Request for donation

Question

18I have been made aware of one of our local town councils is considering a donation request it has received for £31k for 12 months start up costs. this is for a not for profit registered company  who want to pay themselves salaries to facilitate such as, small knitting groups up to 12 people, meditation and self counselling  etc. the request is also to help with room hire. as an ex councillor I  am not against the service but out of this money there will only be about 1500 pounds going to support these services the rest is salaries and hire costs. so in theory the town council could be paying out 31k for 1200 pounds worth of services. I would be interested in what other people feel as think its a lot of money for possibly an unsustainable service.

Answer 1

Anything that relies upon grant funding is inherently unsustainable.
The question is, are the output services expected to be delivered by the org worth the input grant funding?

From your description it doesn’t sound like it. Sounds more like another chancer with a bright idea (which isn’t very bright) trying to jump on the gravy train of external funding sources in order to provide a salary for a venture that wouldn’t hold water as a commercial enterprise.

Answer 2

It would be interesting to see their grant policy and whether it covers things like salaries as many don't.  Its one thing to award a grant for a physical items, equipment etc, than paying staff...

Answer 3

Is there a costed plan for months 13 to 24, or are they assuming that the council will continue to fund it? At those levels, it will never be self-funding. Are the activities being targeted at those in greatest need and being offered because they are unavailable elsewhere? Are those who will be providing the services experts in their fields with a track record of successful delivery?

Too many questions for my liking.

Answer 4

I would add to my previous response that one of the fundamental go/no go factors ought to be the status of the entity seeking funds for their (otherwise financially unviable) venture.
Are they  a ‘charity’ a ‘charitable company’ a ‘charitable trust’ or a Community Interest Company?

You’d need to know ‘what’ they are in order to make a sound decision - can’t remember if s137 requires it to be one, or the other, entity but model standing orders often do
If a charitable company - where staff and directors are salaried - probably NOT eligible.
If a charitable trust - where Chair, trustees and ‘staff’ are volunteers  - possibly eligible (whether it’s appropriate or not is a different matter!)

Comments

If S137 is used surely the legal test is only the requirement that the grant will bring a direct benefit to some part of community.   What that grant can include or exclude  is to be stated in the PC grants policy.   Most PCs also say their decision is final .   To my mind this piece of legislation needs tightening up . Don't forget there is a maximum amount pa for S137