Charity Grants, Loans

Yes, if the grant furthers your charity's purposes, that is the test, not the recipient's status. Granting to another charity with compatible purposes is straightforward; granting to a non-charity is lawful but demands more control, because your funds must be applied charitably even in non-charitable hands. That is why this sub-folder's non-charity grant agreement carries tighter conditions and monitoring than the charity to charity versions. Record the purposes analysis in the trustee minutes.

Purpose, conditions and recovery. State exactly what the grant funds, when instalments flow and against what evidence, what reporting the recipient owes, what happens to unspent funds and your right to claw back money misapplied. For non-charity recipients add restrictions keeping the funds on charitable application. Long and short versions exist here because a 500 pound grant to a known partner does not need the machinery of a 50,000 pound programme grant; match the document to the risk.

If grants will recur, yes. A policy sets who can apply, what you fund, how decisions are made and by whom, conflict handling and monitoring expectations, which protects trustees from accusations of favouritism and gives applicants a fair process. It also answers the Commission's interest in how charitable funds are applied. Adopt it by trustee resolution and publish what applicants need. The Charity Grant Making Policy template here is the framework.

Because who is actually borrowing differs. A charitable company or CIO borrows as a legal entity and signs in its own name; an unincorporated association cannot, so its trustees or officers borrow personally on the charity's behalf, carrying the liability themselves. The loan and promissory notes here come in versions for each structure, with and without interest, so the signature block and liability match reality. Check your governing document's borrowing power and minute the trustee decision first.