Charity Sector Funding Support During COVID19
Updated 20 May 2020
COVID-19 is a challenging time for all, but it creates unique problems for the UK's charity sector.
Charities receive income from individuals and statutory bodies. Both sources of funding are otherwise preoccupied and will continue to be for some time, particularly given the economic uncertainty that's sure to follow the end of lockdown restrictions.
Still, the Chancellor announced special charity sector funding support during Covid19. What's available and who is eligible? Here's what UK charities need to know.
Is There Charity Sector Funding Support During Covid19?
Funding from HM Treasury during the COVID-19 crisis comes from two sources.
The first is a £750 million package available to frontline charities. The funds include £360 million from statutory bodies (government departments) and a further £370 million dedicated to smaller charities (from sources like the National Lottery Community Fund).
The second source includes the provisions available to all for-profit businesses. These funds are available to charities in need of funding but who aren't a 'frontline charity'.
Who is Eligible for Funding?
All charities are eligible for funding, but the government created two groups who can seek funding either from the package announced by the Chancellor or from the business funding.
Frontline charities are those who provide vital services and help vulnerable people. These groups have been and will be identified by government departments. They include organisations like St Johns Ambulance, hospice organisations, domestic abuse and vulnerable children charities. These charities work with and on behalf of local authorities.
If your organisation isn't on the frontlines, then you can access the coronavirus support for businesses announced by the Chancellor.
What Does the Funding Cover?
Both programs provide cover for essential expenses such as paying employees and paying sick pay.
We put together a fuller picture of what's available for businesses (including charities) and employers here.
How to Access the Funding
Your access to the funding depends on what funds you have already availed of. For example, if you have already used the Coronavirus Business Interruption Scheme, then you cannot participate in the Bounce Back Loan Scheme.
Funding is available through various grant schemes and through high-street lenders. You can learn more about the lending requirements by speaking to your current bank.
There are also various grant schemes available elsewhere that cater directly to certain charity sectors. These are run independently of HMRC and HM Treasury.
Support for Charities is Available
Charities rely on individual's discretionary donations as well as government funds. Both of these are tied up, and if your charity has seen a marked decline in funding, then you're not alone.
Thankfully, there is charity sector funding support during Covid19 available to your organisation. However, the type and amount depend on your purpose as well as your accounts.
Are you unsure what funding is available to you and where to apply? Speak to an accountant at KG Accountants to learn more about the continuity programs available to you.
How KG Accountants can help
- Help and assist you to fully comply with the government guidelines on managing the risk of Covid19.
- Forecasting – both for your own planning and for the business loan applications.
- Help prepare simple cash flow monitoring tool to ensure your road to recovery is as smooth as possible.
- How to set up a payment plan with HMRC.
- Businesses who have negotiated a rent holiday.
- Our regular blog on how you can get funding during this pandemic.
- Everything you need to know on the Coronavirus Job Retention Scheme (CJRS) and furloughing.
- Managing your personal finances – our financial planning team’s top tips.
- If there’s anything else you need help with not listed above, please ask, and we’ll find a way.
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