FAQs for Donors
Q:
How do I
give money?
A:
- Set up a Fund – e.g. in memory of a loved one, to make sure your money goes to those in need in Herefordshire, to make philanthropic giving hassle free.
- Make a single donation or set up a regular payment
- Donate as a business
- Transfer your Trust to HCF
- Leave a legacy in your will
- Card, Paypal and bank transfer payments can be made via the website.
To discuss setting up a fund, transferring your Trust to HCF or leaving a legacy, please contact the office on 01432 272550.
Q:
How do you
know the grants are going to the right person or organisation?
A:
HCF has a 22-year track record of providing a secure channel for charitable donations. As part of the UKCF Quality Accreditation Programme, HCF’s processes are regularly, rigorously and independently assessed.
Once a grant application is received, due diligence is carried out by experience HCF staff to ensure the applicant satisfies everything required to be considered for a grant. Each fund has an appointed assessment panel made up of donors or trustees which considers every grant application for that fund. If approved by the panel, the HCF Board of Trustees is formally required to approve all recommended grants
Q:
What kinds of grants are given out?
A:
On inception, each fund has criteria set by the donor which dictate the areas into which grants can be made. HCF has funds to support education and training; the environment; disabled, older and young people; relief of hardship; health and wellbeing; culture; community cohesion, along with other relevant current issues such as flooding. Visit our funds & programmes page for a list of grants recently awarded
Q:
What are the two types of funds – Endowment and Flow-through?
A:
An endowment fund is a lump sum of money invested to provide a quarterly income from the interest. The capital is not usually touched, and the income depends on the rate of interest; on average, a £200,000 endowment provides a dividend of around £8,000 per year. Grants from endowments funds are made every quarter, year after year.
A flow-through fund is a lump sum, from which grants are awarded over a specific time period, until the money has all been distributed. This means that any money donated into a flow-through fund can immediately be distributed.
Q:
How are funds invested?
A:
Some funds are held in deposit accounts, others are invested. HCF works closely with an investment manager, and meets regularly to review investments ensuring maximum growth.
Q:
What is a Community Foundation?
A:
Community Foundations are an international movement and there are 47 in the UK network of UKCF, typically serving individual counties like ours here in Herefordshire. Covering every postcode, Community Foundations connect philanthropic people with local causes that matter to them.
Donations from individuals, families and businesses, are placed into the care of the Community Foundation, which builds and generates funds which are then distributed via grant-making programmes to support local people and organisations in the community. It also operates grant programmes from other bodies, such as the Government, to distribute support to those in most need.
As part of the UKCF, Herefordshire Community Foundation is strictly audited to the highest standards of quality assurance. UKCF works with partners to source national funding which is then distributed across the country via the CF network e.g. National Emergencies Trust, Arts Council England, Department for Culture, Media and Sport.
Q:
How is the Community Foundation funded?
A:
To meet administration costs, HCF makes a charge to each fund for managing it. Endowment funds are charged annually 1.5% of the value in each fund. Flow-through funds, are charged a percentage of each grant paid out, usually 10%. Charges for both types of fund are taken quarterly.
Q:
How many grants are given out each year?
A:
In 2022-23 HCF gave out 605 grants to individuals and organisations, totalling £812,733.
In 2023-24 HCF gave out 592 grants to individuals and organisations, totalling £748,110.
Q:
Who is eligible to apply for a grant?
A:
Organisations and individuals can apply to HCF for a grant. Organisations do not have to be a registered charity but must prove its charitable or social benefit aims. Priority is given to small, local organisations whose work benefits people in Herefordshire. Individuals seeking hardship grants can apply via a referral agency or supporting professional e.g. social worker, Citizens Advice, foodbank, social prescriber, head teacher. We can also support students with bursaries.
Q:
How do I apply for a grant?
A:
Applications from organisations and community groups can be made via the website – see our Apply for a grant page. For individuals applying for support, applications need to be made by a referral organisation or a supporting professional. Applications for student bursaries can be made directly to HCF. For more information on how to make an application, see our website www.herefordshirecf.org or contact our Grants Officer on 01432 272550.
Q:
What size of grants are given out?
A:
The size of grants awarded depends on the balance available in each fund. Grants to organisations tend to fall within the range of £1,000 – £5,000. However, we have given out grants for as little as £70 and as large as £20,000. Individual grants for fuel poverty and white goods are usually in the region of £250-£500.
Q:
Why does HCF appeal for funds when it has millions on the balance sheet?
A:
Almost all our funds are held in Endowments which gives us certainty about long-term sustainable grant-making for Herefordshire. We can’t draw down on the endowment capital but we can use quarterly dividend income for grants. Demand for support has always outstripped the grant funds available. Most of the endowment funds have restricted purposes. We are always looking for opportunities to build new funds that extend our reach across the county and the types of benefits we can support.
Q:
What is Philanthropy?
A:
The word philanthropy is derived from Ancient Greek “philanthrōpía” which is translated as the “love of humanity”. It is the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes.