Policies and Procedures

DOCUMENT CONTROL: Rev 1.0 Reviewed May 2023. Adopted without changes. Rev 1.1 Rev Sept 2023. Revision to definitions and inclusion of examples of statutory powers in addition to LGA s 137. Effective Oct 2023. REV 1.2 SEPT 2025. Amended to meet budget and precept planning process by Hemswell PC Finance Committee, grammatical edits. 

Hemswell Parish Council

GRANT AND DONATION POLICY

Introduction

1.    Parish Council Powers and Section 137 of the Local Government Act 1972

2.    Who Can Apply and What Can Be Funded?

3.    Donation/Grant Evaluation Process

4.    Conditions of Award of a Grant or Donation

Introduction

This policy sets out how Hemswell Parish Council (PC) evaluates and awards grants or donations to support community projects, events or activities that are considered to be in the best interests of Hemswell village and parish and its residents. 

Grants and donations are open to established voluntary or community groups, as well as new or informal groups of parishioners who are formally constituted or intend to become formally instituted by the date of application.

This policy aims to ensure that the process of evaluating and awarding grants and donations is open, transparent, and fair. 

For the purposes of this Policy: 

• A grant stipulates what the awarded funds may be spent on.
• A donation does not stipulate what the awarded funds are spent on, within the context of the project/activity.

For example, a grant would be given towards the cost of a specific purchase or project, such as installing a security system or broadband in a community building. In contrast, a donation may be made to support general running costs of a club or group activity or event without specifying a particular item or equipment purchase. 

Applications under this policy are subject to the following considerations. 

1. Parish Council 'Powers' 

A Parish Council has several powers granted under various Acts of Parliament, allowing it to spend public money. The General Power of Competence (GPoC) is a wide-reaching power [permitted under the Localism Act 2011] that grants councils flexibility in how it spends money within the local community. For a council to have General Power of Competence, it must meet two criteria: 

1. It must have a 'qualified clerk' (i.e., holds the Certificate in Local Council Administration (CiLCA)) or equivalent AND, 

2. At least two-thirds of its members have been elected rather than co-opted or appointed. 

Currently, Hemswell PC does not meet these criteria; therefore, the council must look to other 'powers' it can apply when awarding grants or donations. Example of such powers include the provision of:

• A public clock [Parish Councils Act 1957, s 2]
• Conference facilities [Local Government Act 1972, s 144.]
• Entertainment and support of the Arts [Local Government Act 1972, s 144.]
• Recreational facilities [Local Government (Misc. Provisions) 1976, s 19.]

Hemswell PC also has the power to spend a sum of money for the benefit of some or all of the parishioners under The Local Government Act 1972, Section 137, provided the expenditure is commensurate with the benefit. This money is not 'gifted' to the parish council; it forms part of its precept from the District Council, therefore, the cost of any grants or donations is reflected in residents' council tax bills, and therefore Hemswell PC has a duty to manage its budgets appropriately. The annual allotted sum per elector under Section 137(4)(a) of the Local Government Act 1972 (the 1972 Act) for parish and town councils in England is set by a central government department and communicated to local councils annually. This figure is included as part of Hemswell PC budgetary planning. 

The maximum sum set aside each financial year for grants or donations will be agreed by Hemswell PC Finance Committee for recommendation to the full PC as part of budgetary planning and setting of the precept. No additional funds will be available if the agreed sum is expended until the start of the following financial year (1st April). 

If the value of donation requests received exceeds the monies available in a given financial year, Hemswell PC will target grants/donations that will benefit as many people as possible within Hemswell parish.

2. Who Can Apply and What Can Be Funded?

Hemswell PC will award grants or donations intended to:

• Enhance the local community to make it a better place in which to live, work or visit.
• Benefit people who live in the parish.

To be eligible for the award of a grant or donation, the applicant must:

• Be established for charitable, benevolent, social, cultural, recreational, or philanthropic purposes.
• Have a constitution or set of rules which define its aims, objectives, and operational procedures. 
• Have sufficient and appropriate documentation, including financial records and financial controls. 
• Be able to provide clear evidence that parishioners support the project and are likely to be involved in carrying it out. 
• Reside or undertake its activities within Hemswell Parish. Applications from outside Hemswell Parish will be considered only in exceptional circumstances. 

