Many churches and Christian organisations receive grants from organisations such as the Big Lottery Fund (often the Heritage Fund), governmental departments or other charitable organisations. 

Some charities may not have the expertise to review legal agreements (also known as the deed of grant) which arise from a grant and are unsure of what to look out for when reviewing these agreements (which are usually a minimum of 20 pages!). Even the words ‘deed of grant' can seem obscure and intimidating.  

I regularly advise organisations involved in awarding and receiving grants. Below, I've outlined the key considerations to keep in mind when facing a review of the deed of grant (often also referred to as a grant agreement). 

Aim

The first thing to consider is what the primary aim of the agreement is and bear this in mind when reviewing. An agreement aims to ensure that:

• Funding is only used for the purposes intended
• Activity and expenditure can be monitored
• Action can be taken to suspend or terminate activity where the grant is failing against its objectives
• Misused or surplus funding can be recovered

With this in mind, don't be surprised if the grant giver (grantor) has inserted provisions allowing them to take back the grant monies if you are discovered to have used the grant for anything but its specific intended purpose, or if you fail to abide by the terms of the agreement. 

Purpose

Don't assume the agreement contains the information you inserted into your application. Take care to check that the intended purpose of the grant (the reason that you will use the grant) is explained carefully - this restricts what you can use the grant for.  

Budget

Compare what the agreement records regarding your budget, timelines and outcomes. Check if the agreement allows any flexibility or changes in your work plan, such as reallocating funds, modifying timelines, or adjusting indicators.  

Compliance

Compliance requirements are the rules and regulations that you must follow to fulfil the grant agreement, such as ethical standards, financial management, data protection and audits. Reporting requirements are the deliverables and documents you must submit to the grantor to demonstrate your progress and achievements, such as quarterly, financial and impact/evaluation reports. Make sure that you understand and agree with the compliance and reporting requirements, and that you have the capacity and resources to meet them.

Negotiate

Don't be afraid to request amendments if needed and notify the grantor if any information in the agreement is not as agreed in your proposal. 

Monitor

Once you sign the agreement, you should keep a copy of it in a secure and accessible place and share it with your team and stakeholders. You should monitor the agreement regularly to ensure that you are complying with the terms and conditions and that you are achieving the expected results. This will ensure that you lessen the risk of failing to comply with its terms and opening yourself up to the risk of the grant funds being recouped from you.   

For more information

For more information about grant agreements, please contact me.