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ABSTRACT
The debate about the funding and support of civil society by government bodies has become a central and politicized issue in many countries. European states in particular have sought to make use of civil society to deliver key supra-national policy aims of addressing economic and social disadvantage, as well as delivering national and territorial outcomes. To this end European structural funding has been used at a regional level to develop and engage organizations and their beneficiaries. One of the key considerations in such activity is the ability of civil society organizations to engage with the funding available, and whether structural barriers exist that potentially prevent organizations with relevant expertise participating. In order to illustrate this, this article investigates how civil society organizations fared in gaining funds from the 2007–2013 European Social Fund (ESF) programmes in Wales, what, if any, barriers were found to exist in acquiring those funds and what this means for the sector in Wales in the context of future funding. The wider significance of this work is in revealing how the structural embeddedness of organizations plays a significant role in determining organizational success in gaining ESF funds, and how this contributes to a cleavage in the sector as a whole. Thus, this article concludes that it is organizations that are structurally embedded that will be most successful in gaining ESF funds, due to their organizational characteristics and their institutionalized relationships with, and receipts from, the state. Other organizations, conversely, are shown to become structurally excluded.