There used to be a bigger separation between funding for repairs and for new works and community projects. Increasingly, funders for all types of projects will be looking for either community outreach or education, or increased access to form part of any project and will want to see evidence of what your place of worship is doing in one or all of these areas.
Value Added Tax (VAT) can be an important consideration for your project. The repair and maintenance of places of worship represents one of the largest areas of expenditure for churches. The standard rate of 20% currently applies to maintenance,repairs, alterations and new build on all buildings, . NB: the installation of certain aids for disabled people, such as ramps or bathrooms can still be zero-rated.
Since 2001, the Listed Places of Worship Scheme has offered grants towards the VAT incurred in making repairs to listed buildings mainly used for public worship. When it started, it made payments of 100% of eligible claims. However, since April 2011, there is a fixed annual budget and to ensure all claimants are treated fairly in the event of any pressures on this budget, the scheme now operates with quarterly fixed budgets with payments made once per quarter. The payable rate will depend on the value of eligible claims received in that quarter, with each claim attracting a fair pro-rata payment. Currently, the budget is sufficient to enable 100% payments. To find about the Scheme go to: http://www.lpwscheme.org.uk/
*As part of the 21st March 2012 Budget, the Government announced the withdrawal of zero rate VAT on approved alterations to listed buildings from 1 October 2012 which would have included listed places of worship. Following lobbying by the Church of England and the Historic Religious Buildings Alliance, the Government agreed to widen the scope of the Listed Places of Worship Grant Scheme to allow for applications for grants to cover alterations as well as repairs to listed places of worship. The Scheme’s budget was increased to take account of the increase in applications.
An announcement in June 2013 confirmed that the available funding for the scheme would be maintained at £42m per annum in 2015-2016.
The Government recently announced changes to the scope and operation of the Listed Places of Worship grant scheme, these changes came into effect on 1 October 2013. From this date, works to pipe organs, turret clocks, bells and bell ropes are eligible for claims under the scheme. Professional services directly related to eligible building work such as architect fees are also eligible
The Memorials Grant (MG) Scheme will refund VAT on repairs to memorials which can be classed as structures. This includes traditional memorials such as stone crosses, monoliths and statues, as well as plaques fixed to buildings. Since April 2012 there has been a fixed annual budget. To ensure all claimants are treated, the scheme now operates quarterly fixed budgets with payments made once per quarter. the payable rate will depend on the value of the eligible claims received in that quarter, with each claim attracting a fair pro-rata payment. The maximum grant payable in response to any application will be 20% of project costs. This is outlined fully on the MG scheme website http://www.memorialgrant.org.uk/
You can also find guidance on the Churchcare website at http://www.churchcare.co.uk/images/Sources%20of%20funding.pdf.
And on the United Reformed Church website at http://www.urc.org.uk/plato-property-handbook/64-general/plato-property-handbook/631-vat-s481.html
And on the Baptist Union of Great Britain website at http://www.baptist.org.uk/Groups/220867/Listed_Buildings.aspx
5.2 Guidance on how to approach fund-raising
Always be clear about what you are asking money for. You can set up separate funds so that people can donate for a specific cause eg: the roof or the organ. Or you may want to ensure you have flexibility on what funds can be spent on eg: set up a Fabric Fund or Community Project.
WHERE TO GO FOR MORE HELP
The Parishes Resources website offers a range of 23 “How to” funding guides to help you target funding for projects – either for capital works, community outreach or for mission. While it is generally a good principle for the day to day running costs and routine maintenance of the church to be met by regular giving, there will inevitably be times in the lives of many churches when a major appeal is needed. This has been developed by a Good Practice group established by the National Stewardship Committee, Church of England, but is useful for all places of worship.
The Churchbuild website looks at the range of different types of fund-raising.
The Ecclesiastical Insurance website has some useful guidance including planning and its importance, using the internet, applying for grants, talking to the press and fundraising ideas.
