Heritage Endowments are intended to support heritage organisations to build an endowment, which will provide an annual income over the long-term and create a lasting source of financial support.
Fundraising for an endowment will enable organisations to increase fundraising expertise among their staff, volunteers and Trustees and develop relationships with donors. The programme aims to help heritage organisations diversify their income and become more resilient, making a lasting difference for heritage and people.
The scheme is intended to:
o Attract additional private money into the heritage sector through the offer of match funding; and
o Achieve a significant growth in endowments in the heritage sector, invested to provide sustainable funding for the long term.
Heritage Endowments grants of £250,000, £500,000 or £1 millionare available. Grants must be matched £ for £ by private donations raised by the applicant. In addition to the match funding element, organisations can also apply for up to 10% of the grant to help resource campaigns.
For example, an organisation applying for £250,000 in match funding could apply for an additional amount of up to £25,000 to support the campaign.
Eligible costs directly related to running the campaign element for an endowment include:
o New or existing staff posts;
o Marketing the campaign activity aimed at developing new and existing relationships with donors (such as special events);
o Research on prospects, including wealth-screening; and
o Improving fundraising infrastructure for the campaign, such as supporter databases carrying out evaluation and sharing learning.
Eligible match-funding donors can include:
o Private individuals;
o Businesses of all types including limited companies (whether public or private or by shares or by guarantee), sole traders, partnerships, or community interest companies;
o Other ‘not for profit’ enterprises, faith groups, trusts, and foundations where the gift to the match challenge is additional to, and separate from, any previous support given to the recipient organisation and is specifically identified for the endowment; and
o Funds administered by local authorities or National Health Service bodies as charity trustee (but not from their general budget).
PLEASE NOTE: eligible match-funding donors do not need to be UK registered companies nor do individuals need any UK domicile or residency qualifications.
Grants will only be provided to match-fund money raised from private sources towards the building of an endowment, and some of the costs associated with a fundraising campaign. Public sector funding, including that distributed by intermediaries, cannot be used as match funding.
Projects should make a lasting difference for heritage, people and communities in the UK. Eligible projects include, for example:
o Archaeological sites;
o Collections of objects, books or documents in museums, libraries or archives;
o Historic buildings;
o Natural and designed landscapes and gardens;
o Places and objects linked to industrial, maritime and transport history;
o Natural heritage including habitats, species and geology.
Grant recipients may treat the grant in either of the following two ways:
o As an endowment where the capital is used to provide income and will not itself be spent. Such funds cannot be used for any purpose other than that for which they are given. They will usually be applied, for as long as the capital is held, for that same purpose; or
o As a time-limited expendable endowment, where the fund, both capital and income, is expended over a long period of time.
HLF will only accept proposals for endowments to be spent over a period of 20 years or longer from the completion of the fundraising.
o Be an organisation that HLF are currently funding or have funded in the past. Current HLF grantees can apply for a Heritage Endowments grant to run alongside their current project;
o Have a constitution or other governing document that enables the operation of an endowment fund that meets the requirements of the scheme;
o Demonstrate that their organisation has the necessary processes in place to provide strong financial management. This should include, where the organisation already holds investments, evidence of their management, whether direct or through investment managers or managed funds, backed by recent audited accounts.
Applicants must also demonstrate the following:
o Experience and success in fundraising from private donors, whether trusts, foundations, individuals or corporate givers;
o An ability to engage with donors and encourage new or additional giving from them;
o Sensible plans for legacy giving as an important element of a sustainable endowment fundraising strategy; and the ability to run a match funding challenge (direct experience is not required, but applicants should be able to demonstrate similar experience and the capacity of the team who will manage the campaign and endowment).
Applicants will normally be expected to be the owner of the heritage asset that will benefit from the Heritage Endowments grant. If the endowment relates to land or buildings and the applicant is not the owner, a lease with at least 20 years left to run after the match funding project’s completion date will be required.
In some circumstances a group of heritage organisations that individually would not have the capacity to fundraise for endowments might form a partnership to provide the capacity necessary to successfully deliver a Heritage Endowments campaign.
Applicants must initially register online at the HLF website and submit a project enquiry form by Thursday 13 October 2016.
HLF will then release an application form that must be completed and submitted along with supporting documents by Thursday 24 November 2016.
Applications will be decided by HLF's Board of Trustees and awards will be made in March 2017.
Successful applicants will have four years to complete their fundraising campaign.
For further information, visit the Heritage Lottery Fund Heritage Endowments Grants webpage.
Contact details for the Heritage Lottery are:
Heritage Lottery Fund
7 Holbein Place
London SW1W 8NR
Tel: 020 7591 6042/6044