Voluntary, Community and Faith Sector Community Grant Funding Policy 2022 - 2024

1. Introduction 

This Policy sets out our priorities and approach for the funding of our local Voluntary, Community and Faith Sector (VCFS) organisations.

You can download a copy of the Voluntary, Community and Faith Sector Community Grant Funding Policy 2022 - 2024 (PDF, 119 KB).

The Council recognises the contribution that the local VCFS makes both towards the quality of life of local people and in ensuring that all members of the community have a voice.

This Policy aims to ensure best use of the limited funding available to support the work of the VCFS to deliver high quality outcomes for Preston residents, through a fair and transparent process to support the Council achieve this aim.

A consultation process carried out in 2021 with the VCFS and as a result, the Council identified priorities areas for funding in 2022/2023 and 2023/2024 if funding is available.

2. Scope 

This Policy applies to the allocation of grants to Voluntary and Community Sector Organisations through the Council's VCFS grants programme. It does not apply to any other means of financial support from the Council that may be available under other schemes.

This Policy will be utilised by Officers to guide decision making around the VCS Grants Programme. Officers may apply discretion to the Policy in exceptional circumstances if it is deemed appropriate.

3. Purpose

Preston City Council is committed to supporting Voluntary and community sector organisations to help them deliver projects and activities, which have a positive and beneficial impact on the local community and its residents.

Funding will be utilised to reach the most vulnerable and disadvantaged people in our communities to enable them to access the support and services they need in the following areas:

• Digital Exclusion
• Health Inequalities
• Financial Inclusion

The Council is keen to invest in local organisations that are in a position to provide high quality services and to make a significant contribution to the priorities above to achieve well-functioning and cohesive communities.

4. Basic Eligibility Criteria

In order to be considered for funding, organisations will need to meet the following eligibility criteria:

• Any constituted VCFS organization or community group operating in the City can apply provided they have a constitution, articles or rules describing the group's aims and objectives, its member, and details how decision are made
• Be based in the City of Preston and provide services/ activities for the sole benefit of Preston residents for the funding awarded.
• Have a constitution or other governing document and have a governing body whose membership reflect and contain a representative proportion of people who live and work in Preston.
• Have a bank account in the name of the organisation or group, which requires at least two joint signatures who are not related for all transactions.
• Have the necessary policies and procedures that fulfil legal and financial requirements e.g., accounts, health and safety, equal opportunities, insurance,safeguarding and compliance with employment legislation and good practice.
• Have the capacity to meet the Council's requirements for delivering performance monitoring and accountability for the use of public funding.
• Be providing services to a significant number of Preston residents.
• Be able to provide good quality services, with accreditation where appropriate.

5. Not Eligible

The Council will not fund:

• Statutory and mainstream bodies
• Organisations that have a nature of a political party or political lobbying organisations
• Religious organisations for the use of propagation of religion
• Individuals
• Capital projects e.g., building or refurbishment work, purchase major items ofequipment
• Services or activities that are the responsibility of statutory bodies.

6. General Grant Criteria

The Council will also apply the following general conditions when consideringapplications. These are:

• All grants must be submitted on an official Preston City Council application form.
• Applications for grant will be administered on an annual basis with a view to continuing into the following financial year if funding allows.
• Applications for a grant greater than £3,000 up to a maximum of £5,000 must include a copy of the organisations last financial years audited accounts (if no recent copy available then the latest year's income and expenditure account and balance sheet certified by the organisations Treasurer will suffice) and annual report.
• Applications for a grant less than £3,000 must include a copy of the organisation's latest income and expenditure account plus balance sheet as signed off by the organisation's officials.
• Applications for grant aid from organisations not supplying audited accounts must supply an income and expenditure account signed off by the organisation's officials and contain original or copies of the organisations last 3 months bank and / or building society account statements.
• Any grant approved will be subject to certain conditions, which must be satisfied before payment is made. This will be in the form of a Service Level Agreement (SLA) for any main grant award and grant agreement with general terms and conditions for small grant award. The organisation must indicate acceptance of such conditions within two months of an offer of grant.
• Appropriate monitoring and evaluation systems need to be in place to measure performance and review the effectiveness of services delivered including finances and expenditure.

7. Assessment Criteria

All grant applications will be assessed using pre-selected assessment criteria. The details of the assessment criteria will be made available to all applicants before they apply for funding.

The assessment criteria as a minimum will include:

• Clear outline of how the purposes for which the grant is made available will be met;
• The outcome(s) that the proposal will achieve;
• The structure and delivery plan that will support the achievement of the stated outcomes;
• The clarity of the proposals financial outline;
• The organisations ability to successfully manage finance by submission of accounts, bank statements and cash flow forecasts as appropriate;
• The approach to health and safety, duty of care, and other appropriate best practice requirements including safeguarding of children and vulnerable adults and the organisations ability to successfully manage these on the project;

Governance and Management

• Strong management and active decision making in overseeing the delivery of services;
• Appropriate staffing to deliver quality services;

Reach

• A track record of delivering services for Preston residents;
• Demonstrate support for those in greatest need including improving representation for communities at risk of exclusion and strengthening new routes for participation and engagement in disadvantaged areas;
• The spread of provision within which wards;
• A planned approach to addressing equalities and diversity issues ensuring they donot discriminate against any group in that they ensure everyone has the opportunity to access their service and that this service contributes towards community cohesion.

