A new Draft Grants Policy is currently awaiting ratification by our Trustees. The new policy contains updates to Clause 4.1 and 4.2 reflecting the new grant rounds and parameters listed for FY2021-22.
1.0 Objects of the Trust
“The Trustees shall stand possessed of the Trust Fund upon trust to be applied for charitable, cultural, philanthropic, recreational and other purposes being purposes beneficial to the community principally in the specified area.”
Amended Trust Deed – 30 March 2015, Section 4. Paragraph a.
2.1 The purpose of making grants is to:
2.1.1 Generally provide supplementary funding support rather than act as a principal funding source.
2.1.2 Focus on supporting an organisation by providing funding at a time best suited to their needs.
2.1.3 Recognise the continuing and invaluable work of the voluntary sector.
2.2 The Trustees will assess applications for grants against this policy, the criteria and any guidelines that may be developed and reviewed from time to time by the Trust.
2.3 This Policy will be reviewed annually by the Trust with any reviews taking into account feedback received from grantee organisations and the results of any surveys that are conducted from time to time by the Trust.
3.0 Criteria for applications
3.1 Grant applications will be categorised according to geographical location and type of activity.
3.2 Generally organisations should apply for funding only once within the Trust’s financial year.
3.2.1 Exceptions will be made for organisations that operate a food bank where one of the two applications relates to funding for the food bank.
3.3 Applications will be considered from:
3.3.1 An incorporated society
3.3.2 A registered charitable trust
3.3.3 A body or club controlled by an association of persons under an adopted constitution that has audited or reviewed accounts and an annual report.
3.3.4 Not-for-profit community based youth groups and parent-led playgroups.
3.3.5 The above organisations that will govern and/or manage and/or own the activity/project/asset. Consideration will be given to applications from lease holders, dependent on the conditions of the lease agreement.
3.3.6 Community owned Trusts, or other similar incorporated entities, that hold monies on behalf of other community organisations or event organisers. In such cases applications should be completed in the name of the community-owned Fundholder/Trust, and they will assume responsibility for meeting all the Community Trust’s accountability requirements
3.4 Applications will not be considered from:
3.4.1 Individuals or groups seeking to provide funding assistance to individuals.
3.4.2 Organisations and groups operating for private profit
3.4.3 Commercial entities
3.4.4 Primary schools, secondary schools, kindergartens, playcentres and not-for-profit early learning centres that are eligible for annual formula funding from the Trust. (Subject to the policies relating to primary schools, secondary schools, kindergartens, playcentres and not-for-profit early learning centre grants below)
3.4.5 Fundraising organisations when the individual organisations, that they are fundraising for, may apply directly to the Trust
3.5 Applications will not be considered for:
3.5.1 Projects that the trustees consider are the primary responsibility of local or central government
3.5.2 Completed or retrospective projects as at the time of applications being considered.
3.5.3 Projects that do not specifically benefit the community of the Mid and South Canterbury region.
3.5.4 Costs relating to attendance at out-of-region conferences, education, tournaments, competitions, tours etc.
4.0 Closing dates for applications
4.1 There will be four open rounds annually for applications up to $10,000. There will be two open rounds annually for applications over $10,000. There will be one round annually by invitation only for applications for Special Projects (see #6 Special Project Funding)
4.2 Closing dates for rounds under $10,000 will generally fall in April, July, August and February. Closing dates for rounds over $10,000 will generally fall in May and October. The closing date for the invitation only round for Special Projects will generally fall in December.
4.3 Exact closing dates for rounds will be confirmed through a finalised annual meeting schedule and reports timeline and published on our website no less than 3 months prior to the new financial year.
4.4 Applications will generally be considered within an approximate two month window following submission, subject to the board’s meeting schedule as set out in the annual meeting schedule and reports timeline.
5.0 Conditions of Grants
5.1 The following conditions will be attached to any grant made by the Trust:
5.1.1 The recipients shall complete an Accountability Report using the approved template.
5.1.2 A standard grant will be spent within twelve months from the date that it is uplifted unless special arrangements can be made with the Trust. Where a grant has not been spent within twelve months an application for an extension should be made to the Trust or the funds returned if no longer required for the original purpose.
5.1.3 When a grant has not been uplifted within 12 months a written update of the project may be requested detailing why this has not occurred. The Community Trust may wish to review the terms of the grant.
5.1.4 If required by the Trust, the recipient agrees to a project audit being carried out.
5.1.5 Unless specifically authorised by the Trust, the grant must be used for the specific project applied for, with any conditions applied by the Trust to the grants being adhered to.
5.1.6 It is the responsibility of the grantee to declare any income received from the Trust and to pay any taxes that may be incurred as a result of that grant income.
