Grant Funding To Non-Charitable Organisations

Author:Mr Chris Priestley
Profession:Withers LLP

The Charity Commission has published its final guidance for charities considering making grants to non-charitable organisations.

Although the consultation period for the guidance closed on 8 April 2016, publication of the final guidance was delayed until 11 August 2017. The key points are:

The guidance covers donations to all non-charitable organisations including Community Interest Companies (or CICs), social enterprises and public sector bodies (this would include for example a donation made to an NHS Foundation Trust). Any such grant must be accompanied by a written statement or agreement stipulating the detailed terms and conditions of the grant and its monitoring requirements. Charities must have particular regard to whether activities undertaken by the organisation in general (or those specified to be funded) are for the public benefit. The Commission notes that risks may arise where grants are for work which involves the promotion of human rights or rural / urban regeneration, but there are other areas which may also be high-risk. The guidance suggests that grants to organisations that work overseas or are involved in campaigning will require additional scrutiny. The...

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