteers.

Welsh Government also core funds Community Foundation Wales to source philanthropic donations and administer and distribute sourced fund to align with our priorities for tackling deprivation, strengthening community resilience, and promoting sustainable voluntary sector growth. Since 1999 they have awarded more than £40 million to support grassroots projects and charities across Wales.

We are also working closely with our partners in the third sector to improve the environment in which they operate through the co-development of an updated Code of Practice for Funding the Third Sector and a New Approach for Volunteering. This will make it easier for them to play their crucial role, especially in areas of prevention which are so key to tackling the issues of our most deprived areas.

Since 2022 we have had a longer duration of funding policy, which responds to concerns from the third sector, that grants are often be based on a one-year basis. The Welsh Government Cabinet has recommitted to this policy in 2025.

All funding provided to the third sector from the support for the voluntary sector and volunteering budget has been made under three-year funding agreements. The revised Code of Practice for Funding the Third Sector was published in April 2025 and makes the case for an increased use of longer-term funding where this is appropriate.

We are clear that longer-term funding has significant benefits for all concerned. It provides financial and employment security, allows for better planning and cuts down on administrative burdens. It also improves service provision by helping with the recruitment and retention of experienced staff and volunteers.

To ensure we have as complete a picture of possible, working with WCVA and Nottingham Trent University we have developed and launched a third sector barometer. This will provide a series of data points which will provide an insight into the health and sustainability of the third sector in Wales. This will also, over time, allow us to track the impact of policy decisions on the sector’s sustainability.