Fund Raising for Churches by Jane Grieve
Aimed at all churches, from those in the smallest villages to the large secular organisations, this text takes the methods of modern fundraisers and adapts them specifically for Christian churches
N.B. See under OTHER RESOURCES for more information on how to buy this book
UK Church Fundraising Handbook: A Practical Manual and Directory of Sources by Maggie Durran. This is a practical, comprehensive and information-packed manual for all churches facing the challenges of maintaining buildings, rising costs and dwindling congregations while wanting to be generous to others in need. It offers a complete step-by-step guide to: giving your church a ‘financial makeover’, growing its resources, maximising the regular giving of the congregation through Gift Aid, putting the ‘fun’ into fundraising, special appeals and legacy campaigns, applying for heritage, Lottery, government or EU funding, building fruitful relationships with local businesses, trusts and foundations, and fundraising for repairs and for new mission projects. The final chapter is all about celebrating hard-earned success! It also includes real-life examples and case studies, plus templates for budget planning, preparing a business plan, producing brochures and all other practical necessities.
N.B. See under OTHER RESOURCES for more information on how to buy this book
Grow Your Church’s Income: A guide to securing long-term financial health by Maggie Durran
A simple, practical guide to making your church’s resources go as far as they possibly can in the short, medium and long term. A basic guide to managing money and budgets, controlling your expenditure, ways of increasing income, from stewardship to social events, how to address falling numbers and falling income, identifying ways to raise income from outside sources, getting the best prices for utilities and other services, group purchasing schemes etc. It is illustrated with real examples from churches of all sizes and in all states of financial health.
N.B. See under OTHER RESOURCES for more information on how to buy this book
5.3 Applying for Grants
Increasingly public money in the form of grants is becoming more difficult to obtain. In order to qualify for funding for a repairs project, or improving or installing new facilities from scratch, you will need to be able to show how you are going to benefit the wider community. And you need to show that you are going to be fulfilling a real need: ie that you have done your research:
- You have undertaken some form of community audit
- Can show that the need came out of the development of a local plan
- Can supply letters of support especially from partners
Your application will have to make clear:
- that you have a clear mission statement. Granters will want to understand what your project hopes to achieve and who will benefit. What change are you going to bring about?
- how you are going to achieve your project
- that you have a fully worked out business plan
- how you will measure achievement/success
- what will be in place to ensure future sustainability
If your project already is up and running and you would like to demonstrate your church’s contribution to the community, for example for a grant application or negotiations with other bodies, you could use the Churches Community Value Toolkit produced by the Church Urban Fund. The toolkit can also be used over a period of time to identify changes and developments. However this particular tool has limits on its usefulness for many rural churches and communities.
The Parishes Resources website has twenty-three ‘How to’ Funding Guides. They are designed to help you target funding for projects, including building works and community projects. They provide advice on preparing and organising a funding strategy and appeal, including guidance on funding sources, applications, budgeting, business plans, Gift Aid and fundraising.
The Funding Guides have been developed by a Good Practice Group established by the National Stewardship Committee of the Church of England and are available from the http://www.parishresources.co.uk/.
The Methodist Church has a section on Projects and Funding including guidance on Making a Good Application – Hints & Tips and also How to put Together a Good Business Plan. This can be found here www.methodist.org.uk/ministers-and-office-holders/property/projects-and-funding/projects-and-funding-information-leaflets
The Heritage Lottery Fund’s new grant programme for places of worship is due to be launched in late 2012. It will continue to prioritise urgent repairs, but will also include some funding for new capital works as well as placing increased emphasis on outreach and education. There will be case studies up on their website which will illustrate what they are looking for and show how successful applicants created and developed their projects. This specific programme is not yet on their website www.hlf.org.uk.
5.4 Funding Directories
Heritage Alliance Funding Directory http://www.theheritagealliance.org.uk/fundingdirectory/main/fundinghome.php
The Architectural Heritage Fund has a funding directory especially for historic buildings www.ffhb.org.uk
5.5 Guidance on Funding Sources
The National Churches Trust (NCT) offers an independent source of advice and grants on both building repairs and for community engagement. http://nationalchurchestrust.org/supporting-you/overview.php
You can also call the NCT’s National Support Officer for help and support on 020 7776 1042.
The County Churches Trusts which are voluntary organizations, raising money for the restoration and maintenance of historic churches and chapels, will provide grants to all places of worship within their County. For contact details go to http://nationalchurchestrust.org/supporting-you/in-your-area/in-your-area.php
County Trust websites also provide information on funding sources including local ones.
Most denominations have some funds of their own to offer their churches for building or mission initiatives. They also have information on other funding sources.
Most Church of England diocesan websites will have a section on fund-raising. The Churchcarewebsite has a very detailed information and guidance which can be found here http://www.churchcare.co.uk/images/Sources%20of%20funding.pdf and http://www.churchcare.co.uk/churches/funding-and-grants/about-fundraising.