5.1.7 The Trust has the right to publicise any grant made.
5.1.8 The grantee organisation shall acknowledge any donation made by the Trust in the Annual Report of the organisation and wherever possible in accordance with the Acknowledgement Guidelines.
6.0 Special Project Funding
6.1 The Community Trust may proactively identify and commit to funding Special Projects from time to time. Such projects would be considered where specific benefits within the community are the focus of funding.
6.2 Such projects remain subject to the ordinary conditions of grants including all reporting and acknowledgement requirements.
7.0 Multi-year Grants
7.1 It will be at the sole discretion of the Trust to enter into multi-year funding commitments.
7.1.1 The Trust’s ability to enter into multi-year funding commitments will be dependent on the availability of funds for disbursement (i.e. the annual grants budget) and existing future commitments.
7.1.2 The Trust will proactively identify, as part of the grant assessment process, organisations which it may consider for longer term funding commitments.
7.1.3 Multi-year grants will be accounted for by the Trust within the financial year/s in which each payment is made.
7.2 Multi-year grants will be approved for a specific length, but for no more than a three year period, and will be approved in principle only.
7.3 Following the first grant payment trustees will consider subsequent instalments on an annual basis subject to receipt of satisfactory information prior to each 12-month anniversary of the grant approval. Such information will include but not be limited to:
7.3.1 completion of accountability requirements;
7.3.2 staff discussing with the applicant the past year’s activities and future planned activities;
7.3.3 identification of any significant changes to the organisation, management, governance, staffing, activities or programmes;
7.3.4 receipt of the latest financial statement and annual report;
7.3.5 budget for forthcoming year.
7.4 The Trust will identify the need for decreasing levels of funding and/or exiting multi-year grants through annual monitoring and reporting. Other situations in which decreasing funding or exiting may be appropriate include, but are not limited to:
7.4.1 a change in the financial or grant strategy of the Trust in response to e.g. changing economic and/or social environment including a change in the level of grant funding available and/or grant making priorities,
7.4.2 serious breach of funding conditions including misappropriation of funds,
7.4.3 unforeseen events such as the recipient organisation receiving a large bequest/legacy or experiencing a significant positive shift in government or other funding,
7.4.4 significant events that effect the ability of the organisation to achieve its mission/service provision,
7.4.5 poor financial or other management of the organisation.
7.5 If a decision is made to decrease or exit the Trust will formally notify the organisation to outline the reasons, the date the funding arrangement will decrease or cease, and the details and conditions associated with any transition arrangement.
8.0 Guidelines for applicants
8.1 While all applications received by the Trust will have their merits every funding decision is made on a case by case basis at the sole discretion of the Trustees.
8.2 In making these decisions Trustees consistently aim to mitigate risk, to maximize community impact of the available funding and to distribute the funding in an equitable manner.
8.3 There are therefore a number of key factors which Trustees regularly consider and which may weigh for or against any application. Applicants will present their best possible case if in their application they accurately explain and offer clear evidence of their;
8.1.1 governance and operational capability to deliver the proposed activities (the right people, policies, and practices; compliance with Trust processes and accountability for previous donations);
8.1.2 financial stability and sustainability (sufficient funds to deliver the proposed activities and for benefits to have longevity; ownership of any capital item to be purchased as part of the project);
8.1.3 financial need (contracts held with central or local government; reserves, investments and committed funds; relationships with other funders; volunteer or member contributions and fundraising efforts);
8.1.4 project purpose and sustainability (matched with local community needs and differentiated from similar programmes; collaboration with relevant agencies; realistic budgets; appropriate contractors/products/significant volunteer/agency capacity and capability)
8.1.5 community support (from relevant local user groups, target beneficiaries);
8.1.6 community benefits (numbers and demographics of those affected; geographic reach/relevance; efforts to target identified vulnerable communities; accessibility and inclusion strategies to address physical, financial or cultural barriers);
8.1.7 environmental impacts (positive and negative);
8.1.8 risk management strategies to mitigate any possible negative impacts for other groups or agencies.
8.2 Where an application is made by a national or regional body applying on behalf of a local branch for a specific local project or the local aspects of a national project, financial information, including budgets and financial statements, must be provided for the local branch or the local project. details of the way in which the local community will benefit, including numbers of people, should be provided.
8.3 The Board has the discretion to also consider any other factors which it deems relevant.
8.4 Advice may be sought from the Community Relations Manager at the Community Trust.
9.0 Not-for-profit early learning centres, playcentres, kindergartens, primary and secondary school grants
9.1 The purpose is to provide funding which will enable disadvantaged students to take an active role in the organisation’s core activities. Core activities are defined as those activities in which all students participate. The use of such funding is at the discretion of the head of education within the organisation.
