Funding Advice and Support

Prepare Well in Advance     
Funding applications can be a lengthy process. If you have a time frame for when the funding is needed, make sure the application is timely. It is worth noting that many applications are submitted, and funding can be over-prescribed.

Funders and Agencies Can Provide Support – Ask
VSGWL can offer support by proofreading completed applications. It is good practise for someone from outside your organisation to look over an application prior to submission.

Build a Relationship With the Funder
Contrary to popular belief, funders want to provide financial support to organisations. If you are unsure if your project fits the funding criteria, or, you have any questions, contact the funder who will be happy to advise. There is usually an application guide provided with the application form, this is a valuable tool when completing the application.

Be Clear and Decisive
Be clear and realistic about your costs. Be clear about the goals, aims and outcomes of the project. Describe how the project will be delivered.

Introduce your Organisation
A brief, clear explanation of your group can be a valuable asset when seeking funding. Consider preparing this information in advance to streamline your application process.

Use Plain Jargon Free Language
Avoid using internal jargon or overly complex language when explaining your project to funders. Focus on clearly stating the funding request and the positive impact it will have on your target community.

Using Funding Effectively
New organisations may find it challenging to secure large grants. Establishing relationships with funders and demonstrating your ability to manage projects effectively can help build trust and increase your chances of future funding.

Check Your Project Costs
Funding applications can fail if the project costs do not add up. Getting someone to look over your budget can help to ensure that the funding amount applied for will cover your projections.

Managing a Grant
External grants that you receive may be restricted funding for the project. Monies must be spent on your application proposal. Contact the funder for any underspend or questions you may have about the project grant.

Recognise and Appreciate the Funder
This is sometimes a condition of a grant even if it is not, it is good practice to recognise your funders. This may be achieved by adding their logo to communications.  Ask them what they expect.

Donors to community organisations or social enterprises can often specify how their donations should be used. For instance, they might want their funds allocated to a specific project, such as purchasing a new minibus.

Unrestricted funds are donations that the organisation can use for any purpose within its mission. These funds often cover operating costs or expenses that are difficult to fund through other means.

Only a funder can decide if a donation is restricted or unrestricted. This can be indicated in a letter or through a formal agreement. While an organisation might choose to “earmark” some of its own unrestricted funds for a particular project, these funds remain unrestricted because the decision was made by the organisation, not the donor.

Fundraising for Charities in Scotland

Welcome to our guide on fundraising for charities in Scotland! Whether you're a small local organisation or a larger charity, there are many ways to raise funds and engage your community. Below, we’ll explore different types of fundraising and provide practical examples to inspire your efforts.

Types of Fundraising

• Community Events
  Organising events can be a fantastic way to bring people together and raise funds.
  Example: Charity Fun Run
  • Host a fun run in your local park. Participants can pay an entry fee, and you can encourage them to seek sponsorships from friends and family. Offer prizes for top fundraisers to motivate participation.

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• Online Crowdfunding
  Leverage online platforms to reach a wider audience.
  Example: GoFundMe Campaign
  • Create a campaign detailing your charity’s mission and needs. Share your story, use compelling visuals, and encourage donations through social media. Highlight how funds will make a difference in the community.

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• Charity Auctions
  Auctions can generate excitement while raising significant funds.
  Example: Silent Auction
  • Partner with local businesses to donate items or services. Set up a silent auction during an event, allowing attendees to bid on items throughout the night. This encourages friendly competition and increases donations.

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• Sponsorship Opportunities
  Engage local businesses for mutual benefit.
  Example: Corporate Sponsorship
  • Approach local businesses to sponsor an event or initiative. In exchange, offer them advertising opportunities at your event or on promotional materials. This can enhance their visibility while supporting your cause.

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• Merchandise Sales
  Selling branded merchandise can be a fun way to raise funds and promote your charity.
  Example: Charity Merchandise
  • Design t-shirts, mugs, or tote bags featuring your charity's logo or mission. Sell these items at events, on your website, or in local shops. Profits can directly support your programmes.

