SCOTTISH RURAL PARTNERSHIP FUND
INFORMATION NOTE 2003-2004
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Background
The Scottish Rural Partnership Fund was established to provide resources to support the development of communities throughout rural Scotland. The Fund offers grant aid from three separate schemes. They are:
These schemes have different aims and objectives. This note provides details of each of the schemes. You will wish to consider which of these schemes is best suited to your project.
Contacts
If you have queries regarding any of the information in this document please contact:
Sheena Lindsay
Scottish Executive Environment and Rural Affairs Department
133, Pentland House
47 Robb's Loan
EDINBURGH EH14 1TY
Telephone: 0131 244 4069
E-mail: sheena.lindsay@scotland.gsi.gov.uk
Fax: 0131 244 3101
Purpose of the Scottish Rural Partnership Fund
The Scottish Rural Partnership Fund (SRPF) offers funding to support communities in rural Scotland in taking forward rural development activities. The objectives and criteria for the 2003-2004 round of the Fund are consistent with the Scottish Executive's overarching goal of closing the opportunity gap - ensuring that everyone in rural Scotland can access the opportunities and services that will enable them to have a good quality of life - and creating communities and services that are sustainable in the longer term. The objectives and criteria also seek to respond to some of the issues that have been identified by rural communities as priorities during our consultations with them over the past two years.
What is rural Scotland?
A framework for defining rural Scotland is now in use across the Executive. Within this framework, a core definition defines rural Scotland as settlements with less than 3,000 residents. However, we recognise that it is not suitable for all purposes and, therefore, a framework approach has been adopted. This means that other definitions can be used to build upon the core and allow individual initiatives to be effectively targeted. For the purposes of the Scottish Rural Partnership Fund, we do not consider that it would be helpful to impose the core rural definition as there may be settlements of 3,000 people or more that experience aspects of rurality, or provide services to the surrounding rural area. We will, however, use this as a guide and judge each application on the extent to which it will benefit rural communities.
Invitation for applications
The SRPF is an annual, competitive fund, which invites applications from not-for-profit community organisations. We fund a wide variety of projects (both small and large) from a range of organisations, from local community groups to larger voluntary sector groups, or partnerships. Awards are made based on the quality of the project and the application received.
Choosing the best fund for your project
The Executive offers a range of funding to the voluntary sector and you may wish to consider which fund best suits your project. Details of available funding can be accessed on the Executive's website at http://www.scotland.gov.uk/library5/social/gvsg-00.asp
The SRPF has three funding elements, which have different objectives and criteria:
a) The Rural Strategic Support Fund facilitates the establishment of local rural partnerships, and provides funding for other groups that wish to promote rural community capacity building at a local or national level. This includes providing support and advice for communities in taking forward local needs assessments and projects to build capacity on a specific issue; and enabling rural communities to link into local and national policy processes.
b) The Rural Challenge Fund is for projects, which are focused on developing or rolling out innovative ways of delivering services that tackle specific rural problems, or create a wider range of opportunities in rural areas.
c) The Local Capital Grants Scheme assists local voluntary, youth and community organisations to provide new or upgrade existing premises for educational, social and recreational activities.
Eligibility
Community support is essential, and we need evidence of consultation with the local community in developing the bid. Applicants must demonstrate that projects have arisen from a need identified by the local community (for example, through the Community Planning process or a local needs assessment). The community should be involved at key stages of the project and may also be directly engaged in developing the project. In developing projects/partnerships, applicants should show an awareness of existing delivery mechanisms (for example, established Local Rural Partnerships and Social Inclusion Partnerships), and consider how they fit into the bigger picture. Local bodies and partnerships with a direct interest in the bid should be involved in and committed to the project. We would encourage such bodies to sign up as key partners and provide match-funding.
Projects/partnerships which are ineligible for support from all schemes include:
businesses and profit making bodies, although commercial organisations may submit transport related bids for a service which is additional to local statutory service provision;
projects/partnerships involving the production, processing and marketing of agricultural and fisheries products, and other activities associated with agriculture and fisheries;
projects/partnerships that are already in existence and are seeking ongoing funding (with the exception of Local Rural Partnerships that have recently been established and have not previously received core funding from the Rural Strategic Support Fund, or from any other source of Scottish Executive funding);
applications for projects/partnerships where the match funding will come directly from another Scottish Executive fund or budget (if you are unsure, please ask);
projects/partnerships that duplicate statutory service provision; and
projects/partnerships whose total costs will exceed 1 million.
