A to Z of funding (E)


Earned income

Income from contracts, sales and/or fees - not from grants and donations. Some funders see a proportion of earned income as evidence that the group is dynamic and enterprising, that it offers services others value and that it has business-like management.

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Endowment Fund

An endowment fund is literally the capital that provides income for an institution, or particular project.

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Administers the Landfill Communities Fund (LCF), and registers organisations wishing to receive payments under the scheme as registered 'Environmental Bodies'.

ENTRUST Head Office
60 Holly Walk
Royal Leamington Spa
CV32 4JE

T: 01926 488 300
W: www.entrust.org.uk

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Equal opportunities

Most funders will want to see that the organisations they give grants to have a commitment to equal opportunities. By this they will probably mean that the organisation has:

  • fair employment and management practices which don't discriminate against people on the grounds of (at least) ethnicity, gender, age and disability and (possibly) sexual orientation and caring responsibilities for others;
  • actively ensured that the services it offers do not discriminate either.

Many funders will expect groups to have a written equal opportunities policy. They may also look at the membership of the organisation, the composition of its Board or Management Committee, the language used in the annual report and other publications, and the sorts of people that use its services for evidence that the group has thought about equal opportunities issues.

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European Commission (EC)

A politically independent body based in Brussels, responsible for upholding the interest of the EU as a whole. It carries out the day-to-day running of the Union, including preparing legislation, overseeing the budget and implementing the decisions of the Parliament and Council. There are currently 28 Commissioners (one for each member state), who are supported by approximately 25,000 European civil servants organised under different departments (the Directorates-General).

The majority of EU funds are administered at a national level, however 22% are controlled by the European Commission in centrally managed ‘budget line’ programmes.

Website: www.ec.europa.eu/unitedkingdom

For information on funding go to the European section of this website.

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European Union

The European Union (EU) is a political and economic partnership between 28 different countries (member states). It provides a huge amount of money for social and economic development, mainly in its member states.

The majority of EU funds are administered at a national level, with only 24% controlled by the European Commission in centrally managed ‘budget line’ programmes like Youth in Action.

Most European funding of interest to the voluntary sector is channelled through regional structures like Regional Development Agencies (RDAs), Learning and Skills Councils (LSCs) and other co-financing organisations.

Glossary of European terms

When applying for European funding, you are likely to come across the following terms:

Call for proposal -this is an invitation for candidates to submit their proposals for action. They are published on the DG websites and also in the Official Journal of the European Union.

Candidate Countries - are those which have been granted candidate status and are under-going accession negotiations to join the EU. Current candidate countries are Turkey, Croatia and Macedonia, who were all granted candidate status in 2005.

Directorate General (DG) - the Directorates are essentially the government departments of the EU. They are each headed by a Director-General and are responsible for a specific area of European policy.

EACEA - the Education, Audiovisual and Culture Executive Agency (EACEA) is based in Brussels and works with the Directorate General of Education and Culture to manage the Youth in Action programme. Its website can be used as the main point of reference when applying to this programme, as it is used to publish calls for proposals.

EEA - the European Economic Area (EEA) was created in 1994 to allow countries of the EFTA to participate in the European single market without joining the EU. The contracting countries to this agreement are three of the four members of the EFTA; Iceland, Lichtenstein and Norway, and the 27 member states of the EU.

EFTA - the European Free Trade Association (EFTA) is an intergovernmental organisation created to promote free trade and economic integration to benefit the EU’s four Member states: Iceland, Liechtenstein, Norway and Switzerland

ENGO - European Non-Governmental Organisation, for example, a body active at European level in the Youth field.

Europa - Europa is the name of the EU’s website. It has a huge range of information and guidance available on all aspects of the Union’s activity. To navigate to the area on grant funding from the main page go to Services – Grants – then choose the relevant area. You can also view the programmes by going to the relevant DG website.

Intergovernmental Organisation - an organisation made up of sovereign states, such as the European Union (EU) and the United Nations (UN)

Member states - member states are the 28 countries which acceded to the EU since its inception in 1951. These countries are; Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.

New Neighbourhood Policy - the European Neighbourhood Policy was developed in 2004 in order to strengthen stability and security in the EU during the accession of new countries, and to counteract any division between the widening EU and its border countries. The New Neighbourhood Policy applies to countries that are immediate neighbours of the EU by land or sea; Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Occupied Palestine Territories, Syria, Tunisia, Ukraine. Although Russia does falls into this category geographically, it is covered by a different policy.

Official Journal of the EU- is a periodical published every working day in all official languages of the EU. It produces information on legislation, notices and a supplement for public procurement and can be accessed online at the following website.

Programme Countries and Neighbouring Partner Countries - are the 27 countries of the original EU accession (see Member states). Neighbouring Partner Countries are broken down into four categories: Neighbouring Partner Countries, South East Europe and Caucasus, Mediterranean Partner Countries and Other Countries of the World.

Technical Assistance Office - is a term that was previously used for the Education, Audiovisual and Culture Executive Agency.

Third Countries- is a term given to all other country-relationships to the EU, outside of the 27 member states. This includes all of the Neighbouring Partner Countries.

For information on funding go to the European section of this website.

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An assessment of an organisation or project, sometimes done by the people involved (in which case it's called self evaluation), sometimes by an independent person or agency. Often, evaluation is based on the results of monitoring. The evaluation might look at

  • what impact the work has had
  • what progress has been made towards achieving the aims and objectives of the work
  • how satisfied are users or others involved.

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Executive agency

An Executive Agency is a public institution that carries out some part of the executive functions of government. Their polices and resources will usually be fixed by the Government Departments that oversees the agency. For example, the Prison Service is an executive agency of the Ministry of Justice. Executive Agency's can also be called Non-Departmental Public Bodies (NDPBs) or Quangos.

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Exit strategy

Usually used to describe a plan for managing and financing a project or service when some particular bit of funding comes to an end. If a project doesn't have a natural end, funders often want assurance that a project is sustainable or that someone else is prepared to take on the responsibility before they commit money.

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Expenditure, resources expended

Expenditure is sometimes just used to mean 'money spent', but is used technically in Income and Expenditure (accruals accounting) to describe all the revenue spending relating to a particular period of time.

Charities preparing a Statement of Financial Activities (SOFA) have to show all resources expended - money expenditure and also the value of donated goods, services or facilities used.

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Expression of Interest

An expression of interest is often used as a pre-cursor to submitting a formal application for something, for example, a government funding scheme.

Many government departments and IGAs incorporate an Expression of Interest stage in their application processes if they anticipate large numbers of applicants, so they can use this round to sift out unsuitable applications.

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