Grant-Making Policy

As a registered charity, [Charity name] is committed to making grants in a fair, transparent, and responsible manner to further its charitable purposes.
This Grant-Making Policy sets out the principles, criteria, and procedures governing the award, management, monitoring, and review of grants made by the Charity.

The Trustees recognise that effective grant-making is central to achieving public benefit and requires robust governance, accountability, and stewardship of charitable funds.

Purpose of the Policy

1.1 The purpose of this Policy is to:

Ensure that grants are made in line with the Charity’s objects.
Promote consistency, fairness, and transparency in grant decisions.
Manage financial, legal, and reputational risks.
Ensure proper oversight and accountability for grant funding.

1.2 This Policy provides a clear framework to support trustee and management decision-making in relation to grant-making activities.

Scope of the Policy

2.1 This Policy applies to:

All grants made by the Charity.
Trustees, staff, and volunteers involved in grant-making.
Third parties acting on behalf of the Charity in administering grants.

2.2 It applies to grants made to:

Individuals.
Charities and voluntary organisations.
Community groups or other eligible bodies.

Definition of a Grant

3.1 For the purposes of this Policy, a grant is defined as:

A transfer of money or resources made for charitable purposes, where the Charity does not receive goods or services of equivalent value in return.

3.2 Grants may be:

One-off or recurring.
Restricted or unrestricted.
Conditional or unconditional.

Grant-Making Principles

4.1 The Charity’s grant-making is guided by the following principles:

Alignment with the Charity’s charitable purposes.
Public benefit.
Fairness and consistency.
Transparency and accountability.
Responsible use of charitable funds.

4.2 Grants will not be made where they fall outside the Charity’s objects or conflict with charity law.

Eligibility Criteria

5.1 The Trustees will establish clear eligibility criteria for grant applicants, which may include:

Alignment with the Charity’s purposes.
Legal and organisational status.
Financial viability and governance capacity.

5.2 The Charity reserves the right to:

Restrict eligibility to specific groups or causes.
Refuse applications that do not meet the criteria.

Application Process

6.1 Applications for grants must:

Be submitted in the prescribed format.
Include accurate and complete information.

6.2 The Charity will:

Publish clear guidance on how to apply.
Apply the application process consistently.

Assessment and Due Diligence

7.1 All grant applications will be assessed against predefined criteria.

7.2 Due diligence may include:

Review of governance and financial information.
Assessment of safeguarding arrangements.
Consideration of risks and capacity to deliver outcomes.

7.3 The level of due diligence will be proportionate to the size and risk of the grant.

Decision-Making and Approval

8.1 Grant-making decisions will be taken:

In accordance with delegated authority.
By Trustees or authorised committees.

8.2 Material or high-risk grants require Trustee approval.

8.3 Decisions will be:

Documented.
Made free from conflicts of interest.

Grant Agreements and Conditions

9.1 Grants may be subject to written agreements setting out:

Purpose and permitted use of funds.
Reporting and monitoring requirements.
Conditions and timescales.
Provisions for recovery of funds where appropriate.

9.2 Grant recipients must comply with all agreed conditions.

Monitoring and Reporting

10.1 The Charity will monitor grants to ensure:

Funds are used for the intended purpose.
Outcomes are being achieved.

10.2 Monitoring may include:

Progress reports.
Financial reporting.
Site visits or audits where appropriate.

Safeguarding and Ethical Considerations

11.1 Where grants involve children or vulnerable adults, recipients must:

Have appropriate safeguarding policies and procedures.

11.2 The Charity will not make grants where safeguarding or ethical concerns cannot be adequately addressed.

Suspension, Variation, and Recovery of Grants

12.1 The Charity reserves the right to:

Suspend or vary grant payments.
Recover funds where terms are breached or misuse is identified.

12.2 Any action taken will be:

Proportionate.
Documented.
In accordance with the grant agreement.

Conflicts of Interest

13.1 All individuals involved in grant-making must:

Declare any actual or potential conflicts of interest.

13.2 Conflicts will be managed in accordance with the Charity’s Conflicts of Interest Policy.

Reporting and Transparency

14.1 The Charity will:

Maintain accurate records of grants awarded.
Report grant-making activity in its annual accounts and Trustees’ Report where required.

14.2 Grant-making information will be disclosed in line with legal and regulatory requirements.

Governance and Responsibility

15.1 The Board of Trustees has overall responsibility for grant-making.

15.2 Day-to-day administration may be delegated, but accountability remains with the Trustees.

Monitoring and Review

16.1 This Policy will be reviewed:

At least annually, or
Following changes in law, guidance, or grant-making activity.

16.2 Any amendments must be approved by the Board of Trustees.

Conclusion

By adhering to this Grant-Making Policy, [Charity name] ensures that grants are awarded and managed responsibly, transparently, and in furtherance of its charitable purposes, delivering public benefit while safeguarding charitable funds and maintaining public trust.

Signed: ………………………………………
Chair of the Board of Trustees

Date: ………………………………………

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Disclaimer:

Naail & Co provides these policy templates solely as guidelines or standard templates to assist charities in developing their own policies in accordance with Charity Commission England & Wales compliance. These templates are not intended to serve as legal or professional advice, and Naail & Co cannot be held responsible or liable for any outcomes arising from their use. It is essential that each registered charity carefully tailors and customizes these policies to reflect its specific needs, structure, and legal obligations. We strongly recommend that charities seek independent legal or professional advice to ensure compliance with all relevant laws and regulations.

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