Foundation Scotland carries out due diligence on all applications we receive to check eligibility for the funds we manage, assess risk and prevent fraud.
As a minimum, we carry out checks on your supporting documents as described below to ensure they meet our eligibility criteria. We may ask for further information about how your organisation meets these criteria during our assessment process.
Please read the criteria below carefully and ensure your Committee or Board understands what is required. Unfortunately, if you cannot meet these criteria, we cannot progress your application. If you are a registered company, we will download you governing documents and accounts (if independently examined or audited) from the Companies House website; you do not need to provide these with your application.
In addition, please refer to the relevant fund page you're applying for to check if there are any further criteria you need to meet, such as the location of those benefitting from your project.
- There must be a minimum of three unrelated persons on the management committee or Board. This is to ensure that the group has a range of perspectives and experience and is not dominated by the interests of a single family or similarly connected individuals
- For the same reasons, the majority of your management committee or Board members must be unrelated.
- The quorum for your management committee or Board meetings must be at least three unrelated members present.
- Your organisation has charitable purposes, and these are described in your governing document.
- Your governing document includes suitable restrictions on the disposal of assets under the organisation’s control (a charitable ‘asset lock’) and its management committee or board members' remuneration. It should feature:
- A charitable dissolution clause (or ‘asset lock’) stating that on winding up the organisation’s net assets must be put towards a similar charitable purpose(s) to that of the organisation (which may include a named charitable organisation with a similar charitable purpose).
- Suitable restraints on the provision of benefit to individuals. Assets should not be distributable to, or otherwise used for, the benefit of members or individuals beyond that which can reasonably be considered charitable.
- The quorum for your management committee or Board meetings is referred to in your governing document and is at least three unrelated members present.
- If your governing document allows for the remuneration of any Board or management committee members (for example, if the lead member of staff is also a Board Member), then your organisation must comply with OSCR’s guidance on this. We will require the following:
- Your organisation’s governing document must allow for only a minority of those on the Board or management committee to be remunerated for their services (as Trustees/Board Members/committee members or under contract).
- None of those who are remunerated as such should be involved in decisions about that remuneration
- Information on the nature of the services to be provided in relation to the remuneration, level of remuneration and evidence of how this was agreed and by whom.
Accounts & Financial Procedures
- You must be able to supply your latest set of accounts, inspected and signed by an independent party. To understand what we mean by this please visit ’Independent Inspection of Your Accounts’]. However, if your organisation is less than 15 months old, we do not require you to submit accounts. Please note we do not accept abbreviated or micro-entity accounts.
- The organisation name on your accounts must match the name on the governing document and bank account.
- Your financial transactions are required to be either authorised (before payment) or checked (after payment) by another person independent of the person initiating the payment.
- None of your appointed account signatories can be related. This is to act as a safeguard against fraud or misuse of charitable funds under the organisation’s control.
- If your organisation's core work (as stated in your governing document), or the project you are applying to us for, includes work with children and/or vulnerable adults it must have an appropriate Safeguarding Policy and Procedures (setting out how the policy is implemented) in place prior to application. This must as a minimum cover the following:
- Recruitment and selection of employees and volunteers
- Employee and volunteer induction and training in safeguarding
- Safe arrangements for all work involving vulnerable adult/children and young people, including procedures for responding to and reporting abuse or suspected abuse
- Contact details, including at least one nominated Safeguarding representative.
- Applicants are expected to have adopted or be developing, other policies and procedures appropriate to the organisation’s size and nature, and in line with any legal requirements. For example, a Volunteering Policy and/or Equal Opportunities Policy.
If you have any questions regarding the above criteria send an email to firstname.lastname@example.org