Equal opportunities
The Executive is committed to social justice and equality of opportunity for everyone in Scotland. The Scotland Act defines equal opportunities as the prevention, elimination or regulation of discrimination between persons on grounds of sex or marital status, on racial grounds, or on grounds of disability, age, sexual orientation, language, social origin, or other personal attributes, including beliefs or opinions, such as religious beliefs or political opinions. Applicants should ensure that their proposals offer equality of opportunity for all groups that might benefit from the proposed project.
Capital projects
If the project involves the renovation or construction of a building, contact your local authority's Planning Department for information about building warrants and planning permission (including access to the building from the road). Although, we do not expect permission to be in place prior to an award of grant, we will expect the project to submit a copy of the building warrant and planning permission before any grant award is paid.
Planning your project
Successful projects/partnerships are expected to be in a position to spend their full grant allocation during each of the year(s) for which it is offered. Therefore, please think very carefully about the aims of your project/partnership and plan accordingly. While we are aware that delays can occur which are outwith the applicant's control, and which may hold-up the project, it is not always possible for us to carry forward funding from one financial year to the next, as the Department does not have its funding carried forward in this way.
Funding
The SRPF contribution to your project must be "match funded" from other sources. These other sources can include Public, Private, Voluntary or Charitable sector, or community organisations that are willing to provide funds to help your project to fruition. We will also accept "in kind" match funding up to a maximum of 25% of the total costs of your project. In exceptional cases (and particularly in the case of small, community-led projects/partnerships) and with prior approval from the Department, we may consider in-kind match funding of over 25% of eligible costs. You may wish to note that the Scottish Executive's financial year runs from 1 April to 31 March each year.
Successful applicants will be asked to provide confirmation of match funding before any grant is paid.
It should be noted that the level of grant offered will be the minimum deemed necessary for the project to proceed and, therefore, we may not always offer the full amount of funding requested.
Timing
The 2003-2004 round of the Fund opens on Friday 30 August 2002. The closing dates are as follows:
| Completed application forms to be sent to the Scottish
Executive by Friday 25 October 2002. |
| Completed application forms to be sent to your local authority by Friday 25 October 2002. |
Successful applicants will be notified in January 2003, with payment of grant commencing in the new financial year (April 2003).
How will the decision process be conducted?
For RCF and RSSF applications, officials from the Scottish Executive will make an initial assessment of each bid, consulting officials across the Executive that may have an interest in the project/partnership. In addition, the views of Community Planning partnerships will be sought on the priority, which should be given to RCF and RSSF applications within their area. Local Rural Partnerships will be consulted on RCF bids within their area. This information will be considered by the Scottish National Rural Partnership, which will offer advice on the bids to Ministers, who will take the final decisions on the award of grant.
For LCGS applications, each local authority collates applications from their area and submits a prioritised list of those they are willing to fund to the Department. As a general rule, the first priority of the local authority usually receives funding. However, this is not always the case and Scottish Ministers take the final decisions based upon the quality of the project, the funding available and the total number of projects competing for grant-aid across Scotland. Once a decision has been taken, the Department will advise local authorities of those project(s) that it proposes to support in the next financial year. Local authorities then contact successful applicants and help them to complete the formal application form (LCGS1), which must be submitted, along with supporting documentation, before a formal offer of grant can be made.
Below are further details of the three funds. Please consider carefully which one best suits your project and take the information provided into account when putting together your application.
THE RURAL CHALLENGE FUND
Nature of Assistance: Capital and revenue grants.
Aim of the Fund
The Rural Challenge Fund (RCF) provides funding for rural communities to develop projects that find new ways to tackle local problems, or create a wider range of opportunities in rural areas. We are particularly interested in projects that pilot new ideas, and will also fund projects that roll out and build on existing good practice. The Fund is run as an annual competition and successful projects will be chosen on the basis of the objectives and criteria set out below.
