chapter  5
2 Pages

Flexible financing

Many non-profit organizations, like charities and some others in the public sector, are financed by grants. These are funds which need not be paid back, generally providing certain conditions are fulfilled. However, to get the grants, organizations need to apply and convince the grant provider that the money is to be used appropriately. For instance, a branch of Age Concern might receive a grant of 50 per cent of the cost of a day centre if:

the local branch raised the other 50 per cent itself; the project would meet the needs of, say, 25 people a day; the day-to-day running of the project would be self-financing; certain management and operational criteria are met.