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• Regular Giving Programmes
  Encourage donors to set up monthly contributions.
  Example: Direct Debit Donations
  • Promote a monthly giving programme where supporters can sign up to donate a fixed amount each month. Share stories about how consistent contributions make a significant impact over time.

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• • • Workplace Giving

  Involve local companies in your fundraising efforts.
  Example: Payroll Giving

 

• Collaborate with local businesses to establish payroll giving programmes, allowing employees to donate a portion of their salary directly to your charity.
• This can be an easy way for employees to contribute to a cause they care about.

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• Challenges and Adventures
  Encourage supporters to take on personal challenges.
  Example: Sponsored Challenges
  • Organise or promote challenge events like trekking the West Highland Way or climbing Ben Nevis. Participants can raise sponsorships for their efforts, encouraging them to push their limits for a good cause.
  • Larger challenges, like desert walks across the Sahara or cycling challenges to Paris, appeal to adventurous supporters. There are companies that can help organise these events.

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• Grant Applications
  Explore funding from larger organisations.
  Example: Applying for Grants
  • Research and apply for grants from foundations or government bodies. Prepare detailed proposals that clearly outline how the funds will benefit the community.
  • Find out more here

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• Social Media Campaigns
  Utilise social media to engage supporters.
  Example: Hashtag Campaign
  • Create a social media challenge using a unique hashtag. Encourage supporters to post photos or stories related to your cause and donate. This can go viral and attract new donors.

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Summary

Fundraising can take many forms, from community events to online campaigns. The key is to engage your supporters creatively and authentically. Remember to share the impact of their contributions and express gratitude for their support. With the right strategy and community involvement, your charity can achieve its fundraising goals and make a real difference!

Regulation

Fundraising is a key contact between charities and the public. Get it right, and your charity secures funding and public goodwill. Get it wrong, and you risk undermining public confidence in your charity and the wider sector.

It’s up to your charity’s trustees to ensure that they – and any fundraisers working on their behalf – observe the legal requirements and, importantly, uphold the kind of fundraising practices that will encourage continued public support, rather than harming your charity’s reputation.

More information can be found here.

More Information

• Scottish Fundraising Adjudication Panel
• OSCR Guidance
• Institute of Fundraising
• Trustees and Fundraising – A Practical Handbook
• Data Protection Rules
• Fundraising Regulator Code of Practice

he Scottish Fundraising Standers Panel were established to oversee self-regulation of fundraising in Scotland. They are also responsible for fundraising standards in Scotland and to handle fundraising complaints related to Scottish registered charities, a list of which can be found on the OSCR website​

Code of Fundraising Practice

The Code of Fundraising Practice and its associated Rulebooks for Street and Door Fundraising outlines the standards expected of all charitable fundraising organisations across the UK. The first copy of the Code was published over 20 years ago and since then it has been developed by the fundraising community, through the work of the Institute of Fundraising (IoF) and Public Funding Association (PFRA).
​
http://www.fundraisingregulator.org.uk/code

If you have a good idea why you want funding, you will be aware of problems or gaps in your community. Careful research of the need is an important first step when planning your project. This will help you decide how best to tackle the problem. It will also keep everyone involved in the project focused

When identifying need some questions to ask are:

• What is the problem or issue you want to address with your project?

Why are you doing what you are doing, what needs to change?

• What evidence is there that this need exists?

This can be from your own research or using information that others can provide, local area statistics, census records etc.

• What are the reasons for the need?

Why is there a gap? Has a service been removed? Is this an ongoing issue over time?

• Have you carried out any research?

How do you know there is a need?

• Why have you prioritised this need?

There may be a number of needs not being addressed in a local area so why is this one important? Is it a service that you can provide, is change achievable?

• Why is your project an appropriate response to the need?

Why are you the best people to deliver the project?

• Have you consulted with the people your project will benefit and other relevant stakeholders?