Qualifying Activities
The Fund is open to non-profit making community or voluntary organisations, or partnerships in rural Scotland. Most of the funding is provided to local projects. However, we will also consider national bids, if they are of benefit to rural communities across Scotland.
Projects should tackle the main objective of the RCF, which for 2003-2004 is to "close the opportunity gap by developing sustainable services that are accessible to those living in rural areas". Where appropriate, we will prioritise projects in areas, or addressing groups, that have the greatest social need in terms of deprivation and a lack of existing services. We would also welcome bids in the 2003-2004 round that develop services for older people. Applicants must demonstrate that older people have led or been actively involved in the development of the project.
Projects must demonstrate how they will provide a new way of addressing an issue, or that they are rolling out, and building on existing good practice in a new area.
Applicants may also wish to consider the following points in preparing their bids:
Applications that contain both urban and rural elements will be considered, but the rural element must derive the greater benefits from the project.
Consideration will also be given to "umbrella" bids where several projects from different bidders have been grouped together into a combined bid on a geographical or themed basis.
A detailed guide to the criteria is included at Annex B.
Projects that are ineligible for support under the SRPF ( as detailed on this information note) are also ineligible for support under the RCF.
Level of Grant
Capital and revenue grants of up to 50% of eligible costs, subject to a maximum overall grant limit of 50,000, are available on a competitive basis for a minimum of one and a maximum of three years.
LOCAL CAPITAL GRANTS SCHEME
Nature of Assistance: Capital grants.
Aim of the Scheme
The Local Capital Grants Scheme encourages and assists local community organisations to provide new, or improve existing premises for educational, social and recreational purposes. Please note that those wishing to apply should contact their local authority, which will administer the scheme and submit applications for their area to the Scottish Executive.
Qualifying Activities
Grants are made by the Department under the Further Education (Approved Associations) (Scotland) Grant Regulations 1989 and will only be available to approved associations. The definition of an approved association used by the Department is:
" any organised body of persons, whether corporate or unincorporate, whose objects include the development of further education, provided that Scottish Ministers are satisfied as to its constitution, financial stability, and fitness to receive grant and that its activities are not conducted for private profit".
Guidance on constitutions is provided at Annex A of this minute.
Priority is given to projects in rural areas and in areas with the greatest social need, particularly in terms of deprivation and a lack of existing services or facilities within the community. All applicants must:
cater for all ages and interest groups within the community. If financial assistance is sought by a religious organisation, the building must be genuinely intended for use by the community as a whole and planned with their needs in mind. The availability of facilities to all people in the local community for community use (and not merely to individuals and organisations associated with the religious organisation) must be guaranteed for a period of not less than 20 years. Facilities should also be managed by an independently constituted community organisation established to operate facilities on an open basis. Halls which are managed exclusively by one religious organisation are not eligible for grant;
offer flexible facilities, so that a range of services, including confidential services, can be offered from the building;
demonstrate that they have considered the ongoing sustainability of the building, for example the introduction of energy conservation measures, such as double glazing, insulation and underfloor heating, which will reduce the running costs of the Hall in years to come. They must also demonstrate how ongoing running costs for the building will be met;
prove that there is security of tenure of the facilities either by ownership or by lease of not less than 21 years from the year in which the offer of grant is formally accepted;
raise the balance of the project costs from their own funding efforts. If the total costs include expenditure ruled as ineligible for support through the LCGS, such expenditure will need to be met by the applicants. Loans, where they can be obtained, may also count towards the applicant's share. The Department will, however, wish to see the terms and conditions of all loan agreements if applicable.
If you intend to apply for grant, it is important that you contact your local authority at an early stage to discuss your project, and to get information and advice on taking it forward. Any organisation intending to purchase, build new, or alter existing premises should seek professional advice from a registered architect or chartered surveyor following initial consultation with their local authority.
Eligible costs include:
purchase of land or buildings;
erection of new buildings;
adaptations, extensions, improvements and major renovation (incl. major structural repairs) of existing buildings;
professional fees e.g. architect, surveyors fees etc;
initial purchase of furniture and equipment;
energy conservation measures such as double glazing, cavity wall and loft insulation, installation of false ceilings if it forms part of an overall conservation programme;
VAT, where such a charge is appropriate. (The onus will be on the organisation to determine whether or not a charge should be made.)
