Funding your organisation during COVID-19

Our article helps you to understand things to consider when it comes to funding your local Healthwatch and staff members during the pandemic.

Funding your service

Your funding from local government

The Government has issued guidance for public bodies on payment of their suppliers to ensure service continuity during and after the COVID-19 outbreak.

This includes the requirement that all contracting councils should urgently review their contract portfolio. All suppliers who they believe are at risk must be informed that they will continue to be paid as normal until at least the end of June. This includes cases where service delivery is disrupted or has been suspended.

The guidance emphasises the importance of putting in measures to support the cash flow of supplier and the importance of making payments on time.

Unfortunately, the guidance does not apply to grants and only covers contracts for good and services.

What if my contract is coming to an end?

The Government have issued guidance to public bodies including councils which enables them to take a more flexible approach during this crisis. For example, they have the option to extend or vary contracts.

How can I access emergency funding?

The Charity Bank has put together a list of emergency funds for charities and social enterprises that are experiencing difficulties. It will be updated as new opportunities are identified.

Grants are being issued to some charities to help sustain services. You can view data statistics on what is being funded by grant givers in response to COVID-19 on 360 Giving.

What if I have non statutory funding from another source to deliver work?

It is important to talk to your funders about the impact COVID-19 may have on your work and negotiate a way forward. Many funders have already publicly recognised that funding related outputs and outcomes and reporting deadlines may not be met and that services may need to be delivered differently. 

The implications of your legal structure

Whether you are a charity or a community interest company, guidance is available to help you think through the implications that are specific to your legal structure.

Guidance for Charities

The Charity Commission has produced guidance to help with running your charity during COVID-19. This answers the most commonly asked questions and helps trustees to be aware of and think about the wider or longer impact of decisions on your charity.

Guidance includes:

• Use of reserves and restricted funds if facing financial problems.

• Holding AGMs and meetings by phone or online.

• Reporting of serious incidents to the Charity Commission.

Guidance for Community Interest Companies

The Office of the Regulator of Community Interest Companies (CICs) has produced guidance for Community Interest Companies affected by COVID-19. This includes information on applying for an extension if you are unable to file your accounts and Annual Report by the required deadline.

Looking after staff members 

With people working from home or off sick, advice have been produced about some of the implications that COVID-19 could have. 

Employees' rights and sick leave entitlements

NCVO has guidance covering employees’ rights and sick leave entitlements.

This refers to guidance from ACAS which covers relief to reclaim statutory sick pay paid to employees for sickness absence due to COVID-19. It also includes other useful advice on vulnerable people and those at high risk, time off work to look after someone, and good practice steps.

Home working expenses and tax implications

HMRC has produced guidance on which expenses are taxable if your employees are working from home due to COVID-19, covering equipment, services or supplies, including broadband, laptops and utilities.