The 3 types of grants are:
Cash grants – which are paid directly to a charity.
– which are paid directly to a charity. Co-sponsored grants – which are paid directly to an organisation which sponsors a project, usually charity for the disabled.
– which are paid directly to an organisation which sponsors a project, usually charity for the disabled. Non-cash grants – which are paid by the project’s supporters to a charity.
It takes a lot of people to apply for an organisation, but not everyone can be a charity supporter. So there has been a tendency in recent years for the 3 types of grants to be co-sponsored. This is now becoming quite common.
What is the difference between a Cash grant and a Co-Sponsored Grant?
A Co-sponsored grant means that the organisation paying the grant is also an existing donor. This means that they can also pay the grant directly to the charity who is carrying out the work. The difference between a Cash grant and a Co-sponsored grant is that a Co-sponsored grant is based on the same criteria as a Cash grant and is paid directly to a charity. If the organisation does not need an endowment then they are not being subsidised.
Cash grants are based on the same criteria as CCA grants (for example, you have to be a ‘fit of character’). Co-sponsored grants are not based on ‘fit of character’ criteria, but a charity’s financial situation.
Both types of grants must be submitted once per year.
Is it illegal for a Charity to pay someone to run a charity?
Yes. Co-sponsored grants are illegal unless the charity has been specifically given permission to do so by the Charity Commission. Cash grants may be considered legal if they are based on a ‘fit of character’.
What if the charity doesn’t have an Endowment?
A charity will not be considered to have a legal purpose unless they have a legitimate purpose – for example, a health or social good, a charity to which they are committed. A charity may apply for a grant for a project, but they will rarely get a grant if they lack an Endowment.
To learn more about Endowment and charities, see Charity.
If the Charity does meet the criteria, why do I need to go through the application process?
After you are accepted as a project donor, the process of applying for an Endowment takes around 3-
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