One of the biggest challenges facing community organisation is how to get enough
money to do everything that needs to be done and, once you have that money, how to deal with it in the best way. This task is never easy, but has become especially difficult in the current economic climate and with the proposed spending cuts looming over everyone.
Your finances
It is the responsibility of the trustees or management committee to deal with the financial aspects of the community organisation honestly and in the best interests of the organisation. The more organised the organisation is with its finances, the smoother it should run and the more appealing it will appear to potential funders and members. It is for this very reason it is wise to implement a set of policies and procedures for dealing with money and to appoint a Treasurer to ensure they are adhered to.
There are certain requirements placed on charities and companies that your organisation must adhere to if it falls into either category. Even if it does not, it might be wise to have similar procedures in place so that it is clear to all who use the organisation that the financial procedures are clear and transparent. It is also beneficial to potential funders if all financial information is clear for them to see.
All organisations should consider:
- Keeping an account of the money coming in and going out of the organisation;
- Creating a set of financial rules that explain who can deal with money and how they can do it;
- Having a written budget and financial report each year;
- Who can deal with cheques and petty cash;
- Finding new ways to make money and better ways of investing money.
Funding
The state of your finances and any funding you may need are very much linked. Your financial situation will determine whether you require funding and your funding application might be unsuccessful if your finances are not in order and your details are kept properly. The management committee will need to be aware of the financial position of the organisation at all times so they can decide whether they need to apply for funding.
To apply for funding, you need to have a carefully thought out strategy. You need to begin by doing your research. You need to decide what you need a grant for and when you would need the money. Once you have made those decisions, you will have to find a grant, or another such fund, that matches your requirements.
Once you have decided on which grant you wish to apply for you will need to find out what their application process involves, as each grant will require different things, and make your application in line with this.
When applying for funding you should always:
- Be prepared! Don’t leave it to the last minute to get your finances, plans and ideas into order, this should have been done in advance;
- Consider whether there is any other way of raising the money, such as a fundraising event or letting out the building;
- Discuss ideas with the people involved with the building, both the management committee and the service users alike, they might have some good ideas for the application and it may make them feel valued;
- Put together a business/project plan. Most grant programmes require one but even if they don’t it will set out your ideas and all the relevant details of your organisation;
- Create a funding strategy;
- Make sure your organisation is attractive as possible to any potential investors – check the governing documents and financial procedures are in order;
- Be organised! Appoint someone to lead the application and get them to report back to the committee;
- Remember to persevere! If you aren’t successful at the first attempt then keep trying and keep your options open.
For more information
To get more guidance on how to prepare good funding bids, charity accounts and looking after your community organisation's money, select the links below to download our set of publications.
If you would like to talk to one our advisers, call our advice service on 0845 847 4253 from 09.30 to 13.00 on Mondays and Thursdays. Alternatively, you can email us your question and we will get back to you. Submit your enquiry here...
Download Online Guidance and Advice
Click on the following titles to download support:
Specimen Documents