Small Money, Significant Impact? Village Funds, SDGs, and the Limits of Participatory Governance

The village fund (fundusz sołecki) in Poland is a participatory governance mechanism for local community engagement and addressing community needs. It is organised voluntarily by municipalities within auxiliary administrative units, which most commonly cover individual villages. Residents prepare proposals for small-scale projects that involve activities or investments in public spaces within their administrative units. After formal verification, these projects must be implemented by the municipal office in the following financial year. This study aims to examine the geographical dynamics of village fund introduction across Poland, assess their significance for local communities, and identify their opportunities and constraints. Our analysis utilised national data from Statistics Poland, data obtained from a case study municipal office, and telephone interviews with village administrators. Local projects, despite their small scale, can positively contribute to the implementation of SDGs in rural regions, especially SDG 3, 11, and 16. They can enhance residents’ well-being through the development of safe and inclusive public spaces, social inclusion in local planning, and activities that engage and integrate local communities. However, successful implementation requires a baseline level of social activity to foster cooperation among residents during the project preparation phase. Village funds alone are an insufficient incentive for participatory governance in exceptionally passive communities. In such cases, traditional community development approaches involving professional facilitators may yield better results.