The government has launched a £130m scheme to encourage businesses to pledge support for community causes.

The Grassroots Grants scheme, launched on Thursday, offers community schemes grants of between £250 and £5,000 – and is asking businesses to match the donations.

The government has set aside a £50m pot to match investments from businesses, and said it offers firms the opportunity to ‘make a lasting contribution directly to supporting and sustaining the communities in which they work’.

The cabinet office said businesses can make a ‘real difference’ to the work of small and local community groups – from helping local clubs to buy new kit to ‘simply giving the village hall a fresh lick of paint’.

Phil Hope, minister for the third sector, said the scheme will put ‘essential cash’ in the hands of small local voluntary groups without all the paperwork required for larger grants.

“Our communities are teeming with thousands of small groups and individuals who work tirelessly to tackle local problems and this £130 million fund is dedicated to supporting their efforts,” he said.

“I urge local leaders and businesses to make an investment in the future of their community by contributing to the new endowment funds. Every penny that goes in will return a much greater value, particularly as donations will also be eligible for Gift Aid.”

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