Small Charities Challenge Fund (SCCF) MannionDaniels | Edinburgh| June 2018

UK Aid Direct Consortium Partners:

What is UK Aid Direct? Funded by the UK’s Department for International Development (DFID), UK Aid Direct was established in 2014 as a successor to the Global Poverty Action Fund (GPAF), which was created in 2010. UK Aid Direct is a challenge fund designed to support the UK’s commitments to achieving the Global Goals. Grant Type Organisation Type UK Aid Direct Community Partnership For organisations with income less than £1 million UK Aid Direct Impact For organisations with income less than £10 million Jo Cox Memorial Grants Strengthening For organisations with income less than £500,000 Jo Cox Memorial Grants Network Small Charities Challenge Fund For organisations with income less than £250,000

What is the Small Charities Challenge Fund (SCCF)? Set up to target small, British grassroots organisations not currently eligible under the regular funding rounds of UK Aid Direct Organisations must have an average annual income of less than £250k Multi-sectoral in nature and reflects DFID priorities Grants of up to £50k will be available for projects lasting up to 2 years

What is the Small Charities Challenge Fund (SCCF)? Open funding round and applications will be reviewed every 6 months The third funding round is now open - the deadline is: Thursday 27 September, 2018 at 17:00 GMT. Limited payment in advance now available

Focus of the UK Aid Direct current funding round Applicants should have considered how projects will directly tackle poverty and respond to one or more of the 4 UK Department for International Development (DFID) strategic objectives (click here to view DFID's Departmental plan): strengthening global peace, security and governance strengthening resilience and response to crisis promoting global prosperity tackling extreme poverty and helping the world’s most vulnerable

Application process All applications must be completed online Reviews will take place shortly after the deadline Allocation is £4m over a 2-year period Financial management assessment (FMA) and due diligence (DD) will be carried out to ensure eligibility criteria is fully met

Review process All proposals will be assessed by experts reviewers Reviewers receive extensive guidance on scoring and reviewing proposals Reviews will be QA process to ensure fair assessment DFID moderate reviews and successful applicants chosen

Findings from first SCCF funding round Experience Project design and capability to deliver are key, especially for new organisations Identify the need Understanding of local context, meaningful consultations with beneficiary groups, and coordination with relevant local government departments or other organisations Logic Lack of logical linkage between the ‘need identified’ and the ‘intervention proposed’

Findings from first SCCF funding round Evidence Applicants should include evidence at each stage of the proposal Scale and Realism Unrealistic and inflated number of estimated beneficiaries Value for Money Demonstrate the rationale and define the long term developmental impact

Findings from recent research, and previous UK Aid Direct funding rounds The design of UK Aid Direct projects needs to be strengthened (most issues have stemmed from this) A greater focus should be given on sustainability and building sustainable elements into all projects Projects need to be able to respond better to changes in context and build on feedback and learning in order to adapt Approach to capacity building of beneficiaries, implementing partners, frontline staff and other stakeholders needs greater consideration

Project design section Look at the guidance section on our website Read about DFID’s strategic objectives and focus Look at what the fund is trying to achieve Think about how your project will contribute to the objectives of the fund Consider which UK Aid Direct approaches best fits with your approach

Project design section Think about, and detail who you consulted with during your project design Consider and demonstrate why your project is needed Consider and show what it is you want to achieve with the project and how Show how are you working with others How many people will benefit from the project? Show how you can address gender and disability issues

Leave no one behind – recommended reading Policy papers from DFID 1. Stepping up a gear for girls and women: updates to DFID’s Strategic Vision for Girls and Women, to 2020 and beyond 2. Disability Framework – One Year On: Leaving No One Behind 3. Leaving no one behind: Our promise (updated 10 January 2017)

Results section Think about and demonstrate what a successful outcome of the project would look like Consider and show how you will monitor your results Reflect on how the project will continue once funding ends

Results framework Each stage of the results framework should form a logical flow Outline the outcomes of the project Choose 2 indicators – ways of measuring the change Develop output indicators Outline the project activities

Value for money (VFM) – things to consider Consider VFM across your project when designing it Take a holistic approach and consider the following: Effectiveness Economy Efficiency Equity What would this grant enable you to do that you can’t currently do?

