Some key points for the decision making group to consider in establishing the merits of each funding proposal are outlined below. Proposals may be scored against some or all of these criteria if the decision-making group feels this is useful and appropriate.
- Are the organisation’s legal structure and governance processes fit for purpose? Is the project within its stated purposes and powers?
- Are local people sufficiently engaged with the applicant organisation? For example, how many committee or board members are drawn from the local community? How can people come on/off the Board or committee? Does the organisation hold an annual general meeting, and who can attend?
- Does the organisation have sufficient skills and experience to deliver the project? And to manage the grant?
- Are its financial management procedures/controls adequate?
- Is the organisation in good financial health? For example, does it have other regular sources of income? What level of free reserves does it have?
Much of the information needed in order to come to a view on the above points should be contained in the applicant group’s governing document or constitution and accounts. Written policies or procedures the organisation has adopted, such as a Protecting Vulnerable Groups (PVG) policy, may also be relevant depending on the nature of the funding proposal.
Bear in mind how well developed the group or organisation can reasonably be expected to be given the scale of its activity, the resources at its disposal, and the length of time it has been operating.
- Is there a clear need and/or opportunity for the proposed project? How is this demonstrated? This might be, for example, through the results of consultations or a survey, statistics for the area or beneficiary group in question, waiting lists, letters of support, or evidence from any community action plan or other relevant strategy or report for the area.
- Are there other organisations in the area delivering similar activities / services for the beneficiary group? If so, would the proposed project duplicate / compete with these, or complement them?
- Is an award necessary for the project to go ahead? What would be the impact if the funding proposal were unsuccessful? Could the applicant finance the project from its own reserves or deliver it in some other way?
- Are all the items that the grant will pay for necessary to deliver the project?
- Will a grant unlock funds from elsewhere?
- Is there a clear and realistic plan and timescale for the delivery of the proposed project?
- Does the budget specified cover all costs involved in delivering the project?
- What items will the funding proposal pay for? Does the request offer value for money?
- Are all of the items for which funding has been requested necessary, and have they been secured at market rates (or below)?
- Are other funds required to deliver the project (matched funding) and have these been secured – or are they likely to be?
- Are there any permissions / agreements required for the project to go ahead, and have these been secured? For example, planning permission or a building warrant. If the project involves property, does the applicant have secure tenure over it?
- How will the intended beneficiaries find out about the project? What plans are there to promote it to them?
- Is the project accessible and inclusive (e.g. what time of the day or week will it be open, are there any charges to participants?)
There may, of course, be a number of other relevant questions here, depending on the nature of the project in question.
- What difference will the project make, for who, and for how many? Consider how realistic the applicant’s statements about the project benefits are.
- What Fund purposes/priorities will the project contribute towards? Does it fit with the community action plan (if there is one) or any other relevant strategy/ plan?
- Will a grant help build the capacity and sustainability of the applicant organisation?
- Will the project continue beyond the period for which funding is being requested? If so, are there realistic plans for how it will be sustained (financially, in terms of volunteers, etc.)?
Is there any additional local (factual) knowledge/information on the organisation or project that the decision making group can bring to bear?
- Is what the applicant is asking for reasonable?
- Does anyone have any concerns about the project or the applicant group? If so, do they have any conditions of award to propose? (see section 5 below for more on conditions of award)
- What is the priority of the funding proposal, in light of the Fund purposes/priorities and the other requests being considered in the same award making round?
If privately owned businesses are eligible to receive funding, there will likely be further points the decision making group will wish to consider. If a fund has been established on a charitable basis, funding can still be directed to businesses where they can demonstrate that the investment meets the Fund’s purposes, provides clear public benefit (such as the provision of essential local services, or employment), and the activity would not take place without the funding (require them to provide their accounts). Assessment of proposals should also consider the risks of displacing or damaging other local businesses, which should be avoided.