Financial Sustainability

• A 3-year track record of financial stability;
• Robust financial controls;
• A track record of securing funding from a diverse range of sources andevidence of the potential to secure funding in the future;
• A realistic budget for the proposed service;
• A realistic development/ business plan to sustain the organisation.

All assessment criteria will be based on meeting need within the community. There will be no predetermined demographic allocation of funds.

In the first instance, all applications will be reviewed to ensure they are eligible for scoring. Applications may be screened out at this stage if they do not meet the eligibility criteria as set within this Policy.

Grant applications will then be assessed by a panel of Officers and External Partners. A scoring matrix will generally be utilised to score applications. A copy of the matrix will be made available in the Guidance Notes for the Programme Unsuccessful applicants will be offered feedback on the strengths and weaknesses of their applications.

Complaints against the process used to award the grant will be dealt with using the Council complaints procedure. There is no right of appeal as to the grant decision itself.

8. Costs

The Council understands that it is difficult to secure funding for core operational costs, particularly in the current economic climate, and that it is not a priority for many funders. At the same time the Council faces a public sector funding challenge which means establishing a clear basis for entering funding relationships and achieve better value for money from limited resources.

Funding support needs vary across the sector, and as long as organisations can demonstrate that the investment enables them to meet any of the three identified priorities, we can be flexible about the costs that are eligible for funding as long as the application is for revenue costs not capital costs.

Organisations will also need to be clear on how the grant money is spent.

As a guide only, the Council will expect to be contributing to the following types of costs:

• Salaries for staff including contribution to managers salary
• Organisation overheads e.g. rent, office costs, utilities etc.
• Insurance
• Volunteer retention, training, and support
• Communications, marketing, and promotion
• Admin and back office functions
• Activity costs.

Note

Preston City Council has a foundation living wage policy and is committed to being a Foundation Living Wage Employer.

The Council will actively promote and encourage all businesses and companies including the VCFS operating in Preston to pay the Living Wage.

9. Performance Monitoring and Evaluation

The Council naturally wants best value from its funding and to ensure the financial support that it gives to organisations makes a real difference to the lives of local people. Successful applicants will be monitored in accordance with the Grant Monitoring Procedure. Monitoring allows the Council to assess whether an organisation is satisfying the terms and conditions of the grant and is able to manage their financial and legal responsibilities.

Self-monitoring reporting will feature, and all grant recipients will be required to produce selfmonitoring reports on progress each quarter, using the Council's monitoring report template.

All grant recipients will be required to produce an end of year Evaluation Report using the Council's template.

10. Grant Promotion

The availability of grant aid will be advertised openly to reach as wide a range of organisations as possible.

The grant will be publicised using a variety of mediums such as the press, voluntary sector networks, newsletters, council website and social media.

11. Application Closing Date

This will be stated in the advert when the grant is advertised.

Organisations will also be advised of the closing date and time.

Applications received after the closing date and time will not be considered.

12. Assessment of Applications

All applications will be judged on merit and scored against a transparent and common weighted system based on the priority being applied for.

Before being considered against the weighted scoring criteria, applications will undergo an eligibility check and ensure all the necessary supporting documents are available.

Incomplete applications or applications that lack the required eligibility criteria or supporting documentation (stipulated in the checklist on the application form) will not be considered.

All applications will be assessed by a panel comprising of officers of the Council and representatives from partner organisations.

In order to be recommended for grant support, dependent on the amount of grant request, applicants must meet the minimum threshold score shown in the information below:

• Application Amount - Up to £5.000
• Minimum Threshold Score - 55%

The assessment score of the panel will be final and conclusive and any further correspondence or representation will not be considered or entered in to.

13. Grant Decision

A brief report on each application will be prepared by officers for submission to the appropriate decision making body in accordance with the Council's Constitution.

Following their decision, and subject to sufficient budgetary allocation being made available by the Council, applicants will be advised of the outcome as soon as possible given the capacity constraints within the Council.

NB: Applicants should be aware that even in cases where they meet all the relevant criteria, funding may still be declined because of budgetary constraints.

14. Standard Conditions of Grant

Any grant approved will be subject to certain conditions that must be satisfied before payment is made.

This will be in the form of a Service Level Agreement (SLA). These will clearly lay out what is expected from the group and what the Council will provide.

The exact nature of the agreements will vary from organisation to organisation and willbe used to enable the Council to monitor and evaluate successful organisations.

The organisation may also use it for self-evaluation.

All organisations must indicate acceptance of such agreements within two weeks of an offer of grant and must confirm as such before payment is made.

15. Payments

Grants will normally be paid in full for the 12 months in advance within the financial year once the SLA/Grant Agreement has been signed by both parties.

Organisations will provide quarterly reports that demonstrate that all conditions of grant have been met in accordance with the SLA/ Grant Agreement.

Where future or continuation of funding is being sought, evidence of success must be provided, by way of a final evaluation report.

Failure to report on the completion of the project may result in future grant applicationsbeing refused.

Liz Mossop
Assistant Director Advice and Community Services
01772 906419