Are you going to be working in partnership with other organizations who have you spoken to about the project and do they think it will benefit them?

• Do you know about relevant local strategies or initiatives, or other projects working in this field and how your project will fit in?

​There is no point reinventing the wheel if there is similar project to you.   Why are you not working together if there is there a capacity issue? How do you feed in to strategies and the bigger picture locally and nationally?

More information on ways of defining need and how to evidence need can be found on the Big Lottery Scotland website.

Charitable organisations and Community Amateur Sports Clubs (CASCs) can register with HMRC to claim Gift Aid, allowing them to claim an extra 25p for every £1 donation received (for basic rate tax payers).  Gift Aid will not cost you any extra.

​While charities and CASCs can claim Gift Aid on most donations, some payments don’t qualify. For donations from individuals, the donor must:

• Have paid the same amount or more in Income Tax or Capital Gains Tax in that tax year
• Make a Gift Aid declaration that gives you permission to claim it

How do I claim Gift Aid?

• You must maintain a list/database of all individuals who donate with Gift Aid as well as a signed declaration from each individual
• You make your claim on the HRMC websites portal for Gift Aid Claims https://www.gov.uk/claim-gift-aid-online or with on paper with a ChR1 form which can be obtained by calling 0300 123 1073

Your organisation can’t claim on donations:

• From limited companies
• Made through Payroll Giving
• That are a payment for goods or services or made because your charity or CASC bought goods and services
• That started as loans, but no longer need to be repaid
• Where the donor gets a ‘benefit’ over a certain limit
• Shares the charity may hold
• From charity cards or of vouchers, e.g. Charities Aid Foundation (CAF) vouchers
• Membership fees to CASCs
• Made before the organisation was recognised as charity or CASC

Note. There are special rules on claiming Gift Aid for:

• Funds from sponsored challenges e.g. overseas treks or marathons
• Charity membership fees
• Church collections
• Sale of goods on behalf of individuals, e.g. through a charity shop
• Charity events or to view charity property
  Charity auctions
• Volunteer expenses donated back to your charity or CASC
• Funds raised through charities involved in running schools

For more information on these special rules, and all other aspects of claiming Gift Aid, visit www.gov.uk/claim-gift-aid/overview.

“If you fail to plan, you are planning to fail!”
― Benjamin Franklin

We may all dread the evaluation forms at the end of any training that you attend, however by learning how to evaluate your activity’s you will discover what works or doesn’t.  How to make use of that learning to measure the difference you are making and make changes if required.

There are many different and creative ways to engage people in evaluation. But all evaluations follow the same basic format and is something that should be well thought out at the start of any project.

Aims Outputs Outcomes and knowing the difference

What Aims

Your overall aim tells everyone why your organisation exists and the overall impact you wish to have on your members or the people you work with
Example: “The Anytown community trust aims to improve the Quality of life for families living in Anytown”
Your overall aim should be focused and guided by your organisations vision, it should say your organisation would hope to achieve with resources but not a problem. A good way to think about your aims is to think of it as a magic wand question.

What are your outputs?

Next you need to think about the services that you provide some people call these outputs – the things you deliver.
Outputs are what help you to fulfil your overall aim.

Think carefully about how your activities can change the lives of the people you work with, the changes you make are your outcomes.

Example of Outcomes:

• Are about change or difference.
• Are not the activity- they are the result of the activity
• Must link logically to the activity
• Use words like improve, decrease, develop, and expand
• Should be realistic – achievable in a few years
• Should be (largely) in your power to deliver
• Should be simple
• Answer the “so what”? Question.
• Should be SMART Specific, Measurable, Achievable, Realistic and Time- related
  

  So What?

