Ceasing funding to voluntary and community organisations

The Council aims to ensure that it is fair and consistent in its dealings with the voluntary and community sector. This policy sets out the principles the Council will follow in ceasing funding to voluntary and community organisations. This policy will relate to future grants, contracts or agreements.

Grant funding, contracts and service agreements

All Council funding whether it is a grant, contract or service agreement should state the period it relates to. The Council is not able to make a commitment to future funding beyond that period.

Terminating funding at the end of the contract or agreement

In order to help organisations to plan ahead the Council will ensure that they have six months notice that an agreement or contract will not be renewed. This does not apply to one-off grants where organisations will be expected to apply each year.

Organisations should notify the Council if they wish to appeal within 14 days of being informed that the funding will cease. The appeal will be referred to a local Area Committee Chair or Cabinet member not involved in the original decision. If desired, the organisation can request an opinion from an independent organisation appointed by Council of this purpose, This opinion will be made available to the organisation and Local Area Committee Chair or Cabinet before the appeal. The outcome of the appeal will be put in writing to the organisation within 14 days of the decision. If the appeal is unsuccessful the organisations will be given at least four months notice that the funding will cease.

Terminating funding during the grant, contract or agreement period

The Council may terminate funding that had previously been agreed in certain circumstances. In a situation where the funding is no longer available or the criteria for funding has been changed, the Council will give six months notice.
In addition the Council may terminate funding because of the actions of the organisation. This would include circumstances where:

• the funding is not being used in the way set out in the grant, contract or agreement;
• the organisation makes public allegations against the authority, which on investigation are proved to be untrue and unfounded and the organisation continues to pursue the allegations;
• the organisation is operating illegally and risking the Council’s reputation and liability;
• the organisation is acting in a way that that contravenes the policies of the Council.

In these circumstances the Council will write to the organisation outlining the areas of concern and requesting that the organisation responds within 14 working days.

If the Council is not satisfied with the response then notice will be given that the funding will cease. The funding may be terminated immediately or in exceptional circumstances there would be a short notice period. The decision would be made by senior council officers in consultation with senior Councillors.

The organisation should notify the Council if they wish to appeal within 14 days of being informed that funding will cease. The appeal will be referred to the Cabinet.

If desired, the organisation can request an opinion from an independent organisation appointed by Council of this purpose. This opinion will be made available to the organisation and Cabinet before the appeal. The Cabinet’s decision will be final and the organisation will be informed of the decision within 14 working days.

If you require more information you can contact us at community.development@eastleigh.gov.uk