9.2 Grants to not-for-profit early learning centres, playcentres and kindergartens will be made at the agreed allocation below.
|NFP Early Learning Centers||$1000|
9.3 Principal’s Discretionary Fund: The schools funding formula is based on the March roll, with a minimum amount of $600 and decile rate weighting as below. The following exceptions apply;
- Waihi School – fully private – no funding
- Craighead Diocesan School funded at 50% of the rate for same decile school, as agreed with the Principal.
- Where the Isolation Index of a school, calculated by the Ministry of Education, is greater or equal to 1.3, the funding amount per pupil for that decile will be doubled.
|School Decile rating||Funding per pupil||Funding if Isolation Index ≥1.3|
9.4 Without detracting from the present policy of making formula based grants to not-for-profit early learning centres, playcentres, kindergartens and schools, Trustees may consider exceptional grant applications from not-for-profit early learning centres, playcentres, kindergartens and schools to develop facilities for combined community use. Such applications must demonstrate a commitment to protecting the long term benefit for the wider community from the development of the facility. In addition to the usual application requirements such applicants will need to provide
9.4.1 detailed evidence to support forecast community uses of the facility (e.g. specific user groups including members, purpose, timing and frequency of use; letters of support etc.)
9.4.2 Evidence (e.g. Memorandum of Understanding, User Agreement etc.) of their commitment to maintain community user rights/access to the facility for a minimum period of ten years following the grant, or for a longer period at the board’s discretion.
9.5 The Community Relations Manager of the Trust will, on an annual basis, obtain the roll and decile rating of the schools to be funded, along with the number of not-for-profit early learning centres, playcentres and kindergartens and present a report to the Trustees detailing costs for the year ahead.
9.6 Each not-for-profit early learning centres, playcentre, kindergarten and school receiving a grant is expected to complete an on-line Accountability Report detailing how the grant was utilised within one year of receiving the grant.
10.0 Collaborative Funding
10.1 From time to time the Community Trust may wish to approach another funder, or funders (other than a Community Trust), towards the collaborative funding of a project.
10.2 Any such strategy shall first be presented to the Community Trust Board of Trustees, in the form of a discussion document and the proposal agreed to by the trustees, before any formal approach is made to other funders.
10.3 Should the Trustees decide to proceed with a collaborative funding project this may be achieved by way of special funding or through the application process.
10.4 Should a funder (other than a Community Trust) approach this Trust regarding a collaborative funding project, the Trust Chair and staff will meet with them to discuss the proposal. All Trustees are to be notified of the meeting.
10.5 The representatives will remain non-committal and bring the proposal to a meeting of the full Trust where a decision will be made regarding the merits of collaborating and the benefits to the community of the project.
10.6 Should Trustees decide to proceed on a collaborative funding basis with another funder or funders, this may be achieved either by special funding or through the application process.
11.0 Collaboration with community trusts
11.1 From time to time all Trusts receive applications that have national benefit. The following process has been agreed by all Trusts.
11.2 Before an application is promoted to other Trusts it must be within the policy and guidelines of the host Trust, approved for nationwide submission and their pro-rata share of the required funding approved.
11.3 The host Trust is to circulate a copy of the Board papers, which must include:
11.3.1 A covering memo outlining the merits of the project,
11.3.2 A copy of or extract from the application to the host Trust,
11.3.3 The applicant’s annual accounts and organisation details including taxation status
11.3.4 A joint funding proposal which by default will be based on a pro-rata allocation, based on the average of the last three years’ annual grants as spent by each Trust. If an alternative funding proposal is presented, the rationale for this should be explained.
11.4 Alternatively, if the Nationwide application is recommended by the Chairperson’s Group for consideration then one Trust must assume the role of host Trust and act in accordance with this policy.
11.5 The host Trust will remain the point of contact throughout the project and agrees to obtain any additional information requested by the other Trusts.
11.6 All Trusts are to advise the host Trust of their expected decision date, upon receipt of the Nationwide application, and the approval or decline grant decision and amount as soon as possible.
11.7 Once sufficient funding has been confirmed from participating Trusts for the project to be viable, then the host Trust will notify all the Trusts. Those Trusts that have approved funding will either be invoiced by the host Trust for the amount approved or alternatively these Trusts can pay the organisation/group direct.
11.8 If requested by the majority of participating Trusts, an audit of the grant will be arranged by and at the cost of the host Trust. Once completed the result of the audit shall be shared with the participating Trusts by the host Trust.
Adopted 20 February 2020