  If you’re not sure whether you’re looking at an outcome or an output asking the ‘so what?’ question may help:
  Any town community project runs a youth club – SO WHAT?
  30 Young people attend sport classes at the youth club – SO WHAT?
  These are important, but not outcomes so what came out of the youth club
  The young people learn about health and fitness Outcome
  Childhood obesity is reduced outcome
  Young people health is improved Outcome

 

Collecting evidence

There are many different and creative ways to collect the evidence to see what changes you are making from your project this could be traditional Surveys or case study’s or more creative ways like video rooms, photographs or blob trees.

Learn from & acting on your findings

Now you have all your evidence what are you going to do with it?

Hopefully your evidence will show that you are meeting your outcomes and the work you set out to achieve is on target however if this is note the case it is a good opportunity to rethink and look at how the service could be improved your evaluation is also a good piece of evidence to show your partners the work that you are achieving and can be good evidence to new funders that you wish to approach

More information and advice available form http://www.evaluationsupportscotland.org.uk/evaluation/

Policies for Organisations Overview 

By implementing comprehensive policies, a charity in Scotland can operate more effectively, safeguard its mission, and serve its community better. 

This document provides a set of suggested policies intended as a general guide to support organizations in developing or updating their own policies. However, it is important to note that these recommendations may not address every unique situation, regulatory requirement, or specific operational need an organization may encounter. Each organization operates within a distinct legal, regulatory, and cultural framework that may necessitate tailored policies, processes, or procedures to fully address its particular context and risks. 

Before implementing any suggested policies, organizations should conduct a thorough assessment to ensure alignment with their unique goals, values, and legal obligations. It is advisable to seek professional legal, regulatory, or compliance counsel to determine the applicability of these recommendations to their specific situation. 

Why do charities need policies? 

A charity in Scotland must establish and adhere to certain policies to ensure it operates legally, ethically, and effectively. These policies help the charity maintain compliance with regulations set by the Office of the Scottish Charity Regulator (OSCR) and other relevant laws.  

Without proper policies, a charity in Scotland risks legal and financial penalties, loss of charitable status, damage to its reputation, and operational inefficiencies. Policies are essential for ensuring compliance with laws, protecting trustees and beneficiaries, maintaining public trust, and achieving the charity’s objectives. Implementing these policies is not only about avoiding risks but also about fostering a healthy, effective, and sustainable organization. 

Charities in Scotland, like those elsewhere, need policies for several important reasons: Compliance with Laws and Regulations: Charities must adhere to the Charities and Trustee Investment (Scotland) Act 2005 and other relevant legislation. Policies help ensure compliance with these laws. 

1. Governance and Accountability: Clear policies establish governance structures and accountability frameworks. This helps trustees and staff understand their roles and responsibilities. 
2. Risk Management: Policies help identify and mitigate risks associated with the charity’s activities. This includes financial, operational, and reputational risks. 
3. Operational Consistency: Having established policies ensures consistency in decision-making and operations, which can improve efficiency and effectiveness. 
4. Safeguarding and Wellbeing: Policies related to safeguarding, health and safety, and welfare are crucial for protecting vulnerable individuals and ensuring a safe environment. 
5. Transparency and Trust: Well-defined policies enhance transparency, helping to build trust with stakeholders, including donors, beneficiaries, and the public. 
6. Strategic Direction: Policies guide the charity’s strategic direction, ensuring alignment with its mission and objectives. 
7. Resource Management: Effective financial and resource management policies help ensure sustainability and accountability in the use of funds.

Here are outline of the main policies to consider for any organisation. Is it not a definitive or exhaustive list. Organisations should consider their needs, set up and aims when deciding on policies to adopt. Adopting policies without proper customization and consideration of organizational needs may lead to unintended outcomes or non-compliance with relevant regulations. 

What key policies a charity should consider include: 

Policies to consider for your charity include.  

1. Governance and Compliance Policies 

• Governing Document: The charity’s constitution, trust deed, or articles of association. This document outlines the charity’s purpose, how it will be governed, and what powers the trustees have. 

• Code of Conduct for Trustees: This policy outlines the responsibilities, ethical standards, and expected behaviour of trustees. It helps avoid conflicts of interest and ensures transparency. 