Risks Think about all risks the project faces: Security Financial Environmental Political You won’t be penalised for putting all risks down Be realistic

Financial & Due Diligence

Applications - financial requirements Stage Detail Requirements Application stage Financial due diligence Completed by the fund manager using details from the application Integrity due diligence Workplan and budget Produce a fully costed workplan in line with UK Aid Direct Financial Guidelines Prior to contracting Financial management assessment (FMA) An in-depth due diligence assessment requiring provision of documentation, staff interviews and a possible site visit Revised workplan and budget Revisions on SMILE (our online portal)

Policy/Procedure gaps identified by FRT Area Assessed Guidance Anti-bribery/corruption, fraud and whistle blowing policies Includes a range of best-practice templates for you to use when protecting your charity against fraud. Conflict of Interest Policy Includes a section on “How to identify a conflict of interest” Banking controls, Segregation of duty Controls and segregation of duty are explained Risk Management Includes details of how to manage risk, a risk register template, and examples of potential risk areas Insurance   Safeguarding – children and vulnerable adults Travel and subsistence Includes expenses policy guidance

What is a budget? A budget is…. An important financial plan for the future A control tool used to measure financial performance An important aid to forecasting future spending patterns An aid to predicting cashflow requirements A valuable learning tool

Budgeting considerations Be realistic – not over ambitious Follow your project plan Profile your costs Research costs thoroughly Talk to colleagues, do not prepare in isolation Gain consensus – let the budget owner own the budget

What should a budget include? Do include Inflation (if appropriate) Detailed, granular budgets Clear descriptors True costs of project delivery - Accurate staff time allocation - Justifiable overhead / support costs - All activity costs Do not include Non-cash items (such as depreciation) Any ineligible costs (such as vehicles, gratuities etc.) Contingency funds or speculative items Accruals or provisions *use the who, what, where, when, how approach …….

Findings from SCCF 1

Example feedback of a Successful Application (1) Project was based on lessons already learned A clear justification was provided for the selection of geographic area (marginalised communities and teacher training improvement needed) Good range of statistic were presented In line with UK Aid focus and priority areas On-going collaboration with local government Project would be making the most of local resources On-going capacity building of teachers Results Framework had appropriate measurable activities, outputs and milestones Detailed monitoring plan was provided

Example feedback of an unsuccessful application (1) In-line with UK Aid priorities of sustained poverty reduction Focused on vulnerable/marginalised populations Unclear who would be training teachers and what content would be covered No clear links with Ministry of Education or national curriculum Costs in budget contained very little detail No budget notes were provided to explain how costs had been arrived at No clarification if there were any costs associated with staff trained Sustainability needed to be addressed especially how Ministry of Education/district officials will be involved with this

Example feedback of a Successful Application (2) Project design was well thought through and clearly demonstrated Good relationship built with the implementing partner Linked well with UK Aid Direct priorities and Bangladesh development priorities Organisation clearly outlined their experience in the region Budget was very strong Risks were comprehensive and mitigation strategies realistic Results framework provided strong indicators with sex disaggregated milestone targets

Example feedback of a Unsuccessful Application (2) Reviewer had concerns with the intended approach and intervention Applicant hadn’t provided evidence of the need in the particular district they were proposing the project for Although the applicant stated that local government individuals backed the project based on certain conditions, these conditions weren’t outlined Very little budget given to M&E activities Project details didn’t match up to detail provided in the results framework Gender and disability were well considered Results framework stated that monitoring would be carried out via questionnaires and interviews but this hadn’t been budget for

Tips from SCCF1 Grant Holders “Read the UK Aid Direct website carefully and understand what kind of projects DFID is interested in supporting” “Make sure you understand concepts such as Value for Money and Efficiency” “Spend time, and budget, getting the M&E right. Don't be over ambitious in what you will achieve and what data you will collect. However, develop good learning questions so you can be continually looking to improve” “Create partnerships with other NGOs to make more effective delivery and better value for money”

Tips from a Performance and Risk Manager “Show you understand the context of where you propose to be working” “Explain how you will work with and build local capacity” “Be clear about your objectives” “Consider how you will collect evidence demonstrating what you hope to achieve”

Important points to remember A worked example should be included The results framework, workplan and budget operate together You should be able to understand your outputs and activities You need to have an idea of your budget lines and unit costs for both project activities and for your general project costs You need to know your implementing partners

Any Questions?