Lottery funding and changing organizational identity in the UK voluntary sector

This paper focuses upon ways in which National Lottery funding impacts upon aspects of identity for small- to medium-sized organizations in the United Kingdom, and highlights some of the less-anticipated difficulties that groups may experience after receipt of a grant. A large Lottery grant can facilitate rapid expansion and may necessitate a degree of organizational learning for which groups are often unprepared. The paper suggests that a Lottery grant may lead to changes in the ways in which an organization identifies itself, or is identified by stakeholders. However, these changes may not be accompanied by a corresponding change in the organization's capacity or underlying cultural ethos. On the basis of the primary research carried out in 2003, the paper examines the implications of these changes for individual organizations and for the sector more widely. © 2004 International Society for Third-Sector Research and The Johns Hopkins University.