Policies and Procedures

ADOPTED March 2022

Reviewed May 2023

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 Corringham Parish Council evaluates and awards grants or donations from its funds to support the cost of community projects, events or activities that are deemed to be in the interest of Corringham Parish, or any part of it, or are in the interest or all or some of its inhabitants. 

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

For the purposes of this Policy: 

•   A Grant must be spent specifically for the purpose agreed.
•   A Donation is given without the need to be specific about how it is used.

For example, a donation may be given towards sports club for the general running costs without being specific about what it is spent on, whereas a grant would be given towards the cost of specific project such as installation of a new security system. Most applications under this policy will be defined as a grant and are subject to the following considerations. 

The aim of the Parish Council is to ensure that its award-making process is open, transparent, and fair. 

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

A parish council has several powers granted under various Acts of Parliament which enable it to spend money. Since 2008 the “Power of Wellbeing” and more recently the “General Power of Competence, Localism Act 2011” allow parish councils more flexibility in how they spend money within the local community. To use either of these powers it is necessary that the Parish Council meets two criteria: 

1.   It has a ‘qualified clerk’, and, 

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

Currently Corringham Parish Council does not meet these criteria therefore all donations and grants fall under the statutory power of Section 137 of the Local Government Act 1972, which permits it to spend up to a certain limit on anything which in the opinion of the council is in the interests of the parish, or any part of it, or is in the interest or all or some of its inhabitants. If the donation requests received exceed the grant monies available in a financial year, then councillors will target projects/donations which benefit as many people as possible within the parish.

The Ministry of Housing, Communities and Local Government (MHCLG) has notified the National Association of Local Councils (NALC) that the appropriate sum for the purpose of section 137(4)(a) of the Local Government Act 1972 (the 1972 Act) for parish and town councils in England for 2021-22 is £8.41 per elector.

The maximum sum set aside each financial year for donations, is to be agreed upon annually at a full Parish Council meeting in which the precept is set (or) is to be recommended annually by the Finance Committee and agreed annually at the full Parish Council meeting in which the precept is sent. Funds will be available for this scheme, but once they are expended, no further funds will be available until the start of the following financial year (1st April). 

This money is not ‘gifted’ to the parish council; it forms part of the Precept which the parish council makes on the District Council. The cost of any grants or donations is therefore reflected in residents’ council tax bills. 

2.   Who Can Apply and What Can Be Funded?

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/or are likely to be involved in carrying it out. 
•   Reside or undertake its activities in the Parish. Applications from outside the Parish may be considered in exceptional circumstances. 

Corringham Parish Council 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.

Applications do not have to be from groups that already exist. All groups will be treated equally. If an organisation has had a grant previously, they are not guaranteed to receive financial support again but are not excluded from applying again. A fresh application will be required each time.

Only one application will be considered per applicant each year and may be made at any time, but there is no guarantee that funds will remain available throughout the financial year.

Corringham Parish Council 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 out of negligence, or activity that is 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 appropriate form and submitted to the Clerk. Applications must be submitted at least seven days in advance as an agenda item at the next ordinary meeting of the Parish Council.  

Corringham Parish Council must satisfy itself that the grant or donation will benefit the area and a significant number of residents. Ideally there should be clear evidence of local need or demand for the proposed project/activity. 

Council members must feel confident that appropriate management mechanisms and financial controls are in place within the applicant’s organisation. 

Members of the Council will review an application against these criteria as a minimum:

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

The evaluation criteria and the agreed outcome of an application will be recorded in the Parish Council’s minutes in sufficient detail to provide a clear audit trail. 

Members of Corringham Parish Council may seek to visit the proposed project or activity, prior to the project or activity commencing. If applicable or appropriate, they may also wish to conduct a site visit once a funded project is underway.

All grants or donations are awarded at the discretion of Corringham Parish Council. Any decision is final and there is no right to appeal. 

Corringham Parish Council reserves the right to reclaim a grant awarded in the event of it not being used for the purpose specified on the application form. 

The Conditions of Award of a Grant or Donation will be included in a letter to a successful applicant. The applicant must sign and return to the Parish Council, a copy of this letter, to indicate they will comply with the conditions before the grant or donation is issued.

4.   Conditions of Award of a Grant or Donation

Corringham Parish Council will make the award of a grant or donation subject to some or all of the following conditions.  Required conditions will be at the discretion of the Parish Council and will consider the organisation’s individual circumstances. 

1.   An application must be made using the Corringham Parish Council application form, available from the Clerk.

2.   Quotes from at least three providers, where applicable, must support an application for a grant exceeding £500.00.

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

4.   Monies awarded for a grant must only be used for the purpose agreed with the Parish Council, and if monies are not spent on the agreed items/project, they 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 out must be returned to Corringham Parish Council.

6.   If project/activity costs are higher than applied for, any shortfall must be met solely by the applicant. Corringham Parish Council will not make up any shortfall.

7.   The applicant shall write to confirm receipt of a cheque/bank transfer for a grant or donation for audit purposes or shall issue a receipt for a cheque (as applicable). 

8.   The recipient of a grant or donation shall provide evidence of expenditure (receipted invoices) to the Clerk to the Council on completion of the project/activity.  

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

10.   The recipient of a grant or donation should show the funding awarded separately in their published financial accounts and Corringham Parish Council may request access to such financial records, where appropriate.

11.   All grant recipients are required to provide Corringham Parish Council with a report detailing how the grant money was spent and any outcome(s) of the project/activity. 

CORRINGHAM PARISH GRANT/DONATION APPLICATION FORM

Please ensure you have read the terms and Conditions of Award before completing this form.

IMPORTANT: Please provide a copy of your most recent bank statement or annual accounts when submitting this application form. 

Please submit your completed form to:

Clerk to Corringham Parish Council & Burial Authority
Netherdene Cottage
Aisby
Gainsborough
Lincs
DN21 5RF

Alternatively, you can email this form and accompanying documents to:

clerkcorringhampc@gmail.com

If you have any queries relating to the Corringham Parish Council policy or completion of the form, please contact Elizabeth via clerkcorringhampc@gmail.com or call 07528 852852. 

This policy and form are available on the Corringham Parish website via:
https://corringham.parish.lincolnshire.gov.uk/