• Conflicts of Interest Policy: Trustees must declare any potential conflicts of interest to ensure impartial decision-making. 

• Risk Management Policy: Identifies potential risks the charity might face (financial, operational, reputational) and provides steps to mitigate them. 

• Compliance with OSCR Requirements: The charity must file an annual return with OSCR and ensure that it is transparent in its operations, meeting the regulator's expectations. 

 

2. Financial Policies 

• Financial Controls Policy: Ensures there are processes in place for managing funds, such as separation of duties, procedures for authorising expenditure, and regular financial reporting. 

• Fundraising Policy: Ensures all fundraising is done ethically and in compliance with laws, including the Charities and Trustee Investment (Scotland) Act 2005 and the Fundraising Standards Board’s Code of Practice. 

• Reserves Policy: Details how much money the charity will hold in reserve, and how those reserves will be used, to safeguard against future financial risks. 

• Gift Acceptance Policy: Guidelines on what types of donations or gifts the charity will accept (or decline), including considerations for ethical concerns and legality. 

• Investment Policy: If the charity holds investments, this policy should outline how the funds will be invested and the level of risk that is acceptable. 

• Expenses Policy:   This sets out what is recoverable as an expense and what is not. Also who is entitled to expenses as well as how to claim. 

 

3. Operational Policies 

• Health and Safety Policy: A legal requirement for charities with employees or volunteers. It ensures a safe working environment in compliance with health and safety regulations. 

• Data Protection and Privacy Policy: Compliance with the UK General Data Protection Regulation (GDPR) is essential to protect personal data of donors, beneficiaries, employees, and volunteers. 

• IT and Cybersecurity Policy: To safeguard the charity’s digital assets and ensure safe online practices, including safeguarding personal and financial data. 

• Volunteer Policy: Provides guidance on recruitment, management, and support for volunteers, ensuring they are treated fairly and understand their roles and responsibilities. 

 

4. HR and People Policies 

• Equal Opportunities and Diversity Policy: Ensures that the charity promotes equality, diversity, and inclusion, preventing discrimination based on race, gender, disability, age, religion, or other protected characteristics. 

• Safeguarding Policy: Particularly important for charities working with children or vulnerable adults. This policy outlines how the charity will protect these individuals from harm or abuse. 

• Whistleblowing Policy: Encourages employees or volunteers to report any concerns about illegal or unethical practices without fear of retaliation. 

• Grievance and Disciplinary Policy: Ensures a fair process for dealing with disputes, complaints, or breaches of conduct by staff or volunteers. 

• Carers Policy: A carers policy clearly outlines what support is available, such as flexible working options or emergency leave, which can be crucial for individuals balancing work with caring for a loved one. 

 

5. Environmental and Social Responsibility Policies 

• Environmental Policy: Sets out the charity’s commitment to reducing its environmental impact, including sustainability practices in areas such as waste, energy use, and transport. 

• Ethical Sourcing Policy: If the charity buys goods or services, this policy ensures that it sources them ethically, taking into account fair trade, labour conditions, and environmental impact. 

 

6. Communication and Confidentiality Policies 

• Communications Policy: Outlines how the charity communicates with its stakeholders, including donors, beneficiaries, and the general public, ensuring clear, accurate, and timely information. 

• Media and social media Policy: Provides guidance on how the charity should manage media inquiries and its presence on social media to protect its reputation. 

• Confidentiality Policy: Ensures that sensitive information, such as beneficiary details or donor data, is managed with care and in compliance with data protection laws. 

 

7. Monitoring and Evaluation Policies 

• Impact Measurement Policy: Ensures that the charity evaluates its activities and measures its impact against its charitable objectives. This helps in demonstrating effectiveness to funders, donors, and beneficiaries. 

• Complaints Handling Policy: A clear process for handling complaints from beneficiaries, donors, or other stakeholders to resolve issues effectively and fairly. 

