A to Z of funding (I)


Improvement and Development Agency (IDeA)

IDeA is the Improvement and Development Agency for Local Government. It works with local authorities and their partners to develop and share good practice. Their work is carried out through networks, online resources, and support from councillor and officer peers.

The IDeA supports improvement and innovation in local government, focusing on the issues that are important to councils and using tried and tested ways of working. They also help develop councillors in key positions through leadership programmes.

Their current priorities for improvement are:

  • Adult social care, health and wellbeing
  • Children and young people
  • Culture, tourism and sport
  • Economy
  • Efficiency, funding and value for money
  • Environment
  • Housing
  • Leading local communities
  • Local democracy
  • Safer communities
  • Workforce

Further information on the IDeA can be found on their website.

> Go to top of A-Z

In kind (gifts, help)

Something other than money. A company that gives you some redundant office equipment or a prize for your raffle is giving support in kind rather than in cash. Volunteers that give their time to an organisation are giving support in kind.

> Go to top of A-Z

Income and expenditure accounts

Accounts that show Income and Expenditure for a given period are prepared on an accruals basis. They give an account of all the money received and paid out relating to activities that took place during the period. So they do not show (for instance) money received that relates to the preceding year's activities, nor do they show money paid out for goods that will be delivered in the following year. Income and Expenditure accounts are always accompanied by a balance sheet. In the commercial world they are called Profit & Loss accounts.

Receipts and Payments accounts are thought to be easier, and small charities (income and expenditure less than £100,000) are allowed by the Charity Commission to use this system of accounting if they wish. Receipts and Payment accounts show all the cash transactions that happened during the period, regardless of which financial year they relate to. If you produce these sorts of accounts you should also produce a statement of assets and liabilities.

> Go to top of A-Z

Income, incoming resources

Like 'expenditure', income is used in everyday speech but is also used technically in accruals accounting to describe all the money received relating to a given period.

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

> Go to top of A-Z

Incorporated organisations

An organisation becomes a 'body' in its own right and is described as 'incorporated' if it becomes a registered company or an Industrial and Provident Society or is incorporated under statute or royal charter. An incorporated organisation can hold property or land or investments in its own name and the liability of the people who are responsible for the organisation can be limited.

If voluntary organisations decide to become a company, they usually become a 'company limited by guarantee' rather than a company with shares (the appropriate structure for profit-distributing companies).

The accounting requirements for incorporated organisations are different from unincorporated ones. Registered companies account to Companies House. Industrial and Provident Societies are supervised by the Registrar of Friendly Societies. There has been legislation passed to create two new legal structures for voluntary organisations: the Charitable Incorporated Organisation (CIO) and the Community Interest Company (CIC). This was enacted in 2008, however the CIO structure is yet to become available.

> Go to top of A-Z


A small amount that is added. So in pay scales an annual increment is the step up of one point on the scale that staff receive each year, until they reach the top of the band for that post. This is different from the annual pay award or cost of living award. This increases the value of all the points on the scale by so many per cent.

> Go to top of A-Z

Independent examiner (of accounts)

Charities with an income of less than £250,000 (at August 2003) can choose to have their accounts independently examined, rather than audited (accounts). An independent examiner doesn't have to be professionally qualified, though the Charity Commission recommends that he or she should be a qualified accountant if the organisation's income is over £100,000. The person must be 'impartial' so they shouldn't be involved in the charity in any way that might influence them, and the trustees must be satisfied that the examiner has the necessary expertise and ability to carry out the examination.

The Charity Commission produces Directions and Guidance Notes about exactly what is required. The Commission also produces a standard form for the independent examiner's report (and also the trustee's annual report) for charities with a gross income of less than £100,000.

> Go to top of A-Z

Independent grant administrator (IGA)

Independent Grant Administrator (IGA) is a term used across the Governmentfunding website, to determine funding that is derived from government, but administered from an external source.

This can include both non-departmental government bodies and other organisations that are not government-managed, but that have been chosen by a government department to administer a particular funding programme, for example the Community Development Foundation, The British Waterways Trust or Mind.

> Go to top of A-Z

Independent sector

A phrase used to mean 'independent of government' or 'not central or local government'. It is used when local authorities contract with organisations to provide services. The independent sector consists of voluntary not-for-profit organisations and commercial, for-profit organisations.

> Go to top of A-Z

Index of Deprivation, IOD

The Index of Deprivation ranks districts to show relative deprivation. It uses 12 indicators of deprivation, covering such things as income, housing, education, environment, crime and health, and measures how much a district is above or below the national average. The individual scores are then added together to produce an overall 'deprivation' score for each district.

> Go to top of A-Z


Inflation is when money loses its value over time. In our economy this tends to happen, so goods that cost you £100 one year ago, for example, might cost you £103 today. This is inflation of 3% per annum. If inflation continues to run at 3%, the same goods next year will cost £106.09.
The opposite of inflation is deflation.

> Go to top of A-Z


All the things and systems that aren't directly involved in providing a service, but which have to be there for services to operate efficiently or consistently, like management and administration, or communications and distribution networks.

In the world generally, infrastructure means things like sewage systems, roads and bridges and electricity grids. In the voluntary sector, the word is often used to describe organisations like local development agencies (LDAs) which help other voluntary organisations work better by providing them with - amongst other things - information, advice, training, co-ordination, representation, and back-room services (like payroll).

> Go to top of A-Z

Inland Revenue

The section of the Inland Revenue that deals with charities in England and Wales is at:

HM Revenue & Customs
Charities Correspondence S0708
PO Box 205
L69 9AZ

For Scotland contact: 

IR Charities
Meldrum House
15 Drumsheugh Gardens

T: 0300 123 1073
W: www.hmrc.gov.uk

Go to top of A-Z


The resources put in - money, equipment, buildings, people's time, energy and imagination.

> Go to top of A-Z