Projects that are ineligible for support under the SRPF ( as detailed on this information note) are also ineligible for support under the LCGS. In addition, we will not accept applications for projects under the LCGS for:
projects on which work has already started or in aid of expenditure to which an applying organisation has committed itself;
investigation costs on sites not subsequently used for the project;
landscaping, car parks, access roads, boundary and retaining walls and other works indirectly related to the construction or improvement of premises unless necessary to meet planning authority requirements;
furniture, fittings and equipment of a replacement nature;
work of a maintenance or routine repair nature;
expenditure on bar facilities or associated areas;
property where the sum of the total grant assistance from the public sector plus the amount due to heritable creditors is greater than the current valuation of the property and/or site.
Level of Grant
Under the scheme grants of up to 50% of eligible costs are available, subject to a maximum grant limit of 100,000. The local authority must be prepared to match fund every project they submit to the tune of 25% of the total eligible costs, with the balancing contribution being raised by the applicant. Local authorities should not submit projects that they would not be prepared or not be able to fund. In exceptional circumstances the Department may consider grant-aiding projects where an applicant organisation can demonstrate that it is able to raise 50% of the project costs without recourse to the local authority. However, in such cases, the local authority will still be expected to commit 25% initially, to cover costs in the event that the community is unable to raise the full 50%.
Role of the Local Authority
The initial role of the local authority is to administer applications within their area and to submit a prioritised list to the Environment and Rural Affairs Department of the Scottish Executive. Once offers of funding have been made to projects, the local authority will be responsible for the day to day administration of the project(s) within their area. The payment of grant will be the responsibility of the Scottish Executive.
The local authority must be prepared to match fund every project they submit to the tune of 25% of the total eligible costs. Local authorities should not submit projects that they would not be prepared, or not be able to, fund.
Once an offer of funding has been made, it will be for the local authority to arrange for the detailed examination of the legal, architectural, contractual and financial aspects of the project. (This arrangement will also apply when more than one authority agrees to co-operate
in assisting a project). This arrangement will be expected to continue for the duration of the project. To prevent problems occurring later, the local authority should ensure that:
the organisation is eligible for grant
the organisation has, or is about to obtain, its contribution to the capital costs;
the organisation has, or is in the process of seeking, planning permission and building warrants;
the organisation owns/has security of tenure to the property; and
the project cannot proceed without public funds (the funds requested must be the minimum required for the project to proceed).
Where more than one local agency, or local authority Department is involved, the lead contact in the local authority should act as a broker, either within the local authority itself, or with other local partners through the Community Planning process.
All queries from the project relating to the progress or administration of a projects application or award of grant should be made to the relevant local authority in the first instance.
How do I apply?
The Scottish Executive issues a letter in each year to the Chief Executives of all local authorities in Scotland inviting them to submit, in priority order, projects from community and youth organisations that are seeking grant aid under the local capital grants scheme for the following financial year and which the authority are willing to support. Organisations wishing to be considered by the local authority for inclusion on this list should ensure that their completed application form is lodged with their local authority as soon as possible.
THE RURAL STRATEGIC SUPPORT FUND
Nature of Assistance: Revenue grants and grant for minor capital costs.
Aim of the Fund
The Rural Strategic Support Fund (RSSF) promotes rural community capacity building at a local or national level. It provides funding for the establishment of local rural partnerships (LRPs), for other community-led groups that wish to take forward time-limited work locally and for national projects that support capacity building activity across rural Scotland. Capacity building can include providing support and advice for communities in taking forward local needs assessments and local projects; and enabling rural communities to link into local and national policy processes.
Qualifying Activities
Local Rural Partnerships: The RSSF is open to LRPs covering a specified rural area. There are two broad types of LRPs. Strategic LRPs usually cover a local authority area, and engage local government, agencies, and the voluntary and private sectors at a high level to plan strategically for the rural area. These Partnerships should be linked to, or be represented on the local Community Planning partnership. Area LRPs cover a smaller community, such as a district or village and support rural communities at a local level. Area Partnerships should link with the Community Planning process, either through the Strategic Partnership (if one exists), or directly through local Community Planning structures. All LRPs should:
be crucial to local rural development in the area, and be able to demonstrate that its activity could not be taken forward by another Partnership within the local area;
be community-led and include a range of bodies with a role in local rural development;
present a clear strategy to deliver capacity building at a local community level; and
demonstrate how they will link with the local community planning process, outlining their role in the community planning process during the proposed funding period.