 

Legal Requirements and Best Practices: 

• Charitable Purposes and Public Benefit: The charity’s activities must be aligned with its charitable purposes and provide public benefit as defined by Scottish law. 

• Transparency and Reporting: Annual reports and accounts should be publicly available and adhere to the standards set by OSCR. 

Templates, model policies & checklists 

Search SCVO's archive of useful templates, model policies & checklists. 

https://scvo.scot/support/templates  

 

Do smaller charities need all the policies? 

Smaller charities in Scotland can certainly have fewer or less detailed policies than larger charities, but they must still address essential areas like governance, financial controls, legal compliance, and safeguarding (if relevant).  While the scope and detail of policies may be scaled down to reflect the size and activities of a smaller charity, certain essential policies are still necessary to meet legal obligations, protect the charity, and ensure good governance. 

The key is adopting a proportional approach, tailoring policies to the size and complexity of the charity’s activities, while ensuring they meet basic regulatory and legal obligations. This approach ensures that even small charities are protected, well-managed, and compliant with Scottish charity law. 

Here’s how smaller charities can approach their policies: 

1. Proportional Approach

• Simplified Policies: Smaller charities with fewer resources and less complex activities can adopt simpler, shorter, and less formal policies. These policies can still cover the essential areas but without the same level of detail or formality as large charities. 

• Combining Policies: In some cases, smaller charities can merge policies into a single document. For example, a governance and financial management policy could be combined, covering key aspects without needing separate documents. 

• Focusing on Core Requirements: Smaller charities may not need policies covering every aspect of large operations (e.g., complex investment strategies), but they must focus on key areas like financial controls, safeguarding (if applicable), health and safety, and trustee responsibilities. 

 

2. Essential Policies for All Charities

Even small charities should ensure they have the following key policies in place: 

• Governing Document: Every charity, regardless of size, must have a governing document (e.g., constitution, trust deed, or articles of association) that sets out the charity’s purpose and how it will be governed. This is required by law. 

• Trustee Code of Conduct and Conflicts of Interest: Trustees are responsible for the charity's oversight and must adhere to ethical standards. Having a simple code of conduct and a conflicts of interest policy ensures trustees fulfil their duties. 

• Financial Controls Policy: Even small charities need basic financial controls to prevent misuse of funds, ensure transparency, and comply with OSCR regulations. 

• Risk Management Policy: While it can be simple, some form of risk management should be in place to identify and mitigate key risks, especially financial or operational risks. 

• Health and Safety Policy: If the charity employs staff or involves volunteers, it needs a basic health and safety policy to comply with the law and protect its people. 

• Data Protection and Privacy: Compliance with GDPR is required for all organizations, regardless of size. Even small charities must have a policy for handling personal data, especially donor and beneficiary information. 

 

3. Policies Based on Activities

Some policies depend on the specific activities of the charity. For smaller charities, certain policies may not be necessary unless they engage in particular types of work. For example: 

• Safeguarding Policy: This is essential if the charity works with children, vulnerable adults, or other at-risk groups. If the charity doesn’t engage with these groups, a safeguarding policy may not be required. 

• Fundraising Policy: If the charity engages in significant fundraising activities, even small-scale, it should have a simple fundraising policy to ensure compliance with legal standards and ethical practices. If fundraising is minimal, this policy can be short and focused. 

• Volunteer Policy: If the charity uses volunteers, a basic policy that outlines volunteer roles, responsibilities, and rights should be in place. If no volunteers are involved, this may not be necessary. 

 

4. OSCR Expectations

OSCR, the charity regulator in Scotland, understands that small charities may not need the same level of detailed policies as large charities. However, they still expect all charities to: 

• Operate in line with their charitable purposes as stated in their governing document. 

• Ensure sound governance and financial management through appropriate processes. 

• Be transparent and accountable, particularly when reporting to OSCR and when handling donations and public funds. 

OSCR’s guidance often encourages proportionality, meaning smaller charities can scale down the complexity of their policies as long as the fundamental legal requirements are met.