The Methodist Church has guidance on external funding sources here www.methodist.org.uk/ministers-and-office-holders/property/projects-and-funding/projects-and-funding-information-leaflets
and information on Connexional property grants here www.methodist.org.uk/ministers-and-office-holders/connexional-grants
The Roman Catholic Church has some information here
United Reformed Church guidance on other sources of funding can be found at http://www.urc.org.uk/plato-property-handbook/64-general/plato-property-handbook/619-a-basic-guide-to-external-fundraising-s841.html
For the Baptist Union of Great Britain guidance on funding can be found at http://www.baptist.org.uk/Groups/220868/Money_for_Building.aspx.
For Quakers go to
English Heritage’s Divine Inspiration project (now ended) produced the Sources of funding for Church Repair Projects tool which can be downloaded here.
Or you could try Crowd Funding. Parish Resources has produced a useful guide on Crowing Funding that you can access here: http://www.arthurrankcentre.org.uk/library-of-good-practice/item/9367-crowd-funding-for-churches
5.6 Funding for the Care of Fixtures and Fittings
There are a number of organisations which can help you fund the conservation of your church’s furnishings and fittings as well as churchyard furnishings, memorials and tombs.
For the Church of England,the Council for the Care of Churches offers grants to PCCs and Friends groups for the repair and conservation of objects of artistic/historical significance in Anglican churches in England and in need of urgent repair http://www.churchcare.co.uk/churches/funding-and-grants/our-grants.
A list of other funders can be found on Churchcare at http://www.churchcare.co.uk/images/Sources%20of%20funding.pdf . You will have to scroll through the document to find the appropriate section.
The Heritage Lottery Fund’s Your Heritage programme offers grants between £3,000 and £100,000 inclusive for projects that relate to the local, regional or national heritage of the UK. You can apply to conserve an object or piece of heritage – this can include bells, clocks, organs, paintings on canvas & wood, wall paintings, monuments, timberwork, ornamental plasterwork, metalwork, books & manuscripts, textiles as well as historic structures and other conservation projects in churchyards. Your application must also show how you are using your project to help people to learn about their own and their community’s heritage, and helping a wider range of people to take an active part in and make decisions about heritage. http://www.hlf.org.uk/HowToApply/programmes/Pages/yourheritage.aspx
5.7 Setting up a Friends Group
This is a good way of widening your support base. A lot of people who don’t come to your church to worship may well care about the building and want to help and a Friends Group can be a good way to get these people involved. Such groups usually start with the aim of raising money for repairs, but they can also become involved in other aspects such as community outreach work.
Aim to ensure your committee includes both people from the church and people from all parts of the community. It is also important to ensure that either the incumbent or a churchwarden is part of the Group to facilitate good communication between the church and the Friends Group. Make sure you don’t cut across the Church’s existing fund-raising activities by reaching agreement on what the money raised should be spent on. The Group can make a grant of funds to the church body in order that the elected representatives of the congregation have responsibility for spending this without restriction or you can decide to fund-raise for specific things.
You can either set yourselves up as a separate charity through the Charity Commission or you can come under the umbrella of your PCC/church body and ask them to ring-fence an account for the Friends and benefit from their charitable status.
It is always useful to discuss the proposed trust deed with the Charity Commission, as well as your local adviser. Note that major grant givers will usually only make grants available to the PCC/or church council, as the body with legal responsibility for the building.
WHERE TO FIND MORE HELP
The Diocese of London now have made available online “Building Friends: a toolkit for new friends’ groups” at: http://www.london.anglican.org/kb/building-friends-a-toolkit-for-new-friends-groups/ (This is a very large single web-page; you will need to scroll through it to access all the information & suggestions.)
“Friends’ Scheme” for a Parish Church by Susan Rennison
N.B. For more information on how to buy this book see under Other Resources
The National Churches Trust has also brought together some useful information on this at: http://nationalchurchestrust.org/supporting-you/support-and-advice/friends-of-the-church/friends-groups.php
Also see Tool 7 in the Rural Toolkit on the Parish Resources website for brief information on Friends Schemes. http://www.parishresources.org.uk/rural.htm
Perpetual Fabric Fund
Church of England churches could also consider setting up a Perpetual Fabric Fund (PFF). This is a means of providing a capital fund to which anyone can contribute in the knowledge that their money can only be spent on the fabric of the church concerned. It is an arrangement which may attract substantial gifts or legacies from non-churchgoers – people who are reluctant to contribute to general PCC funds, but who are willing to support the bricks and mortar of a particular church. Further details should be available from the diocesan office.