Applications do not have to be from groups that already exist. All groups will be treated equally. If an organisation has received funds previously, it is not excluded from applying again, but is not guaranteed to be awarded a grant or donation. A new application must be completed and submitted via the clerk  for each request. 

Only one application will be considered per applicant each year, however, there is no guarantee that funds will remain available throughout the financial year.

• PC will not award grants or donations intended for:
• Individuals or private business projects.
• Activities intended to support or oppose any political party or religion, or to discriminate on the grounds of the Protected Characteristics (Equality Act 2010), or any activity that is likely to cause offence or distress to parishioners.  
• Activities considered to be the prime responsibility of the principal authority.
• Projects that improve or benefit privately owned land or property.
• Projects that have already been completed or will have been by the time the grant is made.
• Organisations that make, or attempt to make, profit for the benefit of members or owners over and above revenue expenditure, e.g., running costs, staff costs, premises maintenance and general overheads.
• Loans, interest payments, recoverable VAT, any liability arising from negligence, or activity likely to infringe any regulation or code of conduct. 

3. Grant/Donation Evaluation Process

All applications for grants or donations must be made in writing using the form provided and submitted to the Clerk. Applications must be submitted at least seven days in advance of a scheduled ordinary meeting of Hemswell PC to be included as an agenda item. 

Hemswell PC must satisfy itself that the grant or donation will benefit either Hemswell village and parish or a significant number of residents. The application should include evidence of local need or demand for the proposed project/activity. 

Before a grant or donation is awarded, Hemswell PC must be confident that the applicant's organisation has appropriate management mechanisms and financial controls in place. Hemswell PC will review an application against the following criteria as a minimum:

• How likely is it that the proposed benefits will be achieved?
• How many residents of the parish (or other area) will benefit?
• The funds requested and whether the amount is proportionate to the stated objective(s)/benefits.

The evaluation criteria and agreed outcome of an application will be recorded in sufficient detail in the Hemswell PC minutes to provide an audit trail. 

If appropriate, members of Hemswell PC may seek to visit the proposed project or activity before the project or activity commences and may wish to conduct a site visit once a funded project is underway.

All grants or donations are awarded at the discretion of Hemswell PC whose decision will be final, and there is no right to appeal. 

Hemswell PC reserves the right to reclaim a grant if it is not used for the purpose specified on the application form. 

A letter to a successful applicant will include the conditions of the award of a grant or donation. Before the grant or donation is issued, the applicant must sign and return a copy to the clerk to indicate they will comply with the conditions.

4. Conditions of Award of a Grant or Donation

Hemswell PC will award a grant or donation subject to some or all of the following conditions, taking into account the organisation's circumstances. 

1. An application must be made using the Hemswell PC application form, available from the clerk.

2. Quotes from at least three providers, where applicable or possible, must support an application for a grant exceeding £600.00.

3. The applicant must provide details of the extent of any funding sought or secured from other sources or their own fundraising activities.

4. Monies awarded for a grant must only be used for the purpose stated in the application. Funds not spent on the approved items/project must be returned.

5. Funding must be spent within the financial year awarded and cannot be added wholly or partly to the organisation's reserves. Any unused funds at the end of the financial year in which the grant is paid must be returned to Hemswell PC.

6. If the project/activity costs are higher than applied for, the applicant must meet any shortfall. Hemswell PC will not make up any shortfall.

7. The recipient must confirm in writing receipt of a bank transfer for a grant or donation for audit purposes. 

8. Upon completion of the project/activity, the recipient of a grant or donation shall provide the clerk with evidence of expenditure (receipted invoices). 

9. The recipient of a grant or donation must acknowledge Hemswell PC’s support in all publications, publicity, and annual reports.

10. The recipient of a grant or donation should record the funding awarded separately in their published financial accounts. Where appropriate, Hemswell PC may request access to such financial records.

11. The recipient must provide Hemswell PC with a report detailing how the awarded grant money was spent and the outcome(s) of the project/activity. 

Please contact the clerk to request an application form (available in WORD or pdf format).

IMPORTANT: Please contact the clerk to advise of your intention to submit a completed form. You may be requested to provide a copy of your most recent bank statement or annual accounts to support your application. If you have any questions about this policy or the completion of the form, please contact the clerk at clerk@hemswellparishcouncil.org.uk