Community Arts project

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I've been set a project at university and I need to find out some financial issues regarding developing a community arts project aimed at helping children who have difficulty reading and also emotional difficulties and in setting this up I have to find out how I'd fund such a development and was wondering if anyone had any experience in setting up a community arts project? also does anyone have any ideas which can be implemented in the project to help the children interact with each other and potential staff? I also want to ask any UK mylot members if they know of any grants which may be able to kick start the project or even a place where I may find some advice on grants for community arts projects? Any help would be gratefully appreciated.