A to Z of funding (P)


Payroll giving

Payroll Giving is a tax-effective way for employees to make donations to charities of their choice. Under this scheme donations are not taxed as income for the employee, which increases their value to the charity. For example, a £5 monthly donation under payroll giving will only cost the employee £4 out of their net salary. This means that the government is agreeing to give up the income tax on that £10 to encourage giving to charity.

For more information see the payroll giving website at www.payrollgiving.co.uk

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Performance indicators

Performance indicators provide a way of measuring how well an organisation is 'performing' so that it can be compared with others or with past achievements. Performance indicators often become tied up with targets.

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Philanthropy, philanthropic

Philanthropy is defined in the Oxford dictionary as ‘the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes’.

A philanthropic act is one which benefits other people, and a philanthropist is a person that does good to others.

Philanthropic is a term often used in place of the adjective, ‘charitable’, in the American non-profit sector.

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Pilot scheme

When something is tried out for the first time it is a 'pilot'. Pilot schemes often trial something in a small area or with a small set of people. If successful, the scheme is 'rolled out' elsewhere.

This term is often used by government departments when trialing a new funding scheme.

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Primary Care Trusts (PCT)

PCTs are free standing, legally established NHS bodies, able to make decisions on investment in primary care premises, develop incentive arrangements for clinicians and staff, and develop closer working partnerships with local authorities, through joint commissioning arrangements, or as providers of integrated community care services.

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Private sector

Used in contrast to the public sector and the third sector or the voluntary sector, the private sector is that part of the economy not controlled by government and operating for commercial ends, 'for profit'.

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An increasingly common form of government funding, occurs most extensively at local authority level and particularly involves voluntary organisations working in aspects of health, disability and social welfare. See commissioning, contracts and tendering.

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If you make more than you spend on a given thing or over a given period, you have made a profit. In voluntary organisations this is usually referred to as a surplus because the money isn't given to shareholders or staff, it's used by the organisation to further its aims.

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Project, project funding

A project is usually understood as something that a group or organisation does - an activity or a service. So it's part, but not necessarily all, of the organisation. Many groups run several projects, in which case what's not a project is often called the 'core' of the organisation. There is a big debate about the funding of core costs.

Because of the difficulty of getting funding for core costs, some organisations have become very good at packaging up their core functions as separate 'projects'. So their newsletter is a separate project, their need to buy publications becomes a 'library and resources' project, someone answering the phone is a 'helpline' project, and so on.

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Application, bid, tender. The word is often used for large projects where the document is quite long and complicated.

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The organisation that actually runs a service is the provider. Used in contrast to the 'purchaser'. A health authority might purchase a service that a voluntary organisation provides.

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Public Benefit

The 2006 Charities Act highlighted the requirement for all charities' aims to be, demonstrably, for the public benefit.

Public benefit is the new legal requirement that every organisation set up for one or more charitable aims must be able to demonstrate if it is to be recognised, and registered, as a charity in England and Wales.

Introduced on 1 April 2008, all organisations wishing to be recognised as charities must now demonstrate, explicitly, that their aims are for the public benefit.

The Charity Commission has produced guidance on public benefit. Every charity has to consider this guidance and respond appropriately, this is known as the public benefit requirement.

The guidance sets out two principles that charities must satisfy: there must be an identifiable benefit in a charity's activities, and the benefit must be to the public, or a section of the public.

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Public sector

That part of the economy that is concerned with providing government services (health, education, social security etc) at all levels.

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Pump-priming money

Money to start something off.

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The organisation that pays for a service. Where several agencies have an interest in a service, one may be described as the 'lead purchaser'.

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