Page 33 - NAS Members Guide to Funding

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• Capital Expenditure is for items the funding will
buy that hold their value as assets and could be
sold in the future. This includes buying land and/or
buildings, carrying out renovation of existing buildings,
7. EXPENDITURE
LEARNING OUTCOMES
At the end of this section of the guide, your association will be able to:
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Understand the three categories of expenditure used in grant funding applications
Calculate match funding
Calculate volunteer hours for match funding specific to a funder’s rules
INTRODUCTION
So that applicants can easily understand which financial information to submit, funders try to avoid financial wording that only a chartered accountant would understand. That said, funders do have to adhere to certain financial accounting requirements and so they have to ask applicants to provide certain financial information as part of their application. For your association, this means you need to learn a bit about “expenditure” in the way it is described by funders.
The type(s) of expenditure that individual funders will fund is described in their criteria (see Part 5). If you do not know your expenditure type, your application could be delayed or rejected.
There are three general types of expenditure which funders want to hear about. The first one on the list below – Project Expenditure - is the type that the majority of funding applications from allotment associations fall into.
• Project Expenditure covers all the costs directly associated with your plan such as buying the goods, materials and services you have listed in your budget (see part 1).
buying tools, equipment and furniture. (If you already have these, they are not part of your application).
• Revenue Expenditure is for ongoing spending that the funding award will pay for. This includes salaries, bills for services such as telephone, gas, electricity, rent, stationery and other consumables. It is unlikely that allotment associations will be applying for these type of items, however, if you are then you should seek advice from the funder before applying.
MATCH FUNDING
Some funders will not pay the total cost of bringing your idea to life. Instead, they will expect you to have one or two (and sometime more) sources of money to fund your idea. This is sometimes called ‘multiple sources of funding’. Read the funder’s criteria and application form to see if this is a requirement.
The other sources of income that you use on your funding application are called “match funding” (this is sometimes called “matched funding”). Each funder has its own rules about what it will accept as match funding and how it should be calculated. Generally, the following are often regarded as match funding:
• Other grant awards (e.g. a grant you have already obtained to fund your idea or one that you are applying for to fund your idea).
• Money you have made from other forms of income generation and that you are allocating to this specific idea. For example, the ideas described in part 2 of this guide.
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