Governance, legal and compliance

ACF, CFG and NCVO raise concerns on draft guidance for funding non-charities

Draft guidance from the Charity Commission, entitled 'Grant funding an organisation that isn't a charity' states that an organisation must not fund the 'core costs (or overheads) of a non-charity'. It would also prevent organisations giving unrestricted grants, which could particularly impact on development charities that work overseas with non-charities.

In a consultation response, CFG has argued alongside the Association of Charitable Foundations (ACF) and National Council for Voluntary Organisations (NCVO) that the guidance risks undermining the ability of charities to build capacity in organisations that have a vital role to play in civil society such as social enterprises, start-ups and international NGOs.

The joint submission argues that it is both important and appropriate that funders are able to build the core capacity of such organisations so that they are resilient, able to respond flexibly to changing needs, and have the ability bid for other funding streams to support their activity.

It warns that without trustees having discretion to offer flexible funding for 'core' essentials such as accommodation, ICT, salaries for leadership and the costs of growth and adaptation, many socially beneficial organisations would cease to exist, to the great detriment of their beneficiaries and the frustration of the charitable objectives of the UK based funder.

Download the join response to the draft guidance.

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