Delegated Fund guidance on due diligence*

*These refer to organisations we have not funded in the last three years

Walton Charity will carry out due diligence checks on grant applicants to determine the risk attached to funding the organisation. Organisations that pose a larger risk are not necessarily less likely to receive funding, but the risk level will be taken into consideration when deciding whether to award funding and what additional monitoring may be needed. Applicants that do not pass due diligence will not be put forward for funding.

Where anything is unclear, Walton Charity may call applicants to obtain more information with regards to submitted documents.

Supporting documents

  • Most recent annual accounts (from Charity Commission).

  • Current financial year’s budget.

  • Governing documents (where relevant e.g., smaller or unknown charities).

  • Safeguarding policy (if you will be working with children or vulnerable adults).

  • Equality and Diversity policy.

What Walton Charity will be assessing in these supporting documents

Walton Charity will make the following best practice checks on the organisation by reviewing the supporting documents. Where the organisation does not comply, we will ask them to provide an explanation as to why this is, or when they will be able to submit the required documentation.

Annual accounts

  • Reserves are reasonable given the size of the organisation and these are in line with reserves policy they have. We would usually expect between 3-6 months running costs. Organisations with significant reserves may be asked to explain why these reserves cannot be used to cover the cost of the activity. They should be give the opportunity to provide further explanation on the level of reserves, where we have concerns.

  • That information on the organisation’s income and expenditure is clear and any anomalies explained. Walton Charity will note whether there are significant differences in expenditure from one year to another and to whether the organisation could pay all creditors from bank balances.

  • Restricted funds are not in deficit (or a satisfactory explanation is given for any deficit).

  • Auditor’s organisational and financial review does not highlight any significant concerns.

  • Funding sources are diverse, and that the organisation is not dependent on a particular funding stream that may be at risk.

Bank statements

  • In the organisation’s name.

  • A bank account has at least two unrelated signatories. If signatories are related, a bank mandate should be provided preventing them from signing together.

Governing documents (where applicable)

  • Legal framework is applicable to aims and activities.

  • Proposed activities fall within the organisation’s charitable objectives.

Safeguarding policy

This should contain:

  • Definitions of abuse and signs of abuse and a description of how abuse is different for abuse (if working with both children and vulnerable adults).

  • Procedure for reporting safeguarding concerns.

  • Procedure for handling cases of disclosure revealed by DBS checks.

  • The name of the person responsible for child protection.

  • The name of the local safeguarding board.

  • All staff, volunteers, and trustees who are working directly with vulnerable adults and/or children should have the appropriate DBS checks.

  • All staff, volunteers, and trustees who work indirectly with vulnerable adults and/or children receive safeguarding training.

  • Risk assessments are carried out to ensure any vulnerable adults and/or children in the care are safe.

  • Frequency at which the policy is reviewed (suggest annually).

Equality and Diversity policy

Ideally the organisation has an Equality and Diversity policy which includes:

  • References to the Equality Act 2010.

  • The following characteristics: age, being married or in a civil partnership, being pregnant or having a child, disability, race, religion/belief or lack of, gender, sexual orientation, being or becoming a transsexual person.

  • Equal access to services and employment.

  • Preventing harassment and ensuring everyone is treated equally.

  • Complaints are dealt with fairly.

Additional checks

Walton Charity will make the following best practice checks on the organisation using publicly available sources.

Charity Commission and Companies House records

  • Minimum of three unrelated trustees (this may depend on the size of the charity).

  • No returns are overdue.

  • There is no proposal to remove the organisation from either register.

  • Registered address is the same as on the application form.

  • Any serious incidents (safeguarding or fraud) have been reported.

  • Charity Commission and Companies House checks will be carried out on partnership organisations where relevant.