The partnership should have a constitution or articles of association, so it is able to receive funding in its own right. Guidance on constitutions is provided at Annex A of this minute. Although partnerships should demonstrate their links with the Community Planning process, RSSF grant will not be awarded to fund core community planning activities.
Local capacity building projects: Capacity building projects should be time-limited and seek to address a local issue. For example, we would consider funding a local needs assessment, either as a pre-cursor to establishing an LRP or to assess the demand for/viability of taking forward projects that address specific issues. We would also consider projects that build initial links to support rural communities in addressing specific issues.
National capacity building projects: Projects to support capacity building throughout Scotland will also be considered. For example, developing and providing training for community groups.
A detailed guide to the criteria for all RSSF applicants is included at Annex B.
Projects/partnerships that are ineligible for support under the SRPF ( as detailed on this information note) are also ineligible for support under the RSSF. In addition, we will not accept applications for projects/partnerships under the RSSF that:
are seeking funding for major capital work, such as refurbishment or other building works; and
in the case of Local Rural Partnerships, those that are seeking ongoing funding for core costs, having previously received a grant to cover this item from the RSSF.
Level of Grant
Local Rural Partnerships can apply for pump-priming grant. Up to 50% of eligible costs will be payable in year one, up to 33% in year two, and up to 16% in year three. Pump-priming grant is available to assist with the costs of core activities of local rural partnerships. This includes the employment and training of community development agents.
Local and national capacity building projects. Grant of up to 50% of eligible costs is available up to a maximum amount of 50,000.
The maximum funding period for all categories is three years.
If there is more than one application from an area, applicants should decide whether there are any resources they could share. Local agencies that are members of an LRP should consider whether they can offer any 'in-kind' assistance, such as premises or IT equipment.
Annex A
THE ORGANISATIONAL STRUCTURES1
Steering groups
Whether you are starting a scheme from scratch or reviewing an existing service, a steering group can be a useful way of managing a project. The steering group is there to oversee the planning and the launch (or re-launch) of the service, and members can share tasks and pool ideas to keep things moving.
A steering group will be able to consider the future direction and management of the project. Supporting, managing and developing the service are all the management committee's responsibility.
Constitutions
Any group of people working together with a common aim is a legal relationship even without any formal agreement. A constitution simply sets out rules for this relationship and explains both the obligations and the responsibilities of the group individually and as a whole. By adopting a constitution a group stands a much better chance of avoiding problems and, in the event of things going wrong, will be clear about how to handle disputes.
Legal structures
There are two main legal structures - unincorporated associations and incorporated associations and each has different advantages and disadvantages. We describe these in more detail below.
Many organisations worry about committee members' personal liability if things go wrong. The solution is to register the group as some form of incorporated association. This gives the organisation a legal identity of its own, able to own property or enter into a contract. More importantly, the group may be sued, but not the individual members.
It is possible, however, for a group to use an unregistered constitution. This is known as an unincorporated association.
Unincorporated associations
Unincorporated associations can take the form of either trusts or friendly societies.
Trusts are essentially formal legal agreements between three distinct groups of people:
people donating money (or property);
people benefiting from that donation; and
the trustees who administer the relationship.
Although you can set up a trust quickly and relatively cheaply, it is an undemocratic structure. Controlling power rests with named individuals (the trustees) and these individuals cannot be changed without drawing up a new deed of appointment.
A friendly society with charitable aims is defined as an 'exempt charity'. In practice this means that you can remain unincorporated while benefiting from having charitable status. However, you would not get a charity registration number (which might be a disadvantage in some circumstances). Amalgamating friendly societies - turning them into limited companies - is a simple procedure.
Incorporated associations
There are two main types of incorporated association - industrial and provident societies, and companies limited by guarantee.
An industrial and provident society is a common way of achieving incorporation. As with friendly societies, you should register industrial and provident societies with the Chief Registrar of Friendly Societies. The Registrar has issued guidelines for co-operative societies and other organisations, which benefit the community.
The guidelines state that 'organisations which benefit the community' should:
be non-profit-making;
not distribute their assets among their members;
allow each member to have an equal say in the running of the group;
restrict the level of interest paid on loan and share capital; and
show that they benefit non-members.
In a commercial company the extent of any individual member's liability is usually the amount of their investment. In a company limited by guarantee, members' liability is restricted to a token sum, usually less than 5. This is a democratic form of legal structure, which requires members or users to elect the directors (often referred to as the management committee). Regulations made under the Companies Acts provide a ready-made constitution, which you can easily adapt to meet the needs of different organisations. Only two people are needed to form a company. The company limited by guarantee can be an attractive form of legal structure for many community organisations, especially larger ones that employ staff or have a substantial turnover.
The constitution of a company limited by guarantee is in two parts:
You have to submit these to the Registrar of Companies.
Charitable status
Registering as a charity is quite distinct from choosing the most appropriate legal structure for an organisation. Both incorporated and unincorporated organisations may gain charitable status. The organisation's aims will, for the most part, determine whether it can become a registered charity. The law recognises charities under four headings:
Most voluntary transport projects qualify under the heading of charitable status. There are many advantages to having charitable status, including the fact that it can make fund raising easier. Charitable status can help to reduce rates by at least 50%, gives exemption from most forms of direct taxation and may reduce the VAT payable on certain goods. The Inland Revenue has controlling and supervisory powers for charities in Scotland and may also require returns every year.
Annex B
Criteria for the RCF and RSSF
The criteria for the 2003-2004 round of the RCF and RSSF are:
Community support. Local community support is essential and evidence is required to show that a representative cross-section of local people have been recently consulted on proposals, and actively involved, where possible, in the preparation of the bid.
Partnership working. The applicant must show that a wide range of interests have been consulted and that the key partners from the relevant private, public and voluntary sectors, are involved in and committed to the proposals, e.g. local authorities, LECs, local businesses, police, schools, colleges, NHS boards.
Targeting and Impact. The bid must define the key issues facing the target area/population and potential opportunities; put forward proposals to address these issues and opportunities; identify what will be achieved as a result of the initiative. The issues addressed by the bid and the size of the target area/population group will be a matter for local judgement. However, bids must demonstrate that the project/partnership will achieve a significant measurable impact on the target issues/area/population.
Additionality. The bid should set out the additional benefits that will be accrued by the Scottish Executive supporting the project, over and above what is happening through other programmes and initiatives. Where proposals relate to the activities of other programmes, local initiatives, or Government policies, it must be made clear how they co-ordinate with and complement these activities to maximise the impact.
Match Funding. Applicants are expected to attract financial and other support 2 from national and local bodies that have an interest in supporting the project. Local support is often key to the sustainability of projects. Therefore, successful bids must generate at least an additional 50% of the investment required for their project from other sources over the funding period. Those producing more than 50% match funding will have a stronger case. The commitment given by other funders must be made clear in the bid.
Environmental Impact. The applicant should demonstrate, where appropriate, that the impact on the built and natural environment has been taken into account. Where development is proposed, it should be consistent with the local development plan and have received appropriate planning permission. The assessment should pay close attention to the quality, scale, location and appropriateness of design of any development or redevelopment proposals, and consider the suitable use of resources.
Value for Money and sustainability. The applicant must demonstrate value for money in terms of the initial expenditure, benefit to the community and long term sustainability. The timescales set for completion of the project must be realistic. There must be clear monitoring procedures, which will measure progress towards the objectives and outcomes of the project, and an exit strategy, which details plans for continuation or upkeep of the project, where necessary, at the end of the funding period. This is relevant both to capital build projects, where the applicant must demonstrate that they can afford the upkeep of the completed the building, and to revenue projects, where running costs must be secured for the project to continue in the long term.
1. Excerpt from
Rural Community Transport: A Guide to Good Practice, Scottish Executive, 2001
2. In-kind funding. See page 5 of this note for details.