A to Z of funding (G)


Gift Aid

A tax-effective way of making a one-off gift to a charity. The gift can be for any amount and be one-off or regular. The charity needs to register with Inland Revenue in order to claim repayment of tax.

There is more information about Gift Aid on the HMRC website

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The very highest level of power and responsibility in an organisation - the Board of Trustees or Management Committee, for example. Governance is concerned with guarding the values and purpose of the organisation, setting direction and policy, acting as a final court of appeal for internal disputes and overseeing management, but not getting involved in day-to-day matters.

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Governing document, governing instrument

A governing document (sometimes referred to as a governing instrument) is the formal document which sets up a charity and which the Charity Commission recommend contains all the information about:

  • what the charity is set up to do (objects)
  • how the charity will do those things (powers)
  • who will run it (charity trustees)
  • what happens if changes to the administrative provisions need to be made (amendment provision)
  • what happens if the charity wishes to wind up (dissolution provision).

Essentially the charity trustees' 'instruction manual' for the charity, as well as a legal document, a governing document should also contain the following administrative provisions:

  • how the charity trustees will run it
  • internal arrangements for meetings, voting, looking after money, etc.

There are different types of governing document depending on the organisation:

  • constitution or rules
  • trust deed
  • memorandum and articles of association.

For more information and guidelines about governing documents go to the Charity Commission website.

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A gift of money to support an organisation or an activity. A grant is not a contract; there is no legal obligation on the recipient to provide a particular service or product.

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Grant-in-aid funding is given to a Civil Society Organisation (CSO) to carry out activities that the CSO chooses, within broad parameters agreed with the public body. The management of this grant, from the funding body, is deliberately “arm’s length”. In contrast, grant-funding is used to fund a specific and agreed activity of a CSO.

A grant-in-aid grant is used when there is a high level of trust between the government department or IGA, and the CSO.  Often, the CSO carries out work that might be carried out directly by the State in other countries similar to the UK.  For example, grants-in-aid are used in central government to fund bodies such as national museums.  At local level, grant-in-aid agreements are often used to fund bodies such as Councils for Voluntary Service and Race Equality Councils.

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