When should this model be used? This funding has 3 uses. –It can be used to provide funding for the start-up phase of a new organisation or to help an existing organisation to grow –It can be used to support an organisation to purchase a piece of equipment so they can deliver a different service or support a new service user –It can be used to build capacity of an organisation or a number of organisations through training This is aimed to help support commissioners to develop the market and make short term investments to mitigate long term costs
Important issues Commissioners need to ensure that in using this they wont give funded organisations a competitive advantage over the rest of the market This shouldn’t be used to purchase a service The County Council shouldn’t be expected to fund 100% of the investment costs. Other funding should be sought, including loan and equity finance
Criteria The main criteria on which we will judge applications for this fund are: Value for money Benefits investment will bring (Impact) Investment readiness Other funds attracted (feel free to change these) Add in your own
Communication process Ensure the market is aware of the funding opportunity and what the associated priorities and criteria are by using some of the following communication channels: –Conferences –Advertising in papers etc –VCS partners networks –VCS Newsletters –Partners Websites We should also ensure potential applicants understand how the process works and have access to all relevant info including terms and conditions and how we will judge applications. This will allow applicants to maximise their chances of success.
Application process It should be done through a competitive process using a business case that is provided by the applicant or an application form (depending on size of investment) For small scale capital investments Applications will be invited from all voluntary and community organisations that can meet the criteria and deliver the outcomes Decide how you want to manage the process. Will the deadlines be once a year, quarterly, monthly or when you have sufficient applications?
Appraisal process For larger investments you may want to be more strategic and select partners (you need to consider fairness) you should –elect an appraisal panel of 3-7?? –user and VCS participation is highly desirable on the appraisal panel (need to consider conflicts of interest) –For larger investments you may want to work with commercial or other lenders e.g. social finance or future builders.
Appraisal process continued You should use a standard scoring matrix to ensure fairness. Where possible it is best if the appraisal panel meet to decide who gets the funding. It is up to you how you undertake the appraisal some choices include –Sending out the applications beforehand – reading the applications individually when you arrive then discussing them –Marking individually –Marking as a group
Monitoring process Monitoring should be proportionate to the size of the grant and agreed before money is transferred The funded organisation will be given an offer letter that will form a grant contract. They will be monitored on delivery of this contract. The letter will state the outputs and outcomes that were set out in the application It will also state how success/failure will be measured against these. If organisations continually fail to deliver or spend funding inappropriately funding can be clawed back, however this should be as a last resort
Offer letter A standard offer letter template is available for use This document is designed to be flexible. Feel free to add or take out any bits that are required/not relevant The main points that need to be changed/considered are highlighted within the template Please consult legal to ensure this contract is suitable for your needs The template can be found on add web address
Timescales It is anticipated that the Scheme will be up and running by ?? Criteria and outcomes agreed by Info communicated Closing date for applications is ?? Appraisal panel to meet ?? Funding given to successful applicants by ?? Project starts ??