Applying for National Lottery funding - NACOSA

1 BRIEFING NOTE. AUGUST 2015. Applying for National Lottery funding New regulations on the allocation of National Lottery funding were issued in April 2015 to improve the allocation process, reduce the reporting requirements for smaller grants and minimise the risk of mismanagement and fraud. In July, the first call for applications under the new regulations was issued in the Charities and Arts, Culture & National Heritage sectors. What has changed and how can organisations apply for funding under the new regulations? The regulations make some key changes in the PRIORITY AREAS. application and adjudication process that The Lottery regulations state that 47% of funds organisations should be aware of when Applying must be allocated to the Charities sector, an for Lottery funding in this round.

2 Increased proportion. This means more funding is SUPPORT AND AWARENESS available for non-profit, social welfare organisations, particularly those serving: According to the regulations, one of the roles of the newly-named National Lottery Commission is to Rural, under-privileged and poor educate and raise awareness of the grant-making communities.. process and provide capacity building training, particularly financial management, to applicant The latest call is looking for applications in the organisations. The regulations discourage following priority areas: applications for conduit funding by intermediaries 1.

3 Expansion of home-based care services (where a big established organisation applies on through training and infrastructure behalf of small, community-based organisations). development for the aged, the sick, orphaned The only time this is allowed is if the organisation and vulnerable children and the disabled. has been in existence for less than 6 months. 2. Provision of services in early childhood development, adult literacy, vocational To support and educate organisations through the training and mentoring for skills development application process, the Commission has a new that includes disabled people. website, a dedicated helpline and offices in every province.

4 Make use of these resources, they are 3. Social welfare developmental programmes. there to support fair access to Lottery funding , The call and various application forms make it clear particularly for community based organisations. that job creation is a key focus for the Lottery . NACOSA BRIEFING NOTE | Lottery funding | AUGUST 2015 Page 1 of 3. GRANT TYPES HOW TO APPLY. The regulations put in place different grant sizes As with most funding applications, organisations and reduce the reporting requirements for smaller must submit an application form, a proposal (called grants. Again, this is an effort to improve access for a Business Plan' in this case), a budget and the smaller, less capacitated organisations by reducing required supporting documents.

5 There are the reporting burden. different requirements, deadlines and forms for small grant and medium grant applications. All the 1. SMALL GRANTS of under R500,000 for small, forms and templates are available on the website emerging organisations or organisations that or at your provincial Lotteries Commission office. have not received Lottery funds before. These organisations only need to provide a report and We are anticipating a positive response supporting invoices and cannot apply for multi- and we urge organisations to submit their year funding or funding for infrastructure, applications as early as possible.

6 Except for renovations. - Charlotte Mampane, Lotteries Commissioner 2. MEDIUM GRANTS of between R500,000 and R5 million for larger, more established For a SMALL GRANT you must submit: organisations who must submit an 1. Completed FORM 2010/2. independently reviewed financial statement. 2. A Project Business Plan for small grants, using These organisations can apply for multi-year the template provided. This is your proposal. (up to 3 years) and infrastructure funding . 3. A Budget and motivation, using the template 3. LARGE GRANTS of over R5 million for provided. organisations or projects identified by the 4.

7 Proof of your registration as an NPO and as a National Lottery Commission as proactive place of care/home etc (if applicable). funding . An audited financial statement of the 5. If you have not received funding from the grant itself must be provided. Lottery before, your founding document signed and dated (eg: constitution, trust deed, The large grant category is not available for the memorandum of association/incorporation). current call for applications. 6. Financial records for 3 months to include: WHO CAN APPLY? Statement of Assets and Liabilities To be considered, even for a small grant, you must Income Statement be a registered non profit charitable organisation Original bank statements (not copies).

8 Either a Non Profit Company (formerly a Section Make sure that the name of your organisation is 21 Company), a Non Profit Organisation (NPO) or a the same on all of these documents and use the Public Benefit Trust. Family Trusts are not eligible. checklist provided to ensure you are submitting the There are some other criteria: correct documents. Children's homes, ECD centres, homes for the Send your application to the Central Applications aged or places of care must be registered. Office in Pretoria by 12 November 2015. If you have received funding from the Lottery before, you must have submitted all your For a MEDIUM GRANT you must submit: progress and final reports according to your 1.

9 Completed FORM 2010/1. grant agreement. 2. A Project Business Plan for medium grants, The regulations state that organisations are not using the template provided. eligible if they have received a Lottery grant 3. A Budget and motivation, using the template less than 12 months previously (from the date provided. they received the funding ). However, this is not 4. Proof of your registration as an NPO and as a mentioned in the call for applications so may place of care/home etc (if applicable). not apply to this round. 5. Signed and dated founding document if your organisation has not received Lottery funding before.

10 NACOSA BRIEFING NOTE | Lottery funding | AUGUST 2015 Page 2 of 3. 6. Most recent signed and dated financial KwaZulu-Natal statements: Office 22, Smartxchange Building For 1 year if you have received Lottery 05 Walnut Road funding before. Durban For 2 consecutive years (signed by an 4001. independent accounting officer or auditor), Tel: 031 817-4410. if you have never received funding from the Lottery . Eastern Cape 7. Signed Auditor or Accounting Officer's Report Phase 4A, Waverley Office Park Phillip Frame Road Applications for medium grants must be submitted Chislehurst to the Central Applications Office in Pretoria by East London, 5200.