5.8 Funding for Community Projects
WHERE TO FIND MORE HELP
The Resourcing Christian Community Action website. Following a Big Society debate at the November 2010 General Synod, this study was commissioned to research and bring together current best practice in Christian care in local communities with the resources and knowledge base needed to multiply those good works across the country. You can read the study in full on the website and also access a mass of information on how to get a project started and how to run a project. There is also information and links to local infrastructure organisations where you can get advice and support on setting up a project and where to find partners and funding. There are also case studies of existing projects from across the country: www.how2help.net.
The Funding Central website provides updated information on sources of funding for charities and projects. http://www.fundingcentral.org.uk/Default.aspx
Specific further information on sources of advice and guidance can be found on the Churchcare website at http://www.churchcare.co.uk/images/Funding%20and%20Resources%20for%20Community%20Projects.pdf.
The Church Urban Fund, which now supports rural projects, offers the Mustard Seed Programme which aims to provide grants of up to £5,000 to enable churches and faith-based organisations to engage in social action, by supporting them to initiate or develop community work.
NAVCA (National Association for Voluntary and Community Action) is the national voice of local support and development organisations They champion and strengthen voluntary and community action by supporting our members in their work with over 160,000 local charities and community groups. For more information go to www.navca.org.uk
To find the local bodies which can provide support at local level to the voluntary and community sector go to http://www.navca.org.uk/directory . They can provide advice on setting up new projects as well as offer information on local grants and offer support for the application process.
Local Funding Advice Bodies. Most areas have some form of organisation that supports voluntary and community organisations to get the resources they need. They can provide advice, information on local funding sources and training to help local organisations develop their fundraising knowledge, skills and confidence. E.g. the South Yorkshire Funding Advice Bureau (SYFAB) covers South Yorkshire www.syfab.org.uk.
5.9 Gift Aid
On 24 February 2012, HMRC Charities published updated guidance on Gift Aid declarations and provided new model declarations. The new model declaration includes the words “I confirm I have paid or will pay an amount of Income Tax and/or Capital Gains Tax for the current tax year (6 April to 5 April) that is at least equal to the amount of tax that all the charities and Community Amateur Sports Clubs (CASCs) that I donate to will reclaim on my gifts for the current tax year”.
This is a significant change from the existing wording.
The 21st March 2012 Budget reaffirmed the introduction of the small donations scheme from April 2013 to enable charities to claim a top-up payment on up to £5,000 of small donations without having to collect Gift Aid declarations. Charities will be able to claim on donations of £20 or less instead of the figure of £10 announced in the 2011 Budget – presumably to get round the problem of £20 notes in the collection-plate. This requires separate legislation.
The Parish Resources website has a very good section on Gift Aid which can be accessed here http://www.parishresources.org.uk/giftaid.htm.
You may want to consider taking out a loan to enable work to proceed in one continuous operation, whilst fundraising is going on. You must weigh the implications carefully. It will be dependent on the ability of your church to cope with the burden of repayment. The important principle is to ensure that the parish has the financial ability to meet its commitments.
There are several banks that specialise in providing financial support including loans to charities especially for community projects such as the Charity Bank, the Co-Operative Bank and the Triodos Bank.
For the Church of England, many Diocesan Boards of Finance offer loans in respect of repairs to church fabric, reordering or for new buildings. You should approach your Diocesan Office to see whether they offer such a facility.
The Baptist Union of Great Britain offers loans to help its local churches. Information can be found at: http://www.baptist.org.uk/Groups/220868/Money_for_Building.aspx.
For the United Reformed Church information about Loans from the Church Building Fund can be found at www.urc.org.uk/images/S851.pdf
5.11 Ride and Stride
Ride and Stride is organised by the County Churches Trusts, supported by the National Churches Trust. Also known as the Sponsored Bike Ride, the annual event takes place across most of the country and has been an annual event since it began in Suffolk in 1981.
A fun (and healthy!) way to raise money, it takes place on the second Saturday of September. People from across the country take part riding or walking between churches to raise money. To find out how your church can be involved have a look at the website at http://www.rideandstrideuk.org/about/