Supporting grass roots organisations with a range of donors
Heart of England Community Foundation is one of 47 community foundations operating across the whole of the UK. We are all independent charities operating in our own specific geographical areas, with the Heart of England Community Foundation covering the West Midlands and Warwickshire. We cover a large, ethnically diverse area with a population of over four million.
As a place-based funder, our role is supporting local grassroots organisations working in the heart of their communities with vital funds to support their work. On average, we support more than 700 projects annually with around £3 million of social investment. We attract a diverse range of donors who choose to work with us to distribute vital funds on their behalf. We have extensive knowledge of the areas we support, a wide reach into our local communities, and we are a trusted partner for both our donors and the communities we serve.
We deliver grant programmes for a range of donors, from central and local government to regional corporates and other trusts and foundations who see the benefit of outsourcing their grant making to a local place-based funder. We have the systems in place to ensure their funds are directed to the right organisations against their individual criteria and priorities.
Each fund has its own area on the foundation’s website with its own unique fact sheet, tips and advice for completing the application, and a checklist with the required supporting documentation. We understand that local organisations are often volunteer-led and lack resource, so it is important for organisations to read all the supporting documentation to avoid applying to a fund that their project is not eligible for.
Independent decision making panels
We award grants in several different ways, but all decisions are made by independent decision making panels. It is a fantastic way for corporates to engage employees in something different. For a number of corporate donors, we train employee panels to become decision makers of their fund with guidance from the foundation.
For other funds, we have two main panels which cover distinct areas of our region. These comprise donors, community representatives and key voluntary and community sector stakeholders. They are chaired by a trustee of the foundation. Decisions are made jointly, so it is important the panels have representation in terms of geography, diversity and complete independence from the applications submitted for consideration.
All grant recipients are required to complete a learning and evaluation report, and this is proportionate to the level of funds they have been awarded. Donors are keen to know that their funding has made a difference, so we collect stories, case studies and demonstrate to donors that their funding is helping to change local lives.
Our mission to create happier, healthier lives across the Midlands which can only be achieved by the generosity of our donors and the vibrant sector we are incredibly proud to support.
How to pitch an application
Completing funding bids can be time consuming and with often limited resource, it is integral for organisations to read the criteria of the fund they are applying to. The fund could be targeted to a particular geographical area, or to a particular area of interest, so we endeavour to provide a comprehensive fact sheet to enable organisations to choose the best fund to meet their project needs.
The foundation is not looking for a professional, polished bid, but a bid that covers the salient points: What is the project for? Who will benefit from the project? How many beneficiaries will there be?
Governance is an issue for the sector. We are looking to try and address this by offering some non-financial support. We’re seeing an increasing number of Community Interest Companies and social enterprises who are not trading, as their charities do not generate a trading income. Although it may be simpler to register as this type of organisation, they will find that funders will question their trading income after being in operation for a couple of years.
Key supporting documents
Organisations need a set of key supporting documents as part of their governance. Examples of these could be safeguarding with a named lead for equality and diversity and vulnerable adults, which must be submitted with the applications. These are often missing or incomplete. Where possible, we do not reject these organisations, but signpost them for advice and guidance. I must add that these organisations are delivering brilliant services, but governance can sometimes be overlooked due to resource and capacity.
Finally, it is important to cover all things finance! An organisation should have a minimum of three committee members, unrelated cheque signatories and an annual set of accounts. Again, we need to see an organisation is financially viable, and even thought they only generate a small income, we do need to see a set of annual accounts or a forecast for a new group.
So how much should an organisation apply for? A detailed budget should be submitted with each application so the funder can see what the applicant is asking for. I would always advise to ask for what you need to deliver the project or service - do not underestimate or inflate budget lines, but provide a budget that’s reflective of the project.
Once an application is submitted
The foundation is a high-volume funder, which means we do not have the capacity to contact individual groups about their applications should they be unsuccessful. If an application is incomplete, we provide opportunities for organisations to complete their bids. As a front-facing organisation, we are on hand to support the sector, and one of our grants team is available to chat through individual projects.
However, we also accept that to be truly inclusive you must look at alternative ways for an organisation to apply. We have trialled video applications but the take up was fairly low, so we’re now writing our new three to five year strategy which has a huge emphasis on how we engage with our local communities and how best we can serve them.
When funding is granted
The level of monitoring depends on the level of grant an organisation has received. For a small grant, which is classed as anything up to £5,000, we ask an organisation to complete an end of grant report. Here we’re interested in case studies and stories which support our impact storytelling and demonstrate how the funding has helped and what difference it has made to donors.
While grants are often paid in one lump sum, for larger grants of over £75,000 we work with organisations to produce a detailed staged payment plan. When evidence is received on spend, we then release the next payment.
For larger grants, we’re looking for evidence of expenditure against the payment profile, this could be receipts for equipment, salary information, venue hire etc. Once the information is received, we can release the next payment.
We strive to be a flexible funder and we understand that projects do not always go to plan, or costs can change. We are always open to vary the grant, but the most important piece of advice I could offer is talk to your funder to discuss any issues with the project and find a positive way forward.
Monitoring and impact reporting enable us to evaluate the overall impact of funding and highlights any potential gaps in the support we offer. It also helps to demonstrate to applicants that impact reporting is important, and provides them with key qualitative and quantitative